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REGULATIONS ON SUPPLY AND UTILIZATION OF ELECTRICITY

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-04-17 Effective Date  1996-09-01  

Regulations on Supply and Utilization of Electricity



Chapter I  General Provisions
Chapter II  Electricity Supply Areas
Chapter III  Electricity Supply Facilities
Chapter IV  Supply of Electricity
Chapter V  Utilization of Electricity
Chapter VI  Electricity Supply and Demand Contracts
Chapter VII  Supervision and Administration
Chapter IX  Legal Responsibility
Chapter IX  Supplementary Provisions

(Promulgated by Decree No.196 of the State Council of the People's

Republic of China on April 17, 1996)
Chapter I  General Provisions

    Article 1  These Regulations are formulated according to the Electric
Power Law of the People's Republic of China for the purposes of strengthening
the administration of electricity supply and utilization, protecting the
legitimate rights and interests of electricity supplying and demanding
parties, maintaining the order of electricity supply and utilization and
realizing a safe, economical and rational supply and utilization of
electricity.

    Article 2  Within the territory of the People's Republic of China, all
enterprises supplying electricity (hereinafter referred to as electricity
supply enterprises), users of electricity (hereinafter referred to as users)
and other organizations and persons involving in electricity supply and
utilization shall observe these Regulations.

    Article 3  The administrative department of electric power of the State
Council shall be in charge of the supervision and administration of
electricity supply and utilization throughout the country.

    The administrative departments of electric power of the people's
governments at county level and above shall be responsible for the
supervision and administration of electricity supply and utilization within
their respective administrative regions.

    Article 4  Electric network operating enterprises shall handle the
electricity supply and utilization business within their own supply areas in
accordance with law and be subject to the supervision of the administrative
department of electric power.

    Article 5  The state adopts the principle of safe, economical and planned
use in the administration of electricity supply and utilization.

    Electricity supply enterprises and users shall abide by relevant state
regulations and adopt effective measures to pursue a safe, economical and
planned utilization of electricity.

    Article 6  Electricity supply enterprises and users shall sign electricity
supply and demand contracts on the basis of equality, voluntariness and
negotiation.

    Article 7  Administrative departments of electric power shall strengthen
the supervision and administration of electricity supply and utilization,
coordinate the relations between the electricity supplying and demanding
parties and forbid any act that threaten the safety of electricity supply
and utilization and any act of illegally seizing electric energy.
Chapter II  Electricity Supply Areas

    Article 8  An electricity supply enterprise shall supply electricity to
users within its authorized supply area.

    For the division of supply areas, such factors as the structure of
electric networks and rationality of electricity supply shall be taken into
consideration. Every supply area shall have only one supply agency.

    Article 9  For establishment or change of an electricity supply area
within a province, autonomous region or municipality directly under the
central government, the electricity supply enterprise shall submit an
application; after examined and approved by the administrative department of
electric power of people's government of the province, autonomous region
or municipality directly under the central government in conjunction with
other relevant departments at the same level, a Permit for Electricity Supply
shall be issued to the applicant by the said administrative department of
electric power. The establishment or change of a supply area involving tow or
more provinces, autonomous regions or municipalities directly under the
central government shall be examined by the administrative department of
electric power of the State Council, which, if approving, shall issue a
Permit for Electricity Supply to the applicant. The electricity supply agency
shall, on the strength of the Permit for Electricity Supply, apply for and
obtain a business license from the administrative department for industry and
commerce before it may start the supply of electricity.

    Electric network operating enterprises shall, in accordance with the
structure of electric networks and the principle of nationality of
electricity supply, assist the administrative department of electric power in
the division of electricity supply areas.

    Measures for division and administration of electricity supply areas
shall be formulated by the administrative department of electric power of the
State Council.

    Article 10  The electric power delivered to a hookup network by
electricity production enterprises under hookup agreements shall be unifiedly
managed and sold by the electricity supply agency.

    Article 11  If a user demand an electricity capacity beyond the ability
of the supply enterprise of the supply area to which the user belongs, the
administrative department of electric power at provincial level or above
shall designate another supply enterprise for the user.
Chapter III  Electricity Supply Facilities

    Article 12  People's governments at county level and above shall
incorporate the planning for construction and renovation of urban and rural
electric networks in the general plan for the urban and rural construction.
Administrative departments of electric power at various levels shall, in
conjunction with other relevant administrative departments and electric
network operating enterprises, make proper planning for the construction and
renovation of urban and rural electric networks. Electricity supply
enterprises shall arrange the construction of electricity supply facilities
and manage the operation in accordance with said planning.

