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The Electricity Act

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Chapter I General Provisions

Article 1

This Act is enacted for the purpose of developing electric power, regulating electricity supply, promoting the electricity enterprises, maintaining reasonable electricity prices, and enhancing public well-being of the country.

Article 2

The term “electricity enterprises” as specified in this Act refers to business operators involved in electricity supply for general use.

Article 3

The term “electricity business right” as specified in this Act refers to the right to exclusive operation of the business of electricity within a specified region and pursuant to the approval of the central competent authority.

Article 4

The term “operation region” as specified in this Act refers to the region of electric power supply by the electricity enterprises having acquired the electricity business right in accordance with the provisions under the preceding article.

Article 5

The competent authorities referred to in this Act are the Ministry of Economic Affairs, at the central level, and the Municipal Governments or the County (City) Government, at the local level.

Article 6

The following terms as used in this Act shall have the meaning given herein:
Electricity facilities: Refers to all facilities applied for electric power generation, transmission, and distribution.
Major power generation facilities: Refers to energy devices such as prime movers and power generators.
Central power station: Refers to high-efficiency power station as defined by the central competent authority.
Power grid: Refers to electricity transmission lines used to provide and distribute electricity through centralized coordination for the majority of the electricity enterprises within the operation region.

Article 7

Electricity enterprises are divided into the following types:
1. Government-owned enterprises: State-owned, municipality-owned, county (city)-owned, Hsiang (township, city)-owned.
2. Privately-owned enterprises: Invested and operated by the private sector.
For government-private sector joint ownership, where the government investment exceeds fifty percent (50%), the enterprise is deemed government-owned. The same shall apply to joint ownership by re-investment of a government-owned institution whose capital investment exceeds fifty percent (50%).

Article 8

All hydropower generations with the capacity exceeding twenty megawatts (20 MW) are government-owned, with the only exception where the special permit has been granted by the central competent authority.

Article 9

The operation modes of electricity enterprises are divided into the following types:
1. Electricity enterprises’ whole or part of electricity generated is provided for general use within the operation region or is resold to other electricity enterprises.
2. Electricity enterprises procure electricity completely from other electricity enterprises for use in general power supply within the operation region or for resale to other electricity enterprises.
3. Power grid operators procure the surplus electricity from and sell electricity in demand to other electricity enterprises as a whole within its granted operation region.
4. Central power station operators wholesale electricity generated to other electricity enterprises.

Article 10

In addition to small electricity enterprises, electricity enterprises are divided into the following levels:
1. Business with an electricity capacity exceeding one hundred megawatts (100 MW) is Level 1 Business.
2. Business with an electricity capacity more than twenty megawatts (20 MW) but less than one hundred megawatts (100 MW) is Level 2 Business.
3. Business with an electricity capacity more than five megawatts (5 MW) but less than twenty megawatts (20 MW) is Level 3 Business.
4. Business with an electricity capacity more than point five megawatts (0.5 MW) but less than five megawatts (5 MW) is Level 4 Business.
The aforesaid electricity capacity in the preceding paragraph shall includes electricity both generated and procured.

Article 11

In the event that the electricity capacity exceeds or falls short of the limits of a level to which the electricity enterprise currently belongs, said business shall report the capacity change to the central competent authority for approval for an upgrade or a downgrade.

Article 12

The electricity enterprises making the relevant application or report to the competent authority shall comply with the following procedure:
1. Applications and reports by Hsiang (township, city)-owned or privately-owned electricity enterprises shall be submitted to the local competent authority, who shall then forward said documents to the central competent authority for approval.
2. Applications and reports by government-owned, municipality-owned, and county (city)-owned electricity enterprises shall be submitted to the competent authorities that have jurisdiction over the business, said competent authority shall then forward the documents to the central competent authority and distribute copies of said documents to relevant local competent authority.
3. Applications and reports by electricity enterprises whose operation region expands across several administrative districts shall be submitted according to the nature of the documents and pursuant to the following provisions: Where the whole operation region is involved, the documents shall be submitted to the local competent authority who has the jurisdiction over the major operation region of the concerning industry and shall be then forwarded to the central competent authority; where only one administrative district is involved, the document shall be submitted to the local competent authority who has the jurisdiction over the concerning district and shall be then forwarded to the central competent authority with copies simultaneously distributed to various local competent authorities concerned.
The aforesaid applications or reports may be directly submitted to the central competent authority where the circumstances warrant it.

Article 13

Electricity enterprises shall set up a directorial engineer position that meets the qualifications specified by the central competent authority.

Article 14

Unless the competent authority has granted the approval, electricity enterprises shall not engage in other businesses.
Where the enterprise is engaged concurrently in electricity and other businesses, said enterprise shall establish separate accounting records for the electricity business.
The central competent authority will stipulate the accounting titles and the depreciation rates for fixed assets thereof for electricity business.

