The State advocates the exploitation of rural hydropower resources, 
the construction of medium and small size hydropower stations to promote 
rural electrification. 
The State encourages and supports rural areas to utilize solar energy, 
wind energy, geothermal energy, biomass energy, and other energy 
resources to develop rural electric power sources and to increase the 
rural power supply. 
Article 49 
The local people's governments at and above the county level and their 
comprehensive economic departments, when allocating electricity quotas, 
shall guarantee the proper proportion of electricity for rural and 
agricultural utilization, and give priority to the electricity for rural 
floodwater drainage, combat of drought, and seasonal agricultural 
production. 
Electric power enterprises shall comply with the allocation of 
electricity as set forth in the preceding section, and shall not reduce 
the quotas for rural and agricultural utilization. 
Article 50 
The electricity price for agriculture shall be set in accordance with 
the principles of "cost compensation" and "marginal profit". 
The price of electricity utilized by farmers and by local urban 
residents for their living shall be gradually unified. 
Article 51 
The regulation on management of electric power for agricultural and 
rural utilization shall be worked out by the State Council. 
Chapter VII Protection of Power Facilities 
Article 52 
No unit or individual may harm electricity generation, substation and 
electric power line facilities as well as their relevant auxiliary 
facilities. 
Any explosion operations that are conducted in the vicinity of power 
facilities, and other work that might endanger the safety of power 
facilities, shall be in accordance with regulations of the State Council 
concerning the protection of power facilities, conducted only after 
approval and definite measures for ensuring the safety of the power 
facilities are taken. 
Article 53 
The administrative department of electric power shall, according to 
the regulations of the State Council concerning the protection of power 
facilities, set up signs in power facility protection areas. 
No unit or individual may construct any buildings or other 
constructional structures, plant vegetation, or place objects which might 
endanger the safety of power facilities within power facility protection 
areas demarcated according to law. 
Vegetation that imperils the safety of power facilities but was 
planted before the area was demarcated according to law as a power 
facility protection area, shall be trimmed or cut. 
Article 54 
In power facility protection areas demarcated according to law, units 
or individuals may carry out operations that might endanger the safety of 
the power facilities only after approval of the administrative department 
of electric power and definite safety measures have been taken. 
Article 55 
If power facilities and public projects, afforestation projects or 
other projects obstruct one another in the process of construction, 
reconstruction and expansion, the units involved shall begin operations 
only after consultation in accordance with the State's relevant 
regulations and reaching an agreement. 
Chapter VIII Supervision and Inspection 
Article 56 
The administrative department of electric power shall supervise and 
inspect the implementation of the electricity laws and the administrative 
regulations by electric power enterprises and users. 
Article 57 
If needed, the administrative department of electric power may staff 
electric power supervisory and inspective personnel. 
Electric power supervisory and inspective personnel shall be impartial 
and honest, enforce laws justly, be familiar with the electricity laws and 
regulations, and master relevant specialized electric power techniques. 
Article 58 
When electric power supervisory and inspective personnel perform their 
duties, they shall have the rights to ascertain the implementation of the 
electricity laws and the administrative regulations by electric power 
enterprises and users, scrutinize relevant documents, and have the 
authority to enter the spots for inspection. 
The electric power enterprises and users shall provide all convenience 
to electric power supervisory and inspective personnel who are on duty. 
When carrying out supervision and inspection, electric power 
supervisory and inspective personnel shall present proper identification. 
Chapter IX Legal Responsibility 
Article 59 
Electric power enterprises or users who break the power supply and 
utilization contract and thereby cause the other party contractual losses 
shall be liable for compensation according to law. 
Electric power enterprises, in violation of the provisions of Article 
28 or Section 1 of Article 29 of this law, that do not ensure the quality 
of power supply or interrupt the power supply without prior notice to 
users and thereby cause users losses, shall be liable for compensation 
according to law. 
Article 60 
Electric power enterprises that cause users or the third party losses 
or damages because of electric power operation fault shall be liable for 
compensation according to law. 
Electric power enterprises are exempt from compensation liability if 
an electric power operation fault is caused by one of the following 
factors: 
(1) force major; 
(2) the user's own fault. 
If losses or damages are caused to electric power enterprises or other 
users because of the fault of a user or the third party, the user or the 
third party causing the losses shall be liable for compensation according 
to law. 
Article 61 
For those who violate the provisions of Section 2 of Article 11 of 
this law by illegally occupying or utilizing the land for substation 
facilities, transmission line corridors, and cable channels, the local 
people's governments at and above the county level shall order them to 
rectify within a given time period; if a rectification is not made within 
the specified time, the obstacles shall be forcefully eliminated. 
Article 62 
For those electric power construction projects that violate the 
provisions of Article 14 of this law by conflicting with the power 
development planning or industrial policy, the administrative department 
of electric power shall order them to stop the construction of the 
project. 
Those electric power construction projects that violate the provisions 
of Article 14 of this law by utilizing electric power equipment or 
technology declared obsolete by formal decree of the State, the 
administrative department of electric power shall order them to stop the 
use of such equipment or technology, confiscate the obsolete electric 
equipment and impose a fine of up to 50000 yuan. 
Article 63 
For those who violate the provisions of Article 25 of this law by 
supplying electricity or changing the service area without permission, the 
administrative department of electric power shall order them to rectify, 
confiscate any illegal gains, and impose a fine of up to five times the 
amount of any illegal gains. 
Article 64 
For those who violate the provisions of Article 26 or Article 29 of 
this law by refusing to supply electricity or by interrupting power 
supply, the administrative department of electric power shall order them 
to rectify, and give a disciplinary warning; if the case is serious, an 
administrative penalty shall be imposed upon the involved person in charge 
and those persons who bear direct responsibility. 
Article 65 
For those who violate the provisions of Article 32 of this law by 
endangering the safety of power supply and utilization or by disturbing 
the order of power supply and utilization, the administrative department 
of electric power shall order them to rectify and give them a warning. If 
the case is serious or in case of refusing to make rectification, the 
administrative department of electric power may suspend their power supply 
and impose a fine of up to 50000 yuan. 
Article 66 
For those who violate the provisions of Article 33, Article 43 or 
Article 44 of this law by charging users electricity fees that are not 
based on the price approved by the State or that are not based on the 
records of the electricity meters; or those who exceed their authority in 
setting electricity prices or in charging other fees, the pricing 
administrative department shall give them a warning, order them to return 
the fees and charges collected illegally, and may impose a fine of up to 
five times the amount of the fees and charges collected illegally. If the 
case is serious, an administrative penalty shall be imposed upon the 
involved person in charge and those persons who bear direct 
responsibility. 
Article 67 
For those who violate the provisions of Section 2 of Article 49 of 
this law by reducing the quota for agricultural and rural utilization, the 
administrative department of electric power shall order them to rectify. 
If the case is serious, an administrative penalty shall be imposed upon 
the involved person in charge and those persons who bear direct 
responsibility. If losses are thereby caused, the violator shall be 
ordered to make the compensation. 
Article 68 
For those who violate the provisions of Section 2 of Article 52 or 
Article 54 of this law by carrying out operations in the vicinity of the 
power facilities or in a power facility protection area demarcated 
according to law without