    Article 13  Local people's governments at various levels shall, in
accordance with the general planning for urban and rural construction, make
an overall arrangement for land needed for urban and rural electricity
supply line corridors, electric cable channels, regional transformation and
distribution stations and service agencies.

    Electricity supply enterprises may, in accordance with relevant state
regulations, set up lines, lay cables and construct public electricity supply
facilities on the land planned for line corridors, cable channels, regional
transformation and distribution stations and service agencies.

    Article 14  People's governments of townships, nationality townships, and
towns or relevant departments of local people's governments at county level
or above shall be in charge of the construction, operation and maintenance of
street lamps and pay the electricity fee, or they may also entrust, with
compensation, an electricity supply enterprise with the work of design,
construction, maintenance and management.

    Article 15  The design, construction, test and operation of electricity
supply and receipt facilities shall be consistent with the national or
industrial standards of the electric power.

    Article 16  When electricity supply enterprises or users construct or
maintain electricity supply or receipt facilities, the relevant organizations
and persons in the operation areas shall provide assistance and convenience.
If any damage is caused to buildings or crops in operations, restorations
shall be made or proper compensation be given in accordance with provisions
of relevant laws and administrative regulations.

    Article 17  Public electricity supply facilities which have been
completed and put into operations shall be unifiedly maintained and managed
by the electricity supply unit. With an approval of the administrative
department of electric power, the electricity supply enterprise may use,
renovate and extend the electricity supply facilities.

    Owners of joint electricity supply facilities shall consult and make
determination upon the maintenance and management of said facilities. The
owners may either carry out the maintenance and management by themselves or
entrust them to an electricity supply enterprise.

    Electricity supply facilities for a special user which have been
completed and put into operations shall be maintained and managed by said
user, or the user may entrust them to an electricity supply enterprise.

    Article 18  If there is a need for any construction to remove, renovate
or take protective measures to any completed electricity supply facilities,
the construction unit shall consult with the facilities managing unit in
advance. The expenses needed therefor shall be borne by the construction
unit.
Chapter IV  Supply of Electricity

    Article 19  The quality of electricity at the users' end shall conform to
the national or industrial standards of electric power.

    Article 20  The form of electricity supply shall be determined through
consultation by the parties to the electricity supply and demand under the
principles of safety, reliability, economy, rationality and being easy to
manage and according to relevant state regulations, the electric network
planning, electricity demand and the local electricity supply conditions and
other relevant conditions.

    For an area which public electricity supply facilities can not reach,
the electricity supply enterprise may entrust the supply to a nearby unit
which has the ability. No unit may supply electricity to others except with
the entrustment of an electricity supply enterprise.

    Article 21  When a rescue or relief operation needs an urgent supply of
electricity, the electricity supply enterprise must arrange the electricity
supply as quick as possible. The costs on the supply project needed and
electricity fees payable shall be borne by the relevant department of the
relevant local people's government from the relief funds, with the exception
of electricity fees for drought relief which shall be borne by users.

    Article 22  If a user has special requirements on the quality of
electricity supply, the electricity supply enterprise shall, according to its
necessity and the probability of the electric network, supply electricity
accordingly.

    Article 23  Applications for new use, temporary use or additional
capacity, change or termination of electricity utilization shall all
accomplish the procedures with the local electricity supply enterprise and
fees shall be paid therefor in accordance with relevant state regulations.
The electricity supply enterprise may not refuse to supply electricity except
with some justified reasons. Every electricity supply enterprise shall, at
its place of business, make public the procedures, rules and charge standards
on the utilization of electricity.

    Article 24  Electricity supply enterprises shall, in accordance with
the national or industrial standards of electric power, participate in the
verification of designs of users' electricity receipt and transmission
facilities, conduct supervision over the construction of the covered parts of
users' electricity receipt and transmission facilities and inspect said
facilities after they are completed. Only those having passed the inspection
may be put in operations.

    Article 25  Electricity supply enterprises shall, in accordance with
relevant state regulations, adopt the system of charging electricity fees on
the basis of classification of electricity utilization and division of time
period when electricity is used.

