Electricity rates

Decision by ARSEL, to set new electricity tariffs

DECISION N°_0096_/ARSEL/DG/DCEC/SDCT OF_28 May 2012_ SETTING ELECTRICITY TARIFFS EXCLUDING TAXES APPLICABLE BY Eneo Cameroon FOR 2012.
THE DIRECTOR GENERAL,

MINDFUL of the Constitution;
MINDFUL of Ordinance No. 90/001 of 29 January 1990 creating the Free Zone regime;
MINDFUL of Law n°98/009 of 1st July 1998 to lay down the finance law of the Republic of Cameroon for the 1998-1999 financial year;
MINDFUL of Law No. 99/016 of 22 December 1999 to lay down the General Statute of Public Institutions and Companies of the Public and Para-public Sector;
MINDFUL of Law No. 2007/006 of 26 December 2007 to lay down the finance regime of Cameroon;
MINDFUL of Law No. 2011/020 of 14 December 2011 to lay down the Finance Law of the Republic of Cameroon for the 2012 financial year
MINDFUL of Law No. 2011/022 of 14 December 2011 governing the electricity sector in Cameroon;
MINDFUL of Decree No. 99/125 of 15 June 1999 on the organisation and functioning of the Electricity Regulatory Agency;
MINDFUL of decree n°2010/200 of 23 June 2010 to appoint the Director General of the Electricity Regulatory Agency;
MINDFUL of decree n°000013/MINEE of 26 January 2009 approving the Regulations of the Public Electricity Distribution Service of Eneo Cameroon;
MINDFUL of Article 2 of the Terms and Conditions of the Framework Concession and Licence Agreement signed on 18 July 2001 between the Republic of Cameroon and Eneo Cameroon;
MINDFUL of the amendments to the Concession and Licence Agreement of Eneo Cameroon signed in 2006;
Considering the tariff file submitted by Eneo Cameroon on 31 October 2011;
HEREBY DECIDES:

ARTICLE 1. As from 1st June 2012, the tariffs for the sale of electricity, excluding taxes, applicable by Eneo Cameroon shall be as follows:
I. LOW VOLTAGE CUSTOMERS

A) DOMESTIC OR RESIDENTIAL USES
Monthly consumption bracket tariffs
1. Consumption less than or equal to 110 kWh 50 CFAF/kWh
2. Consumption between 111 kWh and 400 kWh 79 CFAF/kWh
3. Consumption between 401 and 800 kWh 94 CFAF/kWh
4. Consumption between 801 and 2000 kWh 99 CFAF/kWh

B) NON-RESIDENTIAL OR OTHER USES
Monthly consumption bracket tariffs
1. Consumption less than or equal to 110 kWh 84 CFAF/kWh
2. Consumption between 111 kWh and 400 kWh 92 CFAF/kWh
3. Consumption between 401 and 1000 kWh 99 CFAF/kWh

C) MAINTENANCE AND RENEWAL OF METERS AND CIRCUIT BREAKERS
The various maintenance and renewal costs for meters and circuit breakers have been discontinued.

D) STREET LIGHTING
Tariff: 66 CFAF/kWh.

II. MEDIUM VOLTAGE CUSTOMERS

The tariff shall be composed of two cumulative segments:

a fixed monthly rate of CFAF 3700 per kW of subscribed power
a proportional rate per kWh consumed, which depends on the number of hours of monthly use of the subscribed power and the period of use, in accordance with the tables below;
the various maintenance and renewal charges for meters and circuit breakers have been discontinued.

A) GENERAL REGIME < 1 MW
Number of hours Between 11:00pm and 6:00pm Between 6:00pm and 11:00pm
0 to 200 hours 70 85
From 201 to 400 hours 65 85
More than 400 hours 60 85

B) GENERAL REGIME > 1 MW
Number of hours Between 11:00pm and 6:00pm Between 6:00pm and 11:00pm
0 to 200 hours 70 85
From 201 to 400 hours 65 85
More than 400 hours 60 85

C) FREE POINTS REGIME
Number of hours Between 11:00pm and 6:00pm Between 6:00pm and 11:00pm
0 to 200 hours 70 85
From 201 to 400 hours 65 85
More than 400 hours 60 85

Companies located in Free Zones or admitted to the Industrial Free Point regime after the signature of this decision shall be exempted from the payment of the consumption deposit.
An increase of 10% of the proportional tariffs shall be collected as a guarantee of the compliance with the minimum export rate of 80% of the production of the company in the Free Zone or Industrial Free Point concerned. This deduction shall be retroceded at the end of each financial year in the form of a credit note after justification to Eneo Cameroon of compliance with the 80% export rate of the production.

III. HIGH VOLTAGE CUSTOMERS

The rates for the sale of High Voltage electricity to new subscribers shall be set according to the contracts signed between Eneo Cameroon and the said subscribers, following the ruling of the Electricity Regulatory Agency, in accordance with the provisions of the specifications of Eneo Cameroon's framework concession and licence agreement.

The rates for the sale of high voltage electricity to subscribers that existed on the date of signature of Eneo Cameroon's concession and licence agreements remain in force and shall be revised in accordance with the provisions of the specifications of Eneo Cameroon's framework concession and licence agreement.

ARTICLE 2: The provisions of Law n°98/009 of 1st July 1998 to lay down the Finance Law on the non-imposition of Value Added Tax (VAT) on electricity consumption less than or equal to 110 kWh remain in force.

ARTICLE 3(1). In order to avoid any delay in the reading of the indexes at the risk of unduly shifting the consumer to a consumption bracket with a higher cost per Kwh, Eneo Cameroon is obliged to strictly comply with the provisions of article 7-2 of the Public Electricity Distribution Service Regulations which stipulate that bills shall be drawn up monthly, in principle, on a set date, and distributed by Eneo Cameroon's employees duly mandated by Eneo Cameroon to the various points of consumption;
(2) In case the reading or billing is done after 30 days, Eneo Cameroon shall be obliged to carry forward the additional consumption in the following month's bill;
(3) Eneo Cameroon may resort to advance payment of electricity consumption to its customers, provided that it obtains prior approval from the Regulator for the implementation modalities and incentives.

Article 4. Eneo Cameroon must, in accordance with the provisions of Article 76-1 of the Public Electricity Distribution Service Regulations and within three months of the signing of this decision, and subject to the infringement and sanctions regime in force, offer users the possibility of choosing between different types of meters and, in particular, of migrating to smart prepayment or post-payment meters, approved in Cameroon

Article 5. Any compensation can only be obtained after an audit of the quantities of energy sold, the quality of service, investment obligations and revenue control.
6. This decision shall be registered and published wherever necessary. /-

Yaounde, 28 May 2012
Jean Pierre KEDI
THE DIRECTOR GENERAL