ELECTRIC POWER LAW

    Article 1  This Law is formulated for the purposes of guaranteeing and
promoting the development of the electric power industry, safeguarding the
legitimate rights and interests of investors, operators and users of electric
power and guaranteeing the safe operation of electric power.

    Article 2  This Law applies to the construction, production, supply, and
utilization in relation to electric power within the territory of the People’s
Republic of China.

    Article 3  The electric power industry shall satisfy the needs of the
national economy and social development, and shall develop slightly ahead of
the actual needs. The state encourages and guides economic organizations or
individuals from home or abroad to invest according to law in the development
of electric sources and the establishment of power-producing enterprises.

    The investment in the electric power industry shall be in conformity to
the principle of “whoever invests will benefit therefrom”.

    Article 4  Electric facilities shall be under the protection of the state.

    Any unit or person shall be forbidden to endanger the electric facilities
or illegally appropriate or use electric energy.

    Article 5  The construction, production, supply, and utilization in
relation to electric power shall abide by the principles of protecting the
environment according to law, adopting new technology, decreasing the
discharge of harmful substances, and preventing pollution and other public
hazards.

    The state encourages and supports the use of renewable and clean energy
resources for electricity generation.

    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 in the whole country. The departments concerned under the State
Council shall be responsible for the supervision and control of the electric
power industry within their own limits of authorities.

    The competent comprehensive administrative department of economy under the
local people’s government at county level or above is the administrative
department of electric power within its own administrative region, and shall
be responsible for the supervision and control of the electric power industry.
The departments concerned under the local people’s government at county level
or above shall be responsible for the supervision and control of electric
power industry within their own limits of authorities.

    Article 7  Enterprises engaged in the electric power construction,
electric power production or electric network operation shall operate
independently and be responsible for their own profits and losses according to
law, and shall subject themselves to the supervision of the administrative
departments of electric power.

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

    Article 10  The planning for electric power development shall be drawn up
according to the requirements of the national economy and social development,
and shall be incorporated into the national economic and social development
plan.

    The planning for electric power development shall reflect the principles
of rational use of energy resources, coordinated development of electric
sources and electric networks, improvement of economic results, and being
conducive to environmental protection.

    Article 11  The planning for the construction and rebuilding of urban
electric networks shall be incorporated into the overall urban planning.
People’s governments of cities shall, in accordance with the planning, arrange
the land for current transformation facilities, transmission line corridors,
and electric cable channels.

    No unit or person may illegally occupy the land for current transformation
facilities, transmission line corridors, or electric cable channels.

    Article 12  The state supports and promotes electric power construction by
formulating relevant policies.

    Local people’s governments shall, in accordance with the planning for
electric power development and in the light of their local conditions, take
various measures to develop electric sources and promote electric power
construction.

    Article 13  Investors in the electric power shall enjoy statutory rights
and interests on electric power produced from their investment. Where the
electric power thus produced is hooked up with the electric network, the
investor shall have the priority in utilization; where a self-supply power
plant is not hooked up with the electric network, the investor shall have the
authority over its control and use on his own.

    Article 14  An electric power construction project shall be in conformity
to the planning for electric power development as well as the state policy on
the electric power industry.

    No electric equipment or technology declared expressly by the state to be
eliminated may be used for any electric power construction project.

    Article 15  Such auxiliary projects for electric networks as transmission
and transformation projects, automatic dispatch and communication projects, as
well as environmental protection projects shall be designed, constructed,
checked and accepted, and put into operation together with the
electricity-generating projects.

    Article 16  The use of land for electric power construction projects shall
be handled in accordance with relevant laws and administrative regulations.
Where the land is requisitioned according to law, land compensation and
settlement subsidies shall be paid therefor according to law, and the
residents concerned shall be well relocated and resettled.

    Electric power construction shall be in conformity to the principles of
giving practical protection to cultivated land and economizing on land.

    Local people’s governments shall give support and assistance to the
electric power industry in using land and relocating the residents concerned
according to law.