Article 15

The term “responsible person” of an electricity enterprise as specified in this Act refers to the following persons: For government-owned electricity enterprise, the regulations of in-charge authority of the business in which the relevant enterprise is engaged and the organizational regulations of the enterprise itself shall govern. For privately-owned electricity enterprise, where the relevant enterprise is a corporate entity, the Company Act shall govern; where the relevant enterprise is a partnership, the executive partners shall be the responsible person; where the relevant enterprise is a solely-owned enterprise, the investor shall be the responsible person.
The managers, directorial engineers, and other supervisory posts under different job titles who take charge of the whole or a part of business affairs of an electricity enterprise shall be deemed the responsible persons of the electricity enterprise within their respective scopes of responsibility and authority.

Article 16

In the event that the responsible person of an electricity enterprise is in violation of the Act with the handling of the electricity business, which has caused damage to others, the responsible person shall bear joint and several liabilities with the electricity enterprise concerned for the compensation to the party suffering said damage.

Chapter II Electricity Business Right

Article 17

Electricity enterprise operation region shall comply with the operation zone map approved by the central competent authority and affixed with the official seal thereof and shall not be altered by discretion.The operation region map of electricity enterprise shall be posted inside the business office.

Article 18

For business operation applications, relevant electricity enterprisesshall submit the following blueprints or documents to the central competent authority for approval and recordation:
1. Purpose of electricity supply.
2. Map of electricity supply region.
3. Facility plan.
4. Financial and budget estimations.
Prior to the construction of the electricity supply facility, relevant electricity enterprise shall submit an application for work permit and shall not commence construction until said permit has been granted. Upon completion of the construction, relevant operator shall submit complete facility drawings for registration. Electricity enterprises may not commence operation until the facility has passed inspection and the electricity license as well as the operation region map has been issued, and the electricity business right has been granted.
Where the electricity enterprise has made the recordation pursuant to the first paragraph but has failed to commence construction preparation within six months, unless with proper reasons and where extension has been filed and approved, the application record may be revoked.

Article 19

Where the operation covers two regions or more, the application set forth under the preceding article shall be filed separately.

Article 20

In the event that two or more electricity enterprises have filed an application for operation in the same region, the approval shall be granted to the application that arrives first. Where the applications are made on the same day, the approval shall be granted to the application that has better planning. Where the plans are the same, the competent authority shall specify a time period for the applicants to negotiate between themselves and to re-submit the application. In the event that the two applicants have failed to reach an agreement or to observe the agreed terms and conditions, the competent authority shall call in the applicants and decide by lot drawing.

Article 21

Unless under special permit by the central competent authority, the operation region of municipality-owned, county (city)-owned, and Hsiang (township, city)-owned electricity enterprises shall not exceed their respective administrative district.

Article 22

The communication lines and power grid transmission lines of electricity enterprise approved by the central competent authority may pass through the operation regions of other electricity enterprisesbut shall not infringe upon the electricity business rights of said industries.

Article 23

Electricity enterprises shall not supply electricity outside its approved operation region with the exception of the following:
1. Providing electricity to another electricity enterprise with a prior approval of the local or central competent authority.
2. Providing electricity to major national defense related industries or electric cars or electric rail systems under special designation by the central competent authority. However, said provision of electricity shall be limited to cases where the cost of electricity supply of said business itself exceeds that of the designated electricity enterprise.
3. Providing electricity to a small number of users outside the operation region where no other electricity enterprises currently provide electricity to, and with the approval of the local or central competent authority for temporary power supply.

Article 24

The effective period of electricity business right is thirty years for Level 1 and Level 2 Operators, twenty-five years for Level 3 Operators, and twenty years for Level 4 Operators. Relevant operators may file for an extension with the central competent authority one year prior to the expiry of the effective term. Said extension period shall be limited to ten years for each application. For business discontinuation, the relevant electricity enterprise shall report to the central competent authority one year prior to the expiry of the effective term.

Article 25

In the event of a change with existing operation region, the relevant electricity enterprise shall submit the approved operation region map with the new boundary lines marked, the work method, and a detailed map of the transmission and distribution line routes with the planned construction commencement and completion dates specified to the central competent authority for approval.
In the event of failure to commence construction within six months of approval with no proper reasons, said approval may be revoked.

Article 26

For land sections within the approved operation region for which power distribution lines are not placed within three years, the central or local competent authority may specify a time period for placement of said power lines. In the event that the electricity enterprise has failed to place the power lines within the specified time limit without proper reasons, the central competent authority may reduce the operation region of said operator.

