ELECTRIC POWER LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.60

The Electric Power Law of the People’s Republic of China, adopted at the 17th Meeting of the Standing Committee of the Eighth National
People’s Congress on December 28, 1995, is promulgated now, and shall enter into force as of April 1, 1996.

President of the People’s Republic of China: Jiang Zemin

December 28, 1995

Electric Power Law of the People’s Republic of China ContentsChapter I General Provisions

Chapter II Construction of Electric Power

Chapter III Production of Electric Power and Management of Power Networks

Chapter IV Supply and Utilization of Electric Power

Chapter V Electricity Price and Electricity Fee

Chapter VI Rural Electric Power Construction and Agricultural Use of Electricity

Chapter VII Protection of Electric Facilities

Chapter VIII Supervision and Inspection

Chapter IX Legal Responsibility

Chapter X Supplementary Provisions

Attachment: Related Articles in the Criminal Law

Chapter I General Provisions

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 9

The state encourages the adoption of advanced science and technology and management methods in the construction, production, supply,
and utilization in relation to electric power, and shall give awards to those units and persons that achieve remarkable successes
in such respects as research, development, and adoption of advanced science and technology and management methods.

Chapter II Construction of Electric Power

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 17

Local people’s governments shall give support to electric power enterprises in prospecting water sources, drawing and using water
according to law for the electricity-generating projects. Electric power enterprises shall economize on water.

Chapter III Production of Electric Power and Management of Power Networks

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 23

The measures for the dispatch of electric networks shall be formulated by the State Council in accordance with the provisions in this
Law.

Chapter IV Supply and Utilization of Electric Power

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 34

Power-supplying enterprises and users shall observe the relevant regulations of the state, and adopt effective measures to achieve
the safe, economical, and planned use of electricity.

Chapter V Electricity Price and Electricity Fee

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 45

The State Council shall formulate measures for control of the electricity price in accordance with the provisions of this Law.

Chapter VI Rural Electric Power Construction and Agricultural Use 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 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 51

The State Council shall, in accordance with the provisions in this Law, formulate measures for the management of electricity for agriculture
and rural uses.

Chapter VII Protection of Electric Facilities

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 55

If the construction, reconstruction or expansion of electric facilities interferes with that of public service projects, afforestation
projects, or other projects, the units involved shall negotiate according to relevant regulations of the state and may start the
construction only after an agreement is reached through negotiation.

Chapter VIII Supervision and Inspection

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 shall have the rights to ascertain the implementation
of electric power laws and administrative regulations by electric power enterprises and users, to consult relevant materials, and
to enter into the sites to carry out inspection.

Electric power enterprises and users shall provide all convenience for electric power supervisors and inspectors who are carrying
out their tasks of supervision and inspection.

When carrying out supervision and inspection, electric power supervisors and inspectors shall produce proper identification.

Chapter IX Legal Responsibility

Article 59

The electric power enterprise or user that breaks a contract for the supply and use of electricity and thereby causes a loss to the
other party shall bear compensation liability according to law.

An electric power enterprise which, in violation of the provisions of Article 28 or the first paragraph of Article 29 of this Law,
fails to maintain the quality of electricity or interrupts the electricity supply without prior notice and thereby causes a loss
to the user, shall bear compensation liability according to law.

Article 60

An electric power enterprise which causes damage to the user or a third party due to an electric power operation accident shall bear
compensation liability according to law.

The electric power enterprise is exempt from compensation liability if an electric power operation accident is caused by one of the
following factors:

(1)

force majeure; or

(2)

fault of a user.

If damage to the electric power enterprise or other users is caused by the fault of a user or a third party, the user or the third
party shall bear compensation liability according to law.

Article 61

If anyone, in violation of the provisions of the second paragraph of Article 11 of this Law, illegally occupies the land for current
transformation facilities, the transmission line corridor, or the cable channel, the local people’s government at county level or
above shall order him to make correction within a prescribed time period; if no correction is made within the time period, the obstacles
shall be forcefully obliterated.

Article 62

If, in violation of the provisions of Article 14 of this Law, an electric power construction project is not in conformity to the
electric power development planning and industrial policy, the administrative department of electric power shall order a stop to
the construction of the project.

If, in violation of the provisions of Article 14 of this Law, the electric equipment or technology declared expressly by the state
to be eliminated is used for an electric power construction project, the administrative department of electric power shall order
a stop to the use of such equipment or technology, confiscate the electric equipment declared expressly by the state to be eliminated,
and impose a fine of not more that 50,000 yuan concurrently.

Article 63

If anyone, in violation of the provisions of Article 25 of this Law, engages in electricity supply or changes the electricity service
area without permission, the administrative department of electric power shall order him to make correction, confiscate any illegal
gain, and may concurrently impose a fine of not more than five times the amount of his illegal gains.

Article 64

If anyone, in violation of the provisions of Article 26 or 29 of this Law, refuses to supply electricity or interrupts electricity
supply, the administrative department of electric power shall order him to make correction and issue a warning; if the circumstances
are serious, disciplinary sanction shall be imposed upon the involved person in charge and the persons directly responsible.

Article 65

If anyone, in violation of the provisions of Article 32 of this Law, endangers the safety of electricity supply or electricity use,
or disturbs the order of electricity supply or electricity use, the administrative department of electric power shall order him to
make correction and issue a warning; if the circumstances are serious or in case of refusal to make correction, the administrative
department of electric power may suspend the electricity supply and impose a fine of not more than 50,000 yuan concurrently.

Article 66

If anyone, in violation of the provisions of Article 33 , 43 or 44 of this Law, fails to 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, or sets
the electricity price beyond his authority over electricity price control, or levies surcharges in addition to the electricity price,
the competent administrative department of price shall issue a warning, order the return of any fee or charge collected illegally,
and may concurrently impose a fine of not more than five times the amount of such fee or charge collected illegally; if the circumstances
are serious, disciplinary sanction shall be imposed upon the involved person in charge and the persons directly responsible.

Article 67

If anyone, in violation of the provisions of the second paragraph of Article 49 of this Law, reduces the quotas of electricity for
agriculture or rural uses, the administrative department of electric power shall order him to make correction; if the circumstances
are serious, disciplinary sanction shall be imposed upon the involved person in charge and the persons directly responsible; in case
of a loss caused thereby, the offender shall be ordered to make compensation.

Article 68

If anyone, in violation

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