e Council shall, within the scope of their respective 
authorities, be responsible for the supervision and control of electric 
power industry. 
The comprehensive administrative departments of economy under the 
local people's governments at and above the county level, acting as the 
administrative departments of electric power in their own administrative 
divisions, shall be responsible for the supervision and control of the 
electric power industry. The departments concerned under the local 
people's governments at and above the county level shall, within the scope 
of their respective authorities, be responsible for the supervision and 
control of electric power industry. 
Article 7 
Electric power construction enterprises, production enterprises and 
network operation enterprises shall operate autonomously, be responsible 
for their own profits and losses, and be subject to the supervision of the 
administrative departments of electric power, according to law. 
Article 8 
The State assists and supports minority nationality areas, frontier 
and remote areas, and poverty-stricken areas to develop their electric 
power industries. 
Article 9 
The State encourages the adoption of advanced science and technology 
as well as managerial methods in the construction, production, supply and 
utilization of electric power, and gives awards to those units and 
individuals that achieve remarkable successes with regard to research, 
development, and adoption of advanced science and technology as well as 
managerial methods. 
Chapter II Construction of Electric Power 
Article 10 
The planning for electric power development shall be drawn up on the 
basis of the requirements of national economy and social development and 
shall be put into the plan of national economy and social development. 
The planning for electric power development shall reflect the 
principles of rational utilization of energy, coordinated development of 
the power sources and power networks, increasing economic benefits, and 
being conducive to environmental protection. 
Article 11 
The construction and retrofit planning of urban power networks shall 
be put into the overall urban planning. The urban people's governments 
shall arrange to provide land for substation facilities, transmission 
line corridors, and cable channels in accordance with the planning. 
No unit or individual may illegally occupy or utilize the land 
designated to substation facilities, transmission line corridors, and 
cable channels. 
Article 12 
The State formulates relevant policies to support and promote electric 
power construction. 
The local people's governments shall adopt diversified measures in 
line with local conditions to develop power sources and promote power 
construction on the basis of the electric power development planning. 
Article 13 
Investors in electric power shall enjoy legal rights and interests 
over the electricity generated from their investment. Where electricity 
thus generated feeds into the power network, the investor shall have the 
priority in utilization; where a captive power plant is not in parallel 
operation with the power network, the investor shall have the authority in 
deciding the utilization on its own. 
Article 14 
Power construction projects shall conform to the electric power 
development planning as well as the State's industrial policies on the 
power industry. 
No power equipment and technology declared obsolete by formal decree 
of the State shall be used for power construction projects. 
Article 15 
Projects for power networks such as transmission, substation, power 
dispatching telecommunication and automation projects, and environmental 
protection projects, shall be designed, constructed, inspected for 
acceptance and put into operation simultaneously with electricity 
generation projects. 
Article 16 
Land used for power construction projects shall be handled in 
accordance with relevant laws and administrative regulations; and in the 
case where the land is legally requisitioned, the land compensation fee 
and relocation compensation fee shall be paid therefor according to law, 
and the relocation of residents shall be handled properly. 
Power construction shall carry out the principles of giving practical 
protection to cultivated land and economizing on land utilization. 
The local people's governments shall support and assist the legal 
utilization of land and the relocation of residents for the sake of power 
construction. 
Article 17 
The local people's governments shall support power enterprises in 
exploring water resources, tapping and using water according to law for 
the construction of electricity generation projects. The power enterprises 
shall economize on water. 
Chapter III Electric Power Production and Power Network Management 
Article 18 
Electric power production and power network operation shall be in line 
with the principles of safety, high quality and economy. 
The operation of power networks shall be maintained in a continuous 
and stable way and the reliability of power supply shall be guaranteed. 
Article 19 
Electric power enterprises shall strengthen the management on safe 
production, adhere to the principle of safety first and prevention 
prevailing, and set up and improve the responsibility system of safe 
production. 
Electric power enterprises shall carry out regular check, inspection 
and maintenance on power facilities in order to guarantee their normal 
operation. 
Article 20 
Enterprises engaged in the supply and transportation of fuel for 
electricity generation and electric power production enterprises shall 
supply, transport, and unload and take delivery of such fuel in 
accordance with the relevant regulations of the State Council or 
contractual agreements. 
Article 21 
Unified dispatch and hierarchical management shall be implemented in 
the operation of power networks. No unit or individual may illegally 
intervene in the dispatch of power networks. 
Article 22 
The State advocates parallel operation between power production 
enterprises and power networks or among networks. Requests by power 
production enterprises with the qualifications of an independent legal 
entity to feed its electricity generated into a power network shall be 
accepted by the network operation enterprises. 
Parallel operation must be consist with the standards of the State or 
the power industry. 
The two parties in parallel operation shall sign the parallel 
operation agreements and stipulate the rights and obligations of each in 
accordance with the principles of unified dispatch, hierarchical 
management, equality and mutual benefits, and reaching unanimity through 
consultation; in the case where the two parties fail to reach a parallel 
operation agreement, the administrative department of electric power at 
and above the provincial level shall coordinate and make a decision. 
Article 23 
The regulations for power network dispatch and management shall be 
worked out by the State Council subject to the provisions in this law. 
Chapter IV Supply and Utilization of Electric Power 
Article 24 
The State adopts the principles of safe, economical and planned 
supply and utilization of electric power. 
The regulations of supply and utilization of electric power shall be 
worked out by the State Council on the basis of the provisions in this 
law. 
Article 25 
Power supply enterprises shall supply power to the users within their 
franchised service areas. 
The division of electricity service areas shall take into account such 
factors as the structure of power networks and the rationality of power 
supply. Only one power supply enterprise shall be established in each 
electricity service area. 
The establishment or alteration of electricity service areas within 
the territories of provinces, autonomous regions or municipalities 
directly under the Central Government shall be applied by power supply 
enterprises, such application shall be examined by the administrative 
departments of electric power under the people's governments at the level 
of provinces, autonomous regions, or municipalities directly under the 
Central Government in conjunction with relevant departments at the same 
level, if approved, the said administrative departments of electric power 
shall issue the Power Supply Business Permits. The establishment or 
alteration of trans-regional electricity service areas shall be examined 
by the administrative department of electric power under the State 
Council, which, if approved, shall issue the Power Supply Business Permit. 
Power supply enterprises shall not begin operation until they apply for 
and obtain the business licenses from the industrial and commercial 
administrations by showing the Power Supply Business Permit. 
Article 26 
Power supply enterprises in any electricity service area shall be 
obligated to supply power as the State stipulated to the users within 
their service areas. Power supply enterprises shall not be permitted to 
violate the State's regulations by refusing to supply power to any unit or 
individual applying for electricity within their service areas. 
Applications for new electricity utilization, temporary electricity 
utilization, increases in capacity of electricity utilization, as well as 
alteration and termination of electricity utilization shall accomplish the 
procedure as stipulated. 
Power supply enterprises shall, at their business places