Electricity Law of the People's Republic of China

Electricity Law of the People's Republic of China Chapter I General Provisions Article 1 This law is formulated to guarantee and promote the development of the electric power industry, to safeguard the legal rights and interests of investors, operators and users of electric power, and to maintain the safe operation of electric power.

Article 2 This law is applicable to activities concerning the construction, production, supply and utilization of electric power within the boundaries of the People's Republic of China.

Article 3 The electric power industry shall fit the needs of national economy and social development and develop in advance appropriately. The State encourages and guides legal investment in the development of power sources and the establishment of power production enterprises by domestic and overseas economic organizations or individuals.

Investment in the power industry shall implement the principle of "whoever invests, benefits." Article 4 Electric power facilities shall be under the protection of the State.

It is forbidden for any unit or individual to endanger the safety of electric power facilities or to illegally occupy or utilize electric energy.

Article 5 The construction, production, supply and utilization of electric power shall protect the environment according to law, adopt new technologies, minimize discharge of poisonous waste, and prevent pollution and other public hazards.

The State encourages and supports electricity generation by using renewable and clean energy resources.

Article 6 The administrative department of electric power under the State Council shall be responsible for the supervision and control of the electric power industry throughout the country. The departments concerned under the State Council shall, within the scope of their respective authorities, be responsible for the supervision and control of electric power industry.

The comprehensive administrative departments of economy under the local people's governments at and above the county level, acting as the administrative departments of electric power in their own administrative divisions, shall be responsible for the supervision and control of the electric power industry. The departments concerned under the local people's governments at and above the county level shall, within the scope of their respective authorities, be responsible for the supervision and control of electric power industry.

Article 7 Electric power construction enterprises, production enterprises and network operation enterprises shall operate autonomously, be responsible for their own profits and losses, and be subject to the supervision of the administrative departments of electric power, according to law.

Article 8 The State assists and supports minority nationality areas, frontier and remote areas, and poverty-stricken areas to develop their electric power industries.

Article 9 The State encourages the adoption of advanced science and technology as well as managerial methods in the construction, production, supply and utilization of electric power, and gives awards to those units and individuals that achieve remarkable successes with regard to research, development, and adoption of advanced science and technology as well as managerial methods.

Chapter II Construction of Electric Power Article 10 The planning for electric power development shall be drawn up on the basis of the requirements of national economy and social development and shall be put into the plan of national economy and social development.

The planning for electric power development shall reflect the principles of rational utilization of energy, coordinated development of the power sources and power networks, increasing economic benefits, and being conducive to environmental protection.

Article 11 The construction and retrofit planning of urban power networks shall be put into the overall urban planning. The urban people's governments shall arrange to provide land for substation facilities, transmission line corridors, and cable channels in accordance with the planning.

No unit or individual may illegally occupy or utilize the land designated to substation facilities, transmission line corridors, and cable channels.

Article 12 The State formulates relevant policies to support and promote electric power construction.

The local people's governments shall adopt diversified measures in line with local conditions to develop power sources and promote power construction on the basis of the electric power development planning.

Article 13 Investors in electric power shall enjoy legal rights and interests over the electricity generated from their investment. Where electricity thus generated feeds into the power network, the investor shall have the priority in utilization; where a captive power plant is not in parallel operation with the power network, the investor shall have the authority in deciding the utilization on its own.

Article 14 Power construction projects shall conform to the electric power development planning as well as the State's industrial policies on the power industry.

No power equipment and technology declared obsolete by formal decree of the State shall be used for power construction projects.

Article 15 Projects for power networks such as transmission, substation, power dispatching telecommunication and automation projects, and environmental protection projects, shall be designed, constructed, inspected for acceptance and put into operation simultaneously with electricity generation projects.

Article 16 Land used for power construction projects shall be handled in accordance with relevant laws and administrative regulations; and in the case where the land is legally requisitioned, the land compensation fee and relocation compensation fee shall be paid therefor according to law, and the relocation of residents shall be handled properly.

Power construction shall carry out the principles of giving practical protection to cultivated land and economizing on land utilization.