Article 27

In the event of change with the major items specified on the electricity enterprise license, the relevant industry shall apply for a replacement of license with the central competent authority within fifteen days of change.

Article 28

For transfer of electricity business right to others, a joint signature of all parties concerned along with the contract shall be submitted to the central competent authority within fifteen days of transfer for approval and replacement of electricity business license.

Article 29

For mergence with other electricity enterprises, a joint signature of all parties concerned along with the contract, mergence plan, and the electricity business license nullified due to said mergence shall be submitted to the central competent authority within fifteen days of emergence for approval and replacement of electricity business license.

Article 30

Unless and until approved by the central competent authority, electricity enterprises shall not discontinue their business.
Where the business discontinuation has been approved, relevant electricity enterprise shall submit the operation region map and the business license to the central competent authority for cancellation within fifteen days of approval.

Article 31

For the period after business discontinuation has been approved pursuant to the preceding paragraph and before electricity business right has been granted to a new electricity enterprise, the local government at the place of said electricity enterprise may continue to supply electricity within the region using the original industry’s equipment for maintaining of public utility, provided that a reasonable rent is paid to the original industry.

Article 32

Under one of the following circumstances, the central competent authority or the local competent authority, after reporting to the central competent authority and having been granted approval, may revoke the electricity business right of the relevant electricity enterprise. The local government or private sector at the place of said industry may raise the needed funds to purchase the electricity equipment of the original electricity enterprise for continued operation:
1. Where the business operation term has expired and no extension application has been filed pursuant to Article 24.
2. Where the electricity supply has been suspended for more than three months due to force majeure.
3. Where the electricity enterprise has failed to perform his electricity supply obligations within the operation region for reasons other than particular obstacles.
4. Where the electricity enterprise is in violation of the Act and has failed to make rectification with the time period specified by the central or local competent authority.

Article 33

The governing rules for the applications and registrations and the required formats for the blueprints, maps, and relevant documents set forth under various articles of this chapter shall be provided by the central competent authority.

Chapter III Construction

Article 34

Electricity equipment shall be standardized whenever possible, and the methods, specifications, and the installation rules thereof shall be provided by the central competent authority.

Article 34-1

The tasks of design and installation supervision of electricity facilities and user’ s electricity devices that fall within the scope defined by the central competent authority shall be administered by legally registered and practicing professional electrical engineers or related professional engineers. The tasks outside the said scope shall be administered by professional electrical engineers or electric appliance installers. However, the said tasks for the exclusive use by government agency or state-owned enterprises may be administered by the employees of the respective government agency or state-owned enterprises who have legally obtained certification as professional electrical engineers or relevant professional engineers.
The task scope of customer’s electricity devices in the preceding Paragraph shall adopt the task scope already exists prior to the promulgation of amendment of this Act made on December 24, 2004. As amending the said scope, the central competent authority shall consult with professional electrical engineer association, electric appliance installer association and other related associations.
The competent authority shall forbid the electricity enterprise who failing to comply with Paragraph 1 to use the electricity facilities. The electricity enterprise shall suspend power supply to the customer who failing to comply with Paragraph 1.

Article 35

The standard for the voltage of electricity supply and the frequency of the alternating current (AC) shall be specified by the central competent authority.

Article 36

The fluctuation rate of the voltage of electricity supply in principle shall not exceed the following percentages:
1. For lighting devices, the voltage fluctuation shall be limited to plus and minus five per cent (+/-5%) relative to the specified voltage.
2. For energy and heat supply, the voltage fluctuation shall be limited to plus and minus ten per cent (+/-10%) relative to the specified voltage. Where the lighting devices, energy and heat supplies share the same electricity line, the standard for lighting device voltage shall prevail.

Article 37

The fluctuation of AC frequency for electricity supply shall be limited to plus and minus four per cent (+/-4%) relative to the standard frequency.

Article 38

Electricity enterprises shall provide three-phase AC electricity according to the voltage and frequency standard specified with the exception of special circumstances under permission of the central competent authority.

Article 39

Electricity enterprises shall maintain an appropriate level of electricity reserve as a preventive measure in case of a failure in power supply.

Article 40

Electricity enterprises shall install necessary electric meters or similar instruments for recording of the kilowatt-hour (kWh) of the electricity generated and procured, electricity voltage and frequency, and the fluctuation of electricity load.

Article 41

Electricity enterprises shall install security equipment in places where it is necessary.

Article 42

Electricity enterprises shall inspect the machines and power lines and record the inspection results at least once a year.

Article 43

The installation of user electricity devices by electricity enterprises shall comply with relevant regulations provided by the central competent authority and electricity supply may only be connected after said devices have passed inspection. For electricity equipment already installed by the user, inspection shall be carried out with the result thereof recorded at least once every three years. In the event that non-conformity is found, a time period shall be specified for the user to make rectification.
For said inspection, the local competent authority shall provide assistance where necessary.