    Article 26  Users shall install metering apparatus on electricity
consumption. The amount of electricity consumed by a user shall be the
amount indicated by such apparatus certified by the metrological inspection
authorities. A metering apparatus shall be installed on the dividing line of
the ownership of the electricity supply facilities and receipt facilities.

    A user shall be responsible for the protection of its electricity
metering apparatus which is installed outside.

    Article 27  Electricity supply enterprises shall compute and collect
electricity fees from users according to the electricity price approved by
the state and the records indicated by the electricity metering apparatus.

    Users shall pay electricity fees according to the price approved by the
state and the specified form and time limits or in a way agreed upon in
contracts.

    Article 28  Except otherwise stipulated in these Regulations, under
normal operation of the electricity generating and supply systems, the
electricity supply enterprise shall supply electricity to users continuingly.
When there is a need to interrupt the supply due to some reasons, the
electricity supply enterprise shall, in accordance with the following
provisions, notify the users or give public notice in advance:

    (1) When there is a need to interrupt the electricity supply due to a
planned check and inspection of the supply facilities, the electricity
supply enterprise shall notify users or give public notice seven days before;

    (2) When there is a need to interrupt the electricity supply due to an
emergency check and inspection of the supply facilities, the electricity
supply enterprise shall notify the major users 24 hours before; and

    (3) When there is a need to interrupt or restrict the electricity supply
due to the breakdown of the generating or supply system, the electricity
supply enterprise shall interrupt or restrict the supply according to the
electricity restriction order which has been determined beforehand. After the
reason causing the interruption or restriction of electricity supply has been
removed, the electricity supply enterprise shall resume the supply as quick
as possible.
Chapter V  Utilization of Electricity

    Article 29  The administrative departments of electric power of people's
governments at county level and above shall make proper planning for the
utilization of electricity in accordance with the state's industrial policies
and on the principles of overall arrangement, guaranteed supply to major
users and supply on the basis of competitive selection.

    Electricity supply enterprises and users shall work out plans for
economizing electricity, spread and employ new technology, materials,
techniques and equipment which can be used for electricity economization and
reduce the electricity consumption.

    Electricity supply enterprises and users shall employ advanced technology
and scientific management measures to ensure the safe supply and utilization
of electricity, avoid accidents and maintain public security.

    Article 30  Users may not commit the following acts that threaten the
safety of electricity supply and utilization and disturb the normal order of
electricity supply and utilization:

    (1) change the category of electricity utilization without authorization;

    (2) without authorization, use electricity beyond the capacity as agreed
upon in the contract;

    (3) without authorization, use electricity beyond the quota allotted by
plan;

    (4) without authorization, use the electric equipment the use of which
has been suspended with certain formalities with the electricity supply
enterprise, or use the electric equipment which has been sealed up by the
electricity supply enterprise;

    (5) without authorization, remove, change or operate the electricity
metering apparatus, load control facilities or supply facilities of the
electricity supply enterprise or the user's electricity receipt equipment
which shall be managed by the electricity supply enterprise as agreed; and

    (6) without the permit of the electricity supply enterprise, take in or
give out electric source or hook up its self-supply electric source with the
network.

    Article 31  It shall be forbidden to steal electricity. The following
acts shall be deemed as stealing electricity:

    (1) without authorization, connect wires with and use electricity from
the supply facilities of the electricity supply enterprise;

    (2) use electricity by evading the electricity metering apparatus of the
electricity supply enterprise;

    (3) use electricity by forging or opening seals on the electricity
metering apparatus put by the metrological inspection authorities or its
authorized organization;

    (4) intentionally damage the electricity metering apparatus of the
electricity supply enterprise;

    (5) intentionally cause the inaccuracy of the electricity metering
apparatus of the electricity supply enterprise or make the apparatus lose
efficiency; and

    (6) steal electricity by other means.
Chapter VI  Electricity Supply and Demand Contracts

    Article 32  The electricity supply enterprise and the user shall, before
the supply of electricity, sign an electricity supply and demand contract
according to the user's demand and the supply ability of the electricity
supply enterprise.