The local people's governments shall support and assist the legal utilization of land and the relocation of residents for the sake of power construction.

Article 17 The local people's governments shall support power enterprises in exploring water resources, tapping and using water according to law for the construction of electricity generation projects. The power enterprises shall economize on water.

Chapter III Electric Power Production and Power Network Management Article 18 Electric power production and power network operation shall be in line with the principles of safety, high quality and economy.

The operation of power networks shall be maintained in a continuous and stable way and the reliability of power supply shall be guaranteed.

Article 19 Electric power enterprises shall strengthen the management on safe production, adhere to the principle of safety first and prevention prevailing, and set up and improve the responsibility system of safe production.

Electric power enterprises shall carry out regular check, inspection and maintenance on power facilities in order to guarantee their normal operation.

Article 20 Enterprises engaged in the supply and transportation of fuel for electricity generation and electric power production enterprises shall supply, transport, and unload and take delivery of such fuel in accordance with the relevant regulations of the State Council or contractual agreements.

Article 21 Unified dispatch and hierarchical management shall be implemented in the operation of power networks. No unit or individual may illegally intervene in the dispatch of power networks.

Article 22 The State advocates parallel operation between power production enterprises and power networks or among networks. Requests by power production enterprises with the qualifications of an independent legal entity to feed its electricity generated into a power network shall be accepted by the network operation enterprises.

Parallel operation must be consist with the standards of the State or the power industry.

The two parties in parallel operation shall sign the parallel operation agreements and stipulate the rights and obligations of each in accordance with the principles of unified dispatch, hierarchical management, equality and mutual benefits, and reaching unanimity through consultation; in the case where the two parties fail to reach a parallel operation agreement, the administrative department of electric power at and above the provincial level shall coordinate and make a decision.

Article 23 The regulations for power network dispatch and management shall be worked out by the State Council subject to the provisions in this law.

Chapter IV Supply and Utilization of Electric Power Article 24 The State adopts the principles of safe, economical and planned supply and utilization of electric power.

The regulations of supply and utilization of electric power shall be worked out by the State Council on the basis of the provisions in this law.

Article 25 Power supply enterprises shall supply power to the users within their franchised service areas.

The division of electricity service areas shall take into account such factors as the structure of power networks and the rationality of power supply. Only one power supply enterprise shall be established in each electricity service area.

The establishment or alteration of electricity service areas within the territories of provinces, autonomous regions or municipalities directly under the Central Government shall be applied by power supply enterprises, such application shall be examined by the administrative departments of electric power under the people's governments at the level of provinces, autonomous regions, or municipalities directly under the Central Government in conjunction with relevant departments at the same level, if approved, the said administrative departments of electric power shall issue the Power Supply Business Permits. The establishment or alteration of trans-regional electricity service areas shall be examined by the administrative department of electric power under the State Council, which, if approved, shall issue the Power Supply Business Permit.

Power supply enterprises shall not begin operation until they apply for and obtain the business licenses from the industrial and commercial administrations by showing the Power Supply Business Permit.

Article 26 Power supply enterprises in any electricity service area shall be obligated to supply power as the State stipulated to the users within their service areas. Power supply enterprises shall not be permitted to violate the State's regulations by refusing to supply power to any unit or individual applying for electricity within their service areas.

Applications for new electricity utilization, temporary electricity utilization, increases in capacity of electricity utilization, as well as alteration and termination of electricity utilization shall accomplish the procedure as stipulated.

Power supply enterprises shall, at their business places, publicize the procedures, rules and the charge standard on electricity utilization, and shall provide any other relevant information the users must know.

Article 27 The power supply party and utilization party shall, on the basis of the principles of equality, voluntary participation and reaching unanimity through consultation, sign the power supply and utilization contract to stipulate the rights and obligations of both parties in line with the regulation of power supply and utilization drawn up by the State Council.

Article 28 Power supply enterprises shall guarantee that the quality of the electricity they supply to the users is in conformity to the standards of the State. Problems of electricity quality caused by utility power supply facilities shall be solved without delay.

In case that a user has special requirement on electricity quality power, supply enterprises shall supply corresponding electric power according to its necessity and the possibility of the power network.