Article 44

The governing rules for user premise power line placement and user electric meter checking shall be provided by the central competent authority.

Article 45

In the event of a fire or other extraordinary disaster in the proximity of power lines, relevant electricity enterprise shall immediately send technicians to set up high-visibility signs or marks for protection and may cut down all or part of the electricity supply or remove dangerous power lines.

Article 46

Electricity enterprise workers and furnishing equipment electricians shall practice first-aid skills for electric shocks.

Article 47

In the event of an electric shock or an accident with electricity equipment which has resulted in casualties, the relevant electricity enterprise shall report to the local competent authority at the place of incident.

Article 48

Electricity enterprises may install telephone or telecommunication signal control equipment, carrier equipment, power grid and central power plant at their own discretion. Level 1 and Level 2 Operators may, with a prior approval of the Ministry of Transportation and Communications, install radio equipment, which however shall be limited to electricity regulation and safety protection purposes only.

Article 49

The governing rules for the crossing and paralleling of electricity enterprise power lines and telecommunication lines shall be provided by the central competent authority in association with the Ministry of Transportation and Communications.

Article 50

Where necessary for construction, electricity enterprises may use rivers, ditches, bridges, embankments, roads, public woodlands, and other public lands, provided that the original function of said property is not affected and that a prior notice to the competent authority of said property has been made.

Article 51

Where necessary, electricity enterprises may place power lines under ground, under water, through private woodlands and spaces over others’ residences, or on vacant land without buildings, provided that the power line placement does not affect the original use and safety of the property being used and that a written notice has been made to the owner or occupant thereof. In the event that the owner or occupant raises an objection, the relevant electricity enterprise may apply for a permit with the local government and proceed with construction, but shall still notify the owner or occupant in writing five days prior to the commencement of construction.

Article 52

Trees obstructing the placement of power lines may be felled or trimmed by the relevant electricity enterprise provided that the owner or occupant has been notified in advance.

Article 53

For matters specified under the three preceding articles, the relevant electricity enterprise shall use places or adopt measures that cause no or the least damage. In the event of damage, compensation commensurate with the severity of the damage shall be made.

Article 54

In the event that owners or occupants of lands on which power supply lines have already been installed are in need of land use change, a written application for power line transfer with reasons specified may be filed with the electricity enterprise. The electricity enterprise shall proceed with the transfer once the application has been proved factual. Relevant rules for the sharing of the required labor and material costs for said transfer shall be provided by the central competent authority.

Article 55

For matters specified under Article 50 to Article 52, relevant electricity enterprises may proceed with the handling first for avoidance of particular danger or prevention of extraordinary disasters, but shall still report the local government at the place of handling and notify the owner or the occupant within three days.

Article 56

For disputes with the owner or occupant over matters specified under Article 51 to Article 55, relevant electricity enterprise may file an application with the local government for settlement.
The governing rules for the method, time period, and negotiation of disputes over electricity enterprise land use shall be provided by the central competent authority.

Chapter IV Operation

Article 57

Electricity enterprises shall not reject any electricity supply request within the operation region unless with proper reasons.

Article 58

Electricity enterprises shall begin power supply within the time period specified below of the beginning of business preparation according to their respective operation level:
Level 1 and Level 2: Three years.
Level 3 and Level 4: Two years.
In the event that the electricity supply cannot begin according to the time period specified in the preceding paragraph due to particular obstacles, the relevant electricity enterprise shall submit an application with details and reasons provided to the central competent authority for an extension.

Article 59

Electricity enterprises shall submit newly formulated and revised operation regulations, electricity prices, and the rates of various charges to the local competent authority or the in-charge authority of the business that said industry is engaged in for comments and suggestions before forwarding the documents to the central competent authority for approval. The approved documents shall be posted for the local public.
The electricity rate charging standards of government-owned electricity enterprises shall comply with the provisions set forth under Article 20 of the Regulation on the Management of Government-Owned Business Enterprises.

Article 60

Electricity prices shall be set at a level commensurate with the necessary cost plus a reasonable profit.
Said reasonable profit shall be calculated on the basis of the present value of the replacement cost for the fixed assets in effective use and the amount of working capital, and shall take into account the local practices of margin setting.

Article 61

Electricity enterprises may set up a different charging scheme for special users after having reported to the local competent authority for recordation.

Article 62

Unless otherwise a flat rate has been agreed upon, electricity enterprises collecting electricity fee from users shall install electric meters and calculate the fee with the kilowatt-hour readings gauged by the meters.
The said charging scheme per kilowatt-hour shall be submitted to the central competent authority for approval.