    Article 18  The production of electric power and the operation of electric
networks shall be in conformity to the principles of safety, high quality, and
economy.

    The operation of electric networks shall be maintained in a continuous and
stable way, and shall guarantee the reliability of electricity supply.

    Article 19  Electric power enterprises shall strengthen the management of
safe production, adhere to the policy of safety first and prevention foremost,
and institute and amplify the responsibility system of safe production.

    Electric power enterprises shall regularly examine and maintain their
electric facilities in order to guarantee their normal operation.

    Article 20  Enterprises engaged in the supply or transportation of
electricity-generating fuels and power-producing enterprises shall supply,
transport, and unload and take delivery of such fuels in accordance with the
relevant regulations of the State Council or as agreed upon in their contracts.

    Article 21  Centralized dispatch and level-by-level management shall be
implemented in the operation of electric networks. No unit or person may
illegally intervene in the dispatch of electric networks.

    Article 22  The state encourages the hookup between power-producing
enterprises and electric networks and among electric networks. Where a
power-producing enterprise qualified as an independent legal person requests
for the hookup of electric power it has produced with an electric network, the
electric network operating enterprise shall accept it.

    The hookup shall be in conformity to the national or industrial standards
of electric power.

    Both parties to the hookup shall sign a hookup agreement to stipulate for
the rights and obligations of each party under the principles of centralized
dispatch, level-by-level management, equality, mutual benefit, and achieving
agreement through consultation; where the two parties fail to reach such an
agreement, the administrative department of electric power at provincial level
or above shall coordinate and make a decision.

    Article 24  The state carries out the principle of safety, economy, and
planning in the supply and utilization of electric power.

    The measures for the supply and utilization of electric power shall be
formulated by the State Council in accordance with the provisions in this Law.

    Article 25  Power-supplying enterprises shall supply electricity to the
users within their approved service areas.

    The division of electricity service areas shall take into account such
factors as the structure of electric networks and the rationality of the
electricity supply. Only one power-supplying institution may be established in
each of electricity service areas.

    An application for the establishment or alteration of an electricity
service area within a province, autonomous region or municipality directly
under the central government shall be made by the power-supplying enterprise,
and be examined by the administrative department of electric power under the
people’s government of the province, autonomous region, or municipality
directly under the central government in consultation with relevant
departments concerned at the same level. Upon examination and approval, the
said administrative department of electric power shall issue an Electricity
Supply Permit thereto. The establishment or alteration of an electricity
service area involving two or more provinces, autonomous regions and
municipalities directly under the central government shall be examined by the
administrative department of electric power under the State Council, which,
upon examination and approval, shall issue an Electricity Supply Permit
thereto. The power-supplying institution shall, on the strength of the
Electricity Supply Permit, apply to the administrative department for industry
and commerce for the business licence before it may start operation.

    Article 26  The power-supplying institution of an electricity service area
shall be obligated to supply electricity, according to the regulations of the
state, to the users within its service area, and may not, in violation of the
regulations of the state, refuse to supply electricity to any unit or person
applying for electricity within its service area.

    Applications for new use, temporary use, increases in electricity
capacity, and alteration and termination of electricity use shall be required
to go through stipulated procedures.

    Power-supplying enterprises shall, at their places of business, promulgate
procedures, rules and charge standards for electricity use, and shall provide
the users with any other necessary information.

    Article 27  The supplier and user of electric power shall sign a contract
for the supply and use of electricity to stipulate for the rights and
obligations of each party under the principles of equality, voluntariness and
achieving agreement through consultation and in accordance with the measures
for the supply and use of electricity formulated by the State Council.

    Article 28  Power-supplying enterprises shall guarantee that the quality
of electricity supplied to the users is in conformity with the national
standards. Problems of electricity quality caused by public facilities of
electricity supply shall be solved promptly.

    If the user has special requirement of the electricity quality, the
power-supplying enterprise shall, according to its necessity and the
possibility of the electric network, supply electricity correspondingly.