Article 29 Power supply enterprises shall supply power to users continuously without interruption under normal operation of the power production and supply systems.

If it is necessary to interrupt the supply due to such reasons as checking and repairing the power supply facilities, legally limiting power utilization amount, or due to illegal utilization of electricity by users, the power supply enterprises shall notify users in advance according to relevant State regulations.

Users having disagreements with a power shut-off by a power supply enterprise may complain to the administrative departments of electric power; the complaints shall be handled by the said departments in conformity with legal provisions.

Article 30 In the event of emergency power supply for rescue and relief work, power supply enterprises must arrange power supply as soon as possible.

The expenses for power supply project and the charges for electricity utilization payable shall be handled according to the relevant regulations of the State.

Article 31 Power users shall install electricity meters. The amount of electricity utilized by the user shall be the amount indicated by the electricity meters certified by an institution of measurement appraisal in conformity with legal provisions.

The design, construction and installation, as well as operation management of power-receiving devices of users shall be consistent with the State standards or the standards of the power industry.

Article 32 Electricity utilization by users shall not endanger the safety of power supply and utilization, nor disturb the order of power supply and utilization.

Power supply enterprises are entitled to stop anyone from endangering the safety of power supply and utilization or disturbing the order of power supply and utilization.

Article 33 Power supply enterprises shall calculate and collect the electricity fees from users according to the electricity price that has been examined and approved by the State and the records of the electricity meters.

Safety inspectors, meter readers, and fee collectors of a power supply enterprise shall present proper identification when entering user's house to conduct safety inspections, read the meters, or collect the fees.

Power users shall pay electricity fees on time according to the electricity price examined and approved by the State and the records of electricity meters, and shall provide convenience and assistance to the safety inspectors, meter readers, and fee collectors in fulfilling their duties in conformity with legal provisions.

Article 34 Power supply enterprises and users shall both observe the relevant regulations of the State by adopting efficient measures to achieve the safe, economical and planned use of power.

Chapter V Electricity Price and Electricity Fee Article 35 Electricity price herein refers to the power purchase price from the power production enterprises by the power network, the mutual-supply electricity price among interconnected power networks, and the electricity sale price of the power networks to the users.

The electricity price shall be based on the principle of uniform policy, unified pricing and be regulated at different levels.

Article 36 The formulation of electricity price shall be based on the principles of reasonably compensating the cost, reasonable profits, computing tax according to law, fairly dividing the cost, and promoting power construction.

Article 37 The power purchase price shall follow the principle of equal price for the same electricity quality on the same power network. Specific methods and implementation procedures shall be worked out by the State Council.

For those power production enterprises which need to set the purchase price differently under a special situation, specific methods shall be worked out by the State Council.

Article 38 For the power purchase price of a power network spanning different provinces, autonomous regions, or municipalities directly under the Central Government, as well as in a provincial power network, a proposal shall be made through consultation by the enterprises engaged in power production and power network operation, and shall be examined and approved by the pricing administrative department of the State Council.

For the power purchase price of an independent power network, a proposal shall be made through consultation by the enterprises engaged in power production and power network operation, and shall be examined and approved by the authorized pricing administrative department.

For the power produced by locally funded power production enterprises, if forming an independent power network within different regions of the province or generated for local use, the price may be under the control of the people's governments of the province, autonomous region or municipality directly under the Central Government.

Article 39 For the mutual-supply electricity price between independent power networks and networks spanning different provinces, autonomous regions or municipalities directly under the Central Government, or between independent networks and provincial networks, a proposal shall be made through consultation by the two parties, and shall be examined and approved by the pricing administrative department of the State Council or its authorized department.

For the mutual-supply electricity price among independent power networks, a proposal shall be made through consultation by the two parties and shall be examined and approved by the authorized pricing administrative department.

Article 40 For the sale price of electricity of power networks spanning different provinces, autonomous regions or municipalities directly under the Central Government, as well as provincial networks, a proposal shall be made by the power network operation enterprises and shall be examined and approved by the pricing administrative department of the State Council or its authorized department.