Article 63

Electricity enterprises may collect a guarantee payment or an alternative rental payment for the electric meters it installs for users as the said meter is provided by the enterprise. The said guarantee or the total amount of the said rental payment shall not exceed the market price at the time of installation of the said meter.

Article 64

Electricity enterprises may set a base consumption at kilowatt-hour (kWh) per month for their electricity charging scheme. However, the said monthly base consumption shall not exceed the limits set forth below:
1. Lighting devices: Where a single-phase electric meter is used, the rate shall be set at the highest two kilowatt-hour (2 kWh) per amp for Level 1 and Level 2 Operators, three kilowatt-hour (3 kWh) per amp for Level 3 Operators, and four kilowatt-hour (4 kWh) per amp for Level 4 Operators. Where a three-phase electric meter is used, the rate shall be set at the highest triple that of a single-phase electric meter. Where the electric meter is less than three amps, the relevant electricity enterprise may raise the base rate if deemed appropriate.
2. Energy supply: The rate shall be set at the highest twenty-five horsepower kilowatt-hour (25 horsepower kWh) per meter installed outdoors for Level 1 and Level 2 Operators, thirty-five horsepower kilowatt-hour (35 horsepower kWh) per meter installed outdoors for Level 3 Operators, and forty-five horsepower kilowatt-hour (45 horsepower kWh) per meter installed outdoors for Level 4 Operators.
3. Heat supply: For industrial use, the provisions on energy supply shall apply mutatis mutandis; for domestic use, the provisions on lighting devices shall apply mutatis mutandis.
Electricity enterprises charging electricity fees without setting a base consumption may set a minimum fee per month.
Where a monthly base consumption is applied by electricity enterprises and the actual consumption exceeds the said monthly base consumption, the fee shall be charged according to the actual consumption.

Article 65

Electricity enterprises shall provide electricity to public utilities, such as tap water companies, electric cars, and electric rail systems, public and private schools of all levels, sheltered workshops, legally registered social welfare institutions, and nursing home with a preferred scheme lower than the regular charging scheme but not lower than the electricity supply cost.
Rules for the preferred scheme in the preceding paragraph shall be provided by the central competent authority.
Sheltered workshops, legally registered social welfare foundations, and nursing home in the first paragraph shall be recognized by the central industry competent authority.

Article 65-1

Electricity enterprises providing electricity to household with the disabled using living maintenances and auxiliary appliances shall charge the lowest price either on the basis of the first block of Inclining Block Rate for non-commercial use; or on the basis of the electricity supply cost.
The recognized qualification of household with the disabled, the scope and the fee calculation pattern of subsistence equipment and necessary living aids in the preceding paragraph shall be provided by the central competent authority in coordination with the central industry competent authority.

Article 66

Electricity enterprises providing electricity to public lamp posts shall set a rate lower than the regular rate. In principle however, said rate shall not be lower than half of the regular lighting device rate.

Article 67

For the small number of remote users for whom electricity supply requires placement of separate power lines, relevant electricity enterprise may charge a premium for line placement and maintenance, of which the charging standard and fee collection method shall be formulated by the electricity enterprise and submitted to the central competent authority for approval.

Article 68

For electricity supply to remote users, relevant electricity enterprise may raise the electricity rate and the base kilowatt-hour consumption, and shall specify the electricity charging standard in the operation regulations.

Article 69

For users whose power factor (PF) is lower than eighty per cent (80%), the electricity enterprise may raise the electricity rate and may make the user to pay for the installation of the PF meter, and shall specify the electricity charging standard in the operation regulations.

Article 70

The daily electricity supply hours shall be set according to the level of the relevant electricity enterprise, but shall not be shorter than the hours listed below and the power supply during the hours shall not be interrupted arbitrarily.
1. Level 1 and Level 2: Twenty-four hours.
2. Level 3: Eighteen hours.
3. Level 4: The whole night.

Article 71

In the event of a complete or partial power suspension due to an accident not attributable to the electricity enterprise, except where an unexpected obstacle has occurred for which report shall be made afterwards, the relevant electricity enterprise shall report to the local competent authority for approval and shall then post for public notice. Where the power suspension is to last for more than fifteen (15) days, said report shall be forwarded to the central competent authority for approval.

Article 72

Electricity enterprises may suspend power supply to users under one of the following circumstances:
1. Where the user is found to be stealing electricity.
2. Where the user’s electricity use devices have failed inspection and rectification has not been made within the specified time limit.
3. Where the user refuses inspection.
4. Where the user defaults the electricity payment and has failed to make the past-due payment within a specified time limit.
For the power suspension under Subparagraph 1 of the preceding paragraph, the electricity enterprise may resume power supply after the user has made the payment in full for the stolen electricity and has provided a guarantee to ensure no more stealing of electricity.
For the power suspension under Subparagraphs 2 and 3 of the preceding paragraph, the electricity enterprise may resume the power supply upon rectification or acceptance of inspection by the user; for the power suspension under Subparagraph 4, the power supply may be resumed after the defaulted electricity payment has been made in full.