    Article 29  Power-supplying enterprises shall supply electricity
continuously without shut-off if the electricity generating and supply systems
function normally. In the event of shut-off due to such reasons as checking
and repairing the electricity supply facilities, restricting consumption of
electricity according to law, and illegal use of electricity by the user, the
power-supplying enterprise shall notify users in advance according to relevant
regulations of the state.

    Any user having disagreements with a power shut-off by a power-supplying
enterprise may file a complaint to the administrative department of electric
power; the administrative department of electric power accepting the filing of
a complaint shall handle it according to law.

    Article 30  In the event of emergency electricity supplies for rescue and
relief work, the power-supplying enterprise shall arrange the electricity
supplies with all possible speed. The expenses for electricity supply
engineering and the electricity fees payable shall be handled according to the
relevant regulations of the state.

    Article 31  Any user shall install metering apparatus on electricity use.
The quantity of electricity consumed by the user shall be calculated according
to the records of the apparatus certified by the metrological inspection
agency according to law.

    The designing, construction, installation, and operation management of
electricity receiving apparatus of the user shall be in conformity with
national or industrial standards of electric power.

    Article 32  Any user shall be forbidden to endanger the safety or disturb
the order of electricity supply and consumption.

    Power-supplying enterprises shall have the authority to stop anyone from
endangering the safety or disturbing the order of electricity supply and
consumption.

    Article 33  Power-supplying enterprises shall calculate and collect the
electricity fees from users according to the electricity price approved by the
state and the records of the electricity metering apparatus.

    Safety inspectors, meter-readers, and fee collectors of power-supplying
enterprises shall present proper identifications when entering into the houses
of users to conduct safety inspections, read the meters, or collect fees.

    Users shall pay electricity fees on time according to the electricity
price approved by the state and the records of electricity metering apparatus,
and shall provide convenience to the safety inspectors, meter-readers, and fee
collectors of power-supplying enterprises in fulfilling their duties according
to law.

    Article 35  The “electricity price” mentioned in this Law refers to the
price of electricity hooked up with the electric network by the
power-producing enterprises, the inter-supply electricity price among electric
networks, and the sale price of electricity of the electric network.

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

    Article 36  The formulation of electricity price shall be based on the
principles of reasonable compensation for the costs, reasonably setting
profits, counting taxes according to law, fairly shared burdens, and promotion
of electric power construction.

    Article 37  The price of electricity hooked up with the electric network
shall follow the principle of equal price and equal quality for electricity
on the same electric network. The specific measures and implementation
procedures shall be provided by the State Council.

    For those power-producing enterprises with special situations, the State
Council shall provide specific measures for the formulation of a separate
price of electricity for hookup with the electric network.

    Article 38  The price of electricity hooked up with the electric network
involving two or more provinces, autonomous regions, or municipalities
directly under the central government, as well as at provincial level, shall
be proposed through consultation by the power-producing enterprise and the
electric network operating enterprise, and be reported to the administrative
department of price under the State Council for approval.

    The price of electricity hooked up with the independent electric network
shall be proposed through consultation by the power-producing enterprise and
the electric network operating enterprise, and be reported to the
authoritative price administrative department for approval.

    The price of electricity produced by locally funded power-producing
enterprises, if forming an independent electric network within the regions of
the province or being generated for self-use, may be controlled by the
people’s government of the province, autonomous region or municipality
directly under the central government.

    Article 39  The price of inter-supply electricity between the electric
network involving two or more provinces, autonomous regions, or municipalities
directly under the central government and the independent electric network, or
between the electric network at provincial level and the independent electric
network, shall be proposed through consultation by the two parties, and be
reported to the administrative department of price under the State Council or
its authorized department for approval.

    The price of inter-supply electricity among independent electric networks
shall be proposed through consultation by the two parties and be reported to
the authoritative price administrative department for approval.

    Article 40  The sale price of electricity of electric networks involving
two or more provinces, autonomous regions, or municipalities directly under
the central government as well as at provincial level, shall be proposed by
the electric network operating enterprise and be reported to the
administrative department of price under the State Council or its authorized
department for approval.