For the sale price of electricity of independent power networks, a proposal shall be made by the power network operation enterprises and be examined and approved by the authorized pricing administrative department.

Article 41 The State adopts a categorized electricity price and time-of-use electricity price. The standard for categorization and the method for division of the time period shall be stipulated by the State Council.

The same standard of the electricity price shall be implemented to all users of the same category, with the same voltage grade within the same power network.

Article 42 The charge standard for power capacity expansion of the users shall be stipulated by the pricing administrative department in conjunction with the administrative department of electric power of the State Council.

Article 43 No unit may set the price of electricity beyond its authority. No power supply enterprise may change the price of electricity without authorization.

Article 44 All units or individuals are forbidden to levy a surcharge on the electricity charges, however, for cases with other provisions in laws and administrative regulations, those provisions shall be observed.

For surcharges in the charges of electricity generated for locally funded power projects, the pricing methods shall be worked out by the people's governments of the provinces, autonomous regions, or municipalities directly under the Central Government based on the relevant regulations of the State Council.

Power supply enterprises are forbidden to charge power users on others' behalf.

Article 45 The regulations of power pricing management shall be worked out by the State Council based on the provisions of this law.

Chapter VI Rural Electric Power Construction and AgriculturalUtilization of Electricity Article 46 The people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government shall formulate the planning for the development of rural electrification and shall put the planning into the plan of local electric power development as well as the plan of national economy and social development.

Article 47 The State adopts preferential policies for rural electrification, and provides special support to rural power construction in minority nationality areas, frontier and remote areas, and poverty-stricken areas.

Article 48 The State advocates the exploitation of rural hydropower resources, the construction of medium and small size hydropower stations to promote rural electrification.

The State encourages and supports rural areas to utilize solar energy, wind energy, geothermal energy, biomass energy, and other energy resources to develop rural electric power sources and to increase the rural power supply.

Article 49 The local people's governments at and above the county level and their comprehensive economic departments, when allocating electricity quotas, shall guarantee the proper proportion of electricity for rural and agricultural utilization, and give priority to the electricity for rural floodwater drainage, combat of drought, and seasonal agricultural production.

Electric power enterprises shall comply with the allocation of electricity as set forth in the preceding section, and shall not reduce the quotas for rural and agricultural utilization.

Article 50 The electricity price for agriculture shall be set in accordance with the principles of "cost compensation" and "marginal profit".

The price of electricity utilized by farmers and by local urban residents for their living shall be gradually unified.

Article 51 The regulation on management of electric power for agricultural and rural utilization shall be worked out by the State Council.

Chapter VII Protection of Power Facilities Article 52 No unit or individual may harm electricity generation, substation and electric power line facilities as well as their relevant auxiliary facilities.

Any explosion operations that are conducted in the vicinity of power facilities, and other work that might endanger the safety of power facilities, shall be in accordance with regulations of the State Council concerning the protection of power facilities, conducted only after approval and definite measures for ensuring the safety of the power facilities are taken.

Article 53 The administrative department of electric power shall, according to the regulations of the State Council concerning the protection of power facilities, set up signs in power facility protection areas.

No unit or individual may construct any buildings or other constructional structures, plant vegetation, or place objects which might endanger the safety of power facilities within power facility protection areas demarcated according to law.

Vegetation that imperils the safety of power facilities but was planted before the area was demarcated according to law as a power facility protection area, shall be trimmed or cut.

Article 54 In power facility protection areas demarcated according to law, units or individuals may carry out operations that might endanger the safety of the power facilities only after approval of the administrative department of electric power and definite safety measures have been taken.

Article 55 If power facilities and public projects, afforestation projects or other projects obstruct one another in the process of construction, reconstruction and expansion, the units involved shall begin operations only after consultation in accordance with the State's relevant regulations and reaching an agreement.

Chapter VIII Supervision and Inspection Article 56 The administrative department of electric power shall supervise and inspect the implementation of the electricity laws and the administrative regulations by electric power enterprises and users.

Article 57 If needed, the administrative department of electric power may staff electric power supervisory and inspective personnel.

Electric power supervisory and inspective personnel shall be impartial and honest, enforce laws justly, be familiar with the electricity laws and regulations, and master relevant specialized electric power techniques.