Article 73

For users or non-users stealing electricity, relevant electricity enterprise may, based on the type of electricity use equipment installed, calculate the amount of watts or horsepower consumed according to the set time and rate of electricity of said industry and claim for a reimbursement amount of not less than three months but not more than one year of the electricity fees owed.
The governing rules on electricity theft shall be provided by the central competent authority.

Article 74

Electricity enterprises shall not reject requests for emergency power supply by government agencies for the purpose of disaster prevention, for which the relevant costs shall be borne by the requesting government agency.

Article 75

Contract electric appliance installers shall not practice business before completing registration at the local competent authority and, within one month, enrolling in a respective electric appliance installer association, which shall not decline the enrollment of the said installers.
Unless otherwise stipulated by other laws and regulations, the installation, construction, and modification of a user’s electricity devices shall be administered by contract electric appliance installers, and no electricity supply should be connected before reporting the completion of the said tasks to the electricity enterprise and submitting a member certification of completion issued by the respective electric appliance installer association.
The review and approval or electricity connection may not begin without first submitting a membership certificate issued by the respective electric engineer association along with the drawing design and description or the report of completion of the tasks of electricity facilities and user’s electricity devices to be designed or supervised by lawfully registered and practicing professional electrical engineers, that are submitted for electricity enterprise review and approval.
Said electrical engineers shall not practice the design or installation supervision business for electricity facilities or user’s electricity devices before enrolling in the local electrical engineer association, which shall not decline the enrollment of the said engineers.
Contract electric appliance installers shall hire electricians who have acquired certificate by successfully passing the skill examination of the respective category or have been lawfully qualified prior to the promulgation of this Act on March 5, 2007 to practice the business of electric appliance installation.
The regulation governing the registration, cancellation, or revocation of registration of electric appliance installers shall be provided by the central competent authority.

Article 75-1

Industrial plant, mine field and structures and buildings for public use that are installed with power equipment, and power-use locations that are fed by electricity classified as high voltage or above shall employ a full-time electrical technician or entrust to a power facility inspection and maintenance administration to ensure the safety of general and emergency power equipment use within the boundary lines of the electricity supply equipment of the electricity enterprise, and register with the local competent authority.
The competent authority shall notify the power-use location that fails to comply with the preceding paragraph to remedy within a given time limit and may coordinate with the electricity enterprise to suspend electricity supply if no remedy is made within the said time limit.
Power facility inspection and maintenance administrations shall not practice its business before completing registration at the local competent authority and, within one month, enrolling in the respective power facility inspection and maintenance administrations association, which shall not decline the enrollment of the said administrations.
The scope and criteria for the location set forth under Paragraph 1 shall be provided by the central competent authority.
The regulation governing the registration, cancellation, or revocation of registration of full-time electrical technicians and power facility inspection and maintenance administrations shall be provided by the central competent authority.

Chapter V Supervision

Article 76

The responsible person of the electricity enterprise shall report to the central competent authority within fifteen days of office assumption for recordation.

Article 77

In the event of poor management of the electricity enterprise, the central or local competent authority may specify a time period for improvement. Where the improvement is not made within the specified time limit, the central competent authority may, by its own authority or by the request of the local competent authority, demand replacement of the responsible person; where the improvement is still not made, the relevant electricity enterprise may be revoked of the electricity business right.

Article 78

For electricity equipment deemed incompliant with the government’s industrial policy by the central competent authority, the provisions under the preceding article shall apply mutatis mutandis.

Article 79

For the profit margin at year-end settlement that is lowered than the standard set forth under Article 60, the central competent authority may approve a fee raise application by the relevant electricity enterprise; where said margin is higher than the specified standard, half of the portion in excess of the standard shall be used as reserved funds of the electricity enterprise, and the other half for electricity rate reduction.

Article 80

Electricity enterprises shall produce and submit a monthly summary report of business operation and an annual business report within three months of the end of each business operation year to the central and the local competent authority respectively for recordation.
The format for said reports shall be prescribed by the central competent authority.

Article 81

For electricity enterprises’ business reports, the central or local competent authority may demand supporting materials from the industry or send personnel for a site inspection.

Article 82

For the equipment of electricity enterprises, the central or local competent authority may perform inspection at any time. In the event of inconformity, a time period may be specified for repair or replacement; where a danger is likely to occur due to said inconformity, a suspension of operation or use of equipment may be imposed.