    The sale price of electricity of the independent power networks shall be
proposed by the electric network operating enterprise and be reported to the
authoritative price administrative department for approval.

    Article 41  The state adopts two systems of electricity price according to
the classifications of electricity utilization and divisions of the time
period that the electricity is in use. The classification standard and the
method for division of the time period shall be stipulated by the State
Council.

    Within the same electric network, the standard for electricity price shall
be the same to users of electricity at the same voltage level and in the same
classification of utilization.

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

    Article 43  No unit may set the electricity price beyond its authority
over electricity price control. No power-supplying enterprise may change the
electricity price without authorization.

    Article 44  Any unit or person is forbidden to levy surcharges in addition
to the electricity price; however, if otherwise provided in laws and
administrative regulations, such provisions shall apply.

    For surcharges in addition to the electricity price on electricity
produced by locally funded power enterprises, the people’s governments of the
provinces, autonomous regions, or municipalities directly under the central
government shall formulate measures therefor in accordance with the relevant
regulations of the State Council.

    Any power-supplying enterprise is forbidden to collect surcharges in
addition to the electricity price on other’s behalf.

    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 incorporate
such planning into the planning for their respective local electric power
development and the planning for the national economic and social development.

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

    Article 48  The state advocates the development of hydroelectric resources
in rural areas and the construction of medium- and small-sized hydropower
stations to promote rural electrification.

    The state encourages and supports the rural electric power source
construction through the utilization of solar energy, wind energy, geothermal
energy, biomass energy and other energy resources to increase the rural
electricity supply.

    Article 49  The local people’s governments at county level or above and
their competent comprehensive economic departments, when distributing
electricity quotas, shall guarantee a proper proportion of electricity for
agriculture and rural uses, and give priority to the electricity for rural
floodwater drainage, combat of drought and seasonal agricultural production.

    Electric power enterprises shall comply with the arrangements of
electricity as set forth in the preceding paragraph, and may not reduce the
quotas of electricity for agriculture and rural uses.

    Article 50  The price of electricity for agriculture shall be set under
the principles of “breaking even” and “marginal profit”.

    The price of electricity for peasants’ household shall be gradually
unified with that for the local urban residents household.

    Article 52  No unit or person may damage electricity-generating, current
transformation and electric power line facilities, or other relevant auxiliary
facilities.

    If any explosion or other operation that might endanger the safety of
electric facilities is to be conducted in the surrounding area of electric
facilities, approval shall be obtained and measures for ensuring the safety of
electric facilities shall be taken in accordance with the regulations of the
State Council concerning the protection of electric facilities before such an
operation may be started.

    Article 53  The administrative departments of electric power shall, in
accordance with the regulations of the State Council concerning the protection
of electric facilities, set up signs in the protective zones of electric
facilities.

    Within the protective zones of electric facilities demarcated according to
law, no unit or person may erect buildings or other constructions, plant
vegetation, or stockpile articles and objects, which might endanger the safety
of electric facilities.

    Vegetation already planted before the demarcation of the protective zone
of electric facilities according to law shall be trimmed or chopped if such
vegetation imperils the safety of electric facilities.

    Article 54  Any unit or person that needs to carry out an operation within
the protective zone of electric facilities demarcated according to law, which
might endanger the safety of electric facilities, shall obtain approval from
the administrative department of electric power and shall take safety measures
before such an operation may be started.

    Article 56  The administrative departments of electric power shall,
according to law, supervise and inspect the implementation of electric power
laws and administrative regulations by electric power enterprises and users.

    Article 57  The administrative departments of electric power may have
electric power supervisors and inspectors if required in the work.

    Electric power supervisors and inspectors shall be fair and honest,
enforce laws impartially, be familiar with electric power laws and
administrative regulations, and be versed in related professional electrical
power skills.

    Article 58  When carrying out supervision and inspection, electric power
supervisors and inspectors sha