Article 58 When electric power supervisory and inspective personnel perform their duties, they shall have the rights to ascertain the implementation of the electricity laws and the administrative regulations by electric power enterprises and users, scrutinize relevant documents, and have the authority to enter the spots for inspection.

The electric power enterprises and users shall provide all convenience to electric power supervisory and inspective personnel who are on duty.

When carrying out supervision and inspection, electric power supervisory and inspective personnel shall present proper identification.

Chapter IX Legal Responsibility Article 59 Electric power enterprises or users who break the power supply and utilization contract and thereby cause the other party contractual losses shall be liable for compensation according to law.

Electric power enterprises, in violation of the provisions of Article 28 or Section 1 of Article 29 of this law, that do not ensure the quality of power supply or interrupt the power supply without prior notice to users and thereby cause users losses, shall be liable for compensation according to law.

Article 60 Electric power enterprises that cause users or the third party losses or damages because of electric power operation fault shall be liable for compensation according to law.

Electric power enterprises are exempt from compensation liability if an electric power operation fault is caused by one of the following factors: (1) force major; (2) the user's own fault.

If losses or damages are caused to electric power enterprises or other users because of the fault of a user or the third party, the user or the third party causing the losses shall be liable for compensation according to law.

Article 61 For those who violate the provisions of Section 2 of Article 11 of this law by illegally occupying or utilizing the land for substation facilities, transmission line corridors, and cable channels, the local people's governments at and above the county level shall order them to rectify within a given time period; if a rectification is not made within the specified time, the obstacles shall be forcefully eliminated.

Article 62 For those electric power construction projects that violate the provisions of Article 14 of this law by conflicting with the power development planning or industrial policy, the administrative department of electric power shall order them to stop the construction of the project.

Those electric power construction projects that violate the provisions of Article 14 of this law by utilizing electric power equipment or technology declared obsolete by formal decree of the State, the administrative department of electric power shall order them to stop the use of such equipment or technology, confiscate the obsolete electric equipment and impose a fine of up to 50000 yuan.

Article 63 For those who violate the provisions of Article 25 of this law by supplying electricity or changing the service area without permission, the administrative department of electric power shall order them to rectify, confiscate any illegal gains, and impose a fine of up to five times the amount of any illegal gains.

Article 64 For those who violate the provisions of Article 26 or Article 29 of this law by refusing to supply electricity or by interrupting power supply, the administrative department of electric power shall order them to rectify, and give a disciplinary warning; if the case is serious, an administrative penalty shall be imposed upon the involved person in charge and those persons who bear direct responsibility.

Article 65 For those who violate the provisions of Article 32 of this law by endangering the safety of power supply and utilization or by disturbing the order of power supply and utilization, the administrative department of electric power shall order them to rectify and give them a warning. If the case is serious or in case of refusing to make rectification, the administrative department of electric power may suspend their power supply and impose a fine of up to 50000 yuan.

Article 66 For those who violate the provisions of Article 33, Article 43 or Article 44 of this law by charging users electricity fees that are not based on the price approved by the State or that are not based on the records of the electricity meters; or those who exceed their authority in setting electricity prices or in charging other fees, the pricing administrative department shall give them a warning, order them to return the fees and charges collected illegally, and may impose a fine of up to five times the amount of the fees and charges collected illegally. If the case is serious, an administrative penalty shall be imposed upon the involved person in charge and those persons who bear direct responsibility.

Article 67 For those who violate the provisions of Section 2 of Article 49 of this law by reducing the quota for agricultural and rural utilization, the administrative department of electric power shall order them to rectify.

If the case is serious, an administrative penalty shall be imposed upon the involved person in charge and those persons who bear direct responsibility. If losses are thereby caused, the violator shall be ordered to make the compensation.

Article 68 For those who violate the provisions of Section 2 of Article 52 or Article 54 of this law by carrying out operations in the vicinity of the power facilities or in a power facility protection area demarcated according to law without permission or without taking any safety measures, which endanger the safety of power facilities, the administrative department of electric power shall order them to cease their operations, restore to the original state, and to make compensation for any losses.