Article 83

For reassignment or relocation of major power generation equipment, the relevant electricity enterprise shall file an application with the central competent authority and may not proceed with said reassignment or relocation unless and until the approval of the central competent authority has been obtained.

Article 84

For expansion or replacement of major power generation equipment, the relevant electricity enterprise shall submit the work sketch to the central competent authority for work permit application.

Article 85

For capital increase or decrease, or bond issuance or external debt acceptance, the relevant electricity enterprise shall, in addition to meeting the requirements set forth under other acts and regulations, apply with the central competent authority for approval.

Chapter VI Small Electricity enterprises

Article 86

Electricity enterprises with a capacity of less than point five megawatts (0.5 MW) are categorized as small electricity enterprises.

Article 87

The effective period of the electricity business right for small electricity enterprises is ten years. Relevant small electricity enterprises may file for an extension one year prior to the expiry of the effective term. Said extension period shall be limited to five years for each application. For business discontinuation, the relevant industry shall make a report one year prior to the expiry of the effective term.

Article 88

Small electricity enterprises shall not set up a director engineer position.

Article 89

Small electricity enterprises shall submit newly formulated and revised operation regulations, electricity prices, and the rates of various charges to the central competent authority for approval. Said documents shall be posted for the public after approval.

Article 90

Small electricity enterprises shall provide electricity for at least six (6) hours per day.

Article 91

Small electricity enterprises may set a base consumption at kilowatt-hour (kWh) per month for their electricity charging scheme, which shall be at the highest five kilowatt-hour (5 kWh) per amp.

Article 92

The voltage fluctuation of electricity supply of small electricity enterprises shall not exceed five per cent (5%) at the highest and fifteen per cent (15%) at the lowest.

Article 93

Small electricity enterprises shall produce a monthly summary report and compile and submit said reports every three months.

Article 94

The responsible person of small electricity enterprise shall report to the local competent authority within fifteen days of office assumption for recordation.

Article 95

The provisions under Article 38 shall not apply to small electricity enterprises.

Article 96

For matters not provided for under this chapter, relevant provisions under other chapters shall apply mutatis mutandis.

Chapter VII Self-use Power Generation Equipment

Article 97

Industrial mining companies, farmland irrigation facilities, government institutions or schools, and hospitals meeting one of the following conditions may install power generation equipment for their own exclusive use:
1. Where local electricity supply is absent or in shortage and where increase in electricity supply within one year is expected to be unlikely.
2. Where no by-products can be utilized.
3. Where the steam used for production can be used for power generation.
4. Where power supply cannot be interrupted.
5. Where the cost for procurement exceeds that of self-generation to the extent that the business development may be hampered.

Article 98

Where the capacity of self-use power generation equipment has reached two megawatts (2 MW) and above, work permit from the central competent authority is required for purchase or expansion of said equipment. Where said capacity is less than two megawatts (2 MW), application shall be filed with the local competent authority and forwarded to the central competent authority for recordation.
Relevant application procedure, time period, review items, and management rules regarding the permission, registration, revocation, and registration nullification and change of self-use power generation equipment shall be provided by the central competent authority.

Article 99

The power line placement for self-use power generation equipment shall be confined to the self-owned land area, with the exception where the line placement doest not obstruct the local electricity enterprise and where the approval of the central competent authority has been obtained.

Article 100

The local electricity enterprise may whole-purchase the excessive power generated by self-use generation equipment for re-supply, to which the purchase contract shall be reported to the local competent authority for recordation.

Article 101

After installation of self-use power generation equipment, relevant institution shall file registration with the central competent authority, of which the format shall be prescribed by the central competent authority.

Article 102

After self-use power generation equipment has been properly registered, the central competent authority shall issue a registration certificate for self-use power generation equipment.

Article 103

After self-use power generation equipment has been registered, report on power generation items shall be produced every six months. Where the capacity of power generation is in excess of point five megawatts (0.5 MW), said reports shall be submitted respectively to the central and the local competent authority for recordation; where the capacity is lower than point five megawatts (0.5 MW), reports shall be submitted to the local competent authority for recordation. If necessary, the central or local competent authority may send personnel for equipment inspection.
The format for said reports shall be prescribed by the central competent authority.

Article 104

For change of major items on the registration certificate of self-use power generation equipment, or for transfer of said equipment along with the principal business, relevant institution shall file for a registration change.

Chapter VIII Penal Provisions

Article 105

Offenders of theft or sabotage of electric poles, electric wires, transformers, or other power supply equipment shall be subject to aggravated punishment according to the Criminal Code.