    Article 33  An electricity supply and demand contract shall contain the
following items:

    (1) the form, quality and time of electricity supply;

    (2) the capacity, location and nature of the utilization of electricity;

    (3) the electricity metering and calculation form, the electricity price
and the form of settlement of electricity fees;

    (4) the responsibility for maintaining the electricity supply and
utilization facilities;

    (5) the period of validity of the contract;

    (6) liabilities for breach of contract; and

    (7) other items the two parties consider necessary to contain.

    Article 34  The electricity supply enterprise shall, in accordance with
the quantity, quality, time and form of the electricity supply as agreed upon
in the contract, make rational management and a safe supply of electricity.

    The user shall use electricity in accordance with the quantity and
conditions as agreed upon in the contract and pay electricity fee and other
fees stipulated by the state.

    Article 35  The modification and rescission of an electricity supply and
demand contract shall be handled in accordance with the provisions of
relevant laws, administrative regulations and these Regulations.
Chapter VII  Supervision and Administration

    Article 36  Administrative departments of electric power shall strengthen
the supervision and administration of electricity supply and utilization.
Supervisors and inspectors of electricity supply and utilization must meet
relevant requirements and, when performing their duties, shall produce
relevant certificate.

    The concrete measures for supervision, inspection and administration of
electricity supply and utilization shall be separately formulated by the
administrative department of electric power of the State Council.

    Article 37  Before going on duty, electricians who are to conduct
operations on users' electricity receipt and transmission facilities must
pass the examination by the administrative department of electric power and
obtain an Electrician's License for Operation on Networks issued by the
administrative department of electric power.

    Before applying for a business license to the administrative department
for industry and commerce, units who wish to engage in the installation,
maintenance and test of electricity supply and receipt facilities must pass
the examination by the administrative department of electric power and obtain
a Permit for Engaging in Installation (Maintenance) of Electric Facilities
from the administrative department of electric power.
Chapter IX  Legal Responsibility

    Article 38  Anyone who, in violation of the provisions of these
Regulations, commits any of the following acts shall be ordered to make
correction by the administrative department of electric power with its
illegal income, if any, confiscated and a fine not more than five times the
illegal income may be imposed concurrently:

    (1) engage in electricity supply without obtaining, in accordance with
regulations, the Permit for Electricity Supply;

    (2) supply electricity into a supply area or beyond its own supply area
without authorization; or

    (3) re-supply electricity to others without authorization.

    Article 39  If a user, in violation of the provisions of Article 27 of
these Regulations, fail to pay electricity fee within the time limit, the
electricity supply enterprise may charge, in addition to the electricity fee,
a penalty for breach of contract equivalent to 0.1%-0.3% of the total
electricity fee payable for each day overdue. The exact ratio shall be
stipulated by both parties to the electricity supply and demand in the
contract. If the electricity fee is more than 30 days overdue and it remains
unpaid after pressed, the electricity supply enterprise may cease to supply
electricity according to the procedures stipulated by the state.

    Article 40  If anyone illegally use electricity in violation of the
provisions of Article 30 of these Regulations, the electricity enterprise
may, according to the violation facts and the consequences, demand the
electricity fee and, pursuant to relevant regulations of the administrative
department of electric power of the State Council, charge extra electricity
fees and other fees stipulated by the state. When the circumstances are
serious, the electricity supply enterprise may cease to supply electricity
according to the procedures stipulated by the state.

    Article 41  Anyone who steal electricity in violation of the provisions
of Article 31 of these Regulations shall be ordered to cease the illegal act
by the administrative department of electric power with the electricity fee
demanded and a fine not more than five times the electricity fee payable
imposed. If a crime is constituted, the criminal responsibility shall be
investigated according to law.

    Article 42  The electricity supply enterprise or user which breaches the
electricity supply and demand contract and causes a loss to the other party
shall be liable for it according to law.

    Article 43  The electricity supply enterprise shall be liable, according
to law, for the loss or damage caused to a user or a third party by electric
power operation faults.

    A user or a third party shall be liable, according to law, for the loss
or damage caused by its fault to the electricity supply enterprise or other
users.

    Article 44  If a staff member or worker of the electricity supply
enterprise violates rules and regulations and thus causes a electricity
supply accident, or abuses his or her power or uses his or her power for
personal gains, a disciplinary sanction shall be given or, if a crime is
constituted, the criminal responsibility shall be investigated.
Chapter IX  Supplementary Provisions

    Article 45  These Regulations shall enter into force on September 1, 1996.



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