Article 69 For those who violate the provisions of Article 53 of this law by constructing building or other constructional structures, planting vegetation, or placing objects, which endanger the safety of power facilities in a power facility protection area demarcated according to law, the local people's government shall order them compulsorily to dismantle the construction, chop the vegetation, or eliminate the objects.

Article 70 The public security office shall, according to the relevant provisions of the Public Order Management Regulations, impose a penalty upon any of the following actions. Those actions which constitute crimes shall be prosecuted for criminal liability according to law: (1) Hindering or delaying the process of power construction or the urgent repair and maintenance of power facilities, thereby making it impossible for the power construction or repair and maintenance of power facilities to be carried out normally; (2) Disturbing the order of power production enterprises, substations, or power dispatching agencies and power supply enterprises, and thereby making it impossible for normal production, work, or service to be conducted normally; (3) Striking or openly insulting electricity inspector, meter reader or fee collector who is carrying out his duty; (4) Refusing or preventing electric power supervisory and inspective personnel from carrying out their duties according to law.

Article 71 For those who steal electric energy, the administrative department of electric power shall order them to stop the illegal behavior, to pay the electricity fees, and to be imposed a fine of up to five times the amount of the electricity fees that should be paid. Those actions which constitute crimes shall be prosecuted for criminal liability according to the provisions of Article 151 or Article 152 of the Criminal Law.

Article 72 Those who steal, or damage by other means electric power facilities and harm the public safety, shall be prosecuted for criminal liability according to the provisions of Article 109 or Article 110 of the Criminal Law.

Article 73 Any person of an administrative department of electric power who abuses his authority, neglects his duties, plays favoritism, or commits irregularities, shall be prosecuted for criminal liability in the case where a crime is constituted; or an administrative penalty shall be imposed in the case where no crime is constituted.

Article 74 Any staff member or employee of an electric power enterprise who violates rules and regulations, makes a dispatch contrary to regulations, or disobeys the dispatch order and thereby causes a serious accident, shall be prosecuted for criminal liability according to provisions of Article 114 of the Criminal Law.

Any staff member or employee of an electric power enterprise who intentionally delays urgent repair and maintenance on electric power facilities or delays power supply for rescue and relief work and thereby causes serious consequences, shall be prosecuted for criminal liability according to the provisions of Article 114 of the Criminal Law.

Management personnel, electricity inspector, meter readers or fee collectors of an electric power enterprise who blackmail the users or seek personal gains shall be prosecuted for criminal liability in the case where a crime is constituted; or an administrative penalty shall be imposed in the case where no crime is constituted.

Chapter X Supplementary Provisions Article 75 This law shall come into force on April 1, 1996.

Appendix: Related Articles of the Criminal Law Article 109 Those who destroy electric power, gas, or other inflammable or explosive equipment and thereby endanger public safety, if serious consequences have not yet resulted in, shall be sentenced to imprisonment between three to ten years.

Article 110 Those who destroy vehicles, traffic equipment, electric power or gas equipment, or inflammable or explosive equipment, thus causing serious consequences, shall be sentenced to more than 10 years' imprisonment, life imprisonment, or death.

Those who negligently commit the crime mentioned in the preceding section shall be sentenced to imprisonment of up to seven years or criminal detention.

Article 114 If any staff member or employee of a factory, mine, forestry farm, construction enterprise or other enterprise or institution disobeys management, violates rules and regulations, or forces workers to disobey instructions and work in an operational risks, and thereby causes serious injury or death, the person shall be sentenced to imprisonment of up to three years or criminal detention; if the case is extremely serious, the person shall be sentenced to imprisonment between three to seven years.

Article 151 Those who steal, cheat, or rob a large amount of public or private property shall be sentenced to imprisonment of up to five years, criminal detention, or criminal surveillance.

Article 152 Habitual thieves, cheats, or those who steal, cheat, or rob a huge amount of public or private property shall be sentenced to imprisonment between five to ten years; if the case is extremely serious, the person shall be sentenced to more than 10 years' imprisonment or life imprisonment, and may concurrently be sentenced to a confiscation of property.