Article 106

Any person committing the following acts shall be deemed guilty of theft of electricity and shall be punished with imprisonment for not more than five (5) years, detention, or a fine of not more than one thousand and five hundred New Taiwan dollars (NT$1,500):
1. Unauthorized connection of electricity wires to the power supply lines of an electricity enterprise.
2. Circumvention of wires around the electric meter or other electricity measuring instruments, or damage or change the electric wiring outside the meter.
3. Damage or alteration of the structure of electric meters, power failure meters, or other electricity measuring instruments, or use of other measures to invalidate said instruments.
4. Unauthorized connection of electricity appliances of a higher-rate to electricity lines of a lower electricity rate.
5. Unauthorized addition to the originally set number of pieces or watts of lighting devices by lighting device exclusive users.
Electric power users adding horsepower, kilowatts, or kilo amps more than quoted in the original application without filing an application shall be held liable for the claim of electricity fee in accordance with Article 73.

Article 107

For electricity enterprises under one of the following circumstances, the responsible person thereof shall be punished with imprisonment for not more than one (1) year, detention, or a fine of not more than nine thousand New Taiwan dollars (NT$9,000):
1. Collection of any fees from users for services incompliant with the acts and regulations or not specified in the approved operation regulations.
2. Arbitrary increase of charges or violation of the approved electricity prices or various charging rates or the base electricity kilowatt-hour consumption.
3. Violation of the provisions regarding construction safety under Articles 34, 36, 41-45, and 82, which can lead to a disaster within the electricity supply region.

Article 108

For electricity enterprises under one of the following circumstances, the responsible person thereof may be punished with a fine of not more than nine thousand New Taiwan dollars (NT$9,000) for each offense:
1. Arbitrary change of operation region or provision of electricity outside the approved operation region that are in violation of the provisions under Paragraph 1 of Article 17, Articles 21-23, and Paragraph 1 of Article 25.
2. Commencement of construction or operation prior to approval that is in violation of the provisions under Paragraph 1 or 2 of Article 18.
3. Failure to apply for an approval according to the provisions under Articles 28 and 29.
4. Under business suspension due to violation of the provisions set forth under Paragraph 1 of Article 30.
5. Failure to file reports within the specified time limits set forth under Article 55.
6. Arbitrary interruption of electricity supply that is in violation of the provisions under Article 70.
7. Electricity supply under suspension due to violation of the approval application requirement set forth under Article 71.

Article 109

For electricity enterprises under one of the following circumstances, the responsible person thereof shall be punished with a fine of not more than six thousand New Taiwan dollars (NT$6,000) for each offense:
1. Failure to set up a director engineer position according to Article 13.
2. Failure to apply for approval before operating other businesses or failure to establish separate independent accounting records therefor according to Article 14.
3. Failure to apply for replacement of business license of electricity enterprise according to Article 27.
4. Failure to submit or revoke electricity enterprise business license pursuant to Paragraph 2 of Article 30.
5. Failure to install the various required electricity meters and instruments pursuant to Article 40.
6. Failure to file reports within specified time limits according to the provisions set forth under Articles 47, 76, 80, and 93.
7. Failure to file reports for recordation within the specified time limit set forth under Article 61.
8. Failure to apply for approval according to Articles 83 to 85.

Article 110

Owners of self-use power generation equipment committing one of the following acts shall be punished with a fine of not more than nine thousand New Taiwan dollars (NT$9,000):
1. Failure to apply for a permit or approval according to the provisions set forth under Article 98.
2. Establishment of power line routes in violation of the provisions under Article 99.

Article 111

Owners of self-use power generation equipment committing one of the following acts shall be punished with a fine of not more than six thousand New Taiwan dollars (NT$6,000):
1. Failure to file for registration or registration change pursuant to Article 101 or Article 104.
2. Failure to produce or submit reports as required by Article 103.

Article 112

Contract electric appliance installers in violation of Paragraph 1 of Article 75, or power facility inspection and maintenance administrations in violation of Paragraph 3 of Article 75-1, shall be punished with a fine of not more than six hundred New Taiwan dollars (NT$600) and may in addition thereto, be suspended from business operation.

Article 113

Electricians in violation of Paragraph 2 of Article 75 shall be punished with a fine of not more than three thousand New Taiwan dollars (NT$3,000) and may in addition thereto, be suspended from work.

Chapter IX Supplementary Provisions

Article 114

Prior to the taking effect of this Act, if the exclusive operation contracts and operation regulations of various electricity enterprises are found to be incompliant with this Act, said contracts or regulations shall be revised within six months of the taking effect of this Act.

Article 114-1

The competent authority shall collect review fees, issuance fees, or registration fees for processing of permit application, inspection, license or certificate issuance or registration pursuant to relevant provisions under this Act, of which the charging standard shall be provided by the central competent authority.

Article 115

This Act shall come into force as of the day of promulgation.