This Act is enacted for the purpose of developing and effectively managing national electric power resources, regulating the electricity supply, facilitating the energy transition, reducing carbon emissions, promoting the diversification of supply in the electricity industry as well as fair competition and reasonable business practices, protecting the interests of electricity users, and improving the welfare of the society, so as to achieve sustainable development of the country.

Definitions
Definitions of terms used in the Act:
1. “Electricity Enterprise” refers to any corporation involved in electric power generation, transmission and distribution, or retailing, as approved in accordance with this Act.
2. “Electricity Generating Enterprise” refers to any non-public utility that operates major power generation equipment and engages in the generation and selling of electricity, including the renewable energy-based electricity generating enterprises.
3. “Renewable Energy-Based Electricity Generating Enterprise” refers to any electricity generating enterprise that operates power generation equipment based on renewable energy sources, as prescribed in Article 3 of the Renewable Energy Development Act, and engages in selling electricity.
4. “Electricity Transmission and Distribution Enterprise” refers to any public utility that installs power grids across the country to wheel the electric power.
5. “Electricity Retailing Enterprise” refers to public electricity retailing utilities and renewable energy-based electricity retailing corporations.
6. “Public Electricity Retailing Utility” refers to any public utility that purchases electricity for the purpose of reselling to users.
7. “Renewable Energy-Based Electricity Retailing Enterprise” refers to any non-public utility that purchases electricity generated from renewable energy for the purpose of reselling to users.
8. “Electricity Facilities” refers to the equipment required for the managing business related to electricity generation, transmission and distribution.
9. “Major Power Generation Equipment” refers to prime movers, power generators, and other equipment required for energy conversion.
10. “Self-Use Power Generation Equipment” refers to major power generation equipment installed by enterprises other than the electricity industry, groups, or individuals (natural persons) to generate power for private use.
11. “Renewable Energy” refers to energy sources as prescribed in Article 3 of the Renewable Energy Development Act or other sustainable sources as approved and recognized by the central competent authority.
12. “User-end Electricity Equipment” refers to any conduits, transformers, switches and other equipment installed by users to receive electricity.
13. “Renewable Energy-Based Power Generation Equipment” refers to any power generation equipment approved with official licenses issued by the central competent authority as prescribed in Article 3 of the Renewable Energy Development Act.
14. “Power Grid” refers to any system, consisting of a set of conduits, supporting equipment and transformer facilities, that distributes electricity by connecting the breakpoint between major power generation equipment and the electricity transmission and distribution enterprise to the users.
15. “Power Line” refers to any system, consisting of a set of conduits, support equipment and transformer facilities that connect the major power generation equipment to the breakpoint between said equipment and the electricity transmission and distribution enterprise or users of the electricity generated by said equipment.
16. “Network” refers to the power grids and power lines installed pursuant to the Act.
17. “User” refers to any end user of the electricity outside of the electricity industry.
18. “Contract Electric Equipment Installer” refers to any corporation that provides installation services for electricity facilities and user-end electricity equipment.
19. “Electricity Equipment Inspection and Maintenance Enterprise” refers to any corporation that provides inspection and maintenance services for user-end electricity equipment.
20. “Demand Response” refers to changes in power consumption behavior in response to condition of the electricity system.
21. “Ancillary Service” refers to any service to facilitate the transmission of electricity and to ensure the safety and stability of the electricity supply.
22. “Electricity Carbon Emission Factor” refers to the amount of carbon dioxide emissions per unit of electricity generated.
23. “Direct Supply” refers to the situation in which a renewable energy-based electricity generating enterprise installs power lines connecting directly to users and thereby supplying power.
24. “Wheeling” refers to the situation in which an electricity transmission and distribution enterprise installs one or more power grids to transmit and distribute electricity.

The competent authorities referred to in this Act are the Ministry of Economic Affairs at the central government level, the Municipal Governments at the municipal level, and the County (City) Governments at the county (city) level.
The central competent authority has the following duties:
1. To analyze, draft, and implement policies related to the electricity industry;
2. To supervise and manage the safety of electricity works and electricity facilities in the country;
3. To draft technical regulations governing electric power;
4. To supervise and manage electricity facilities;
5. To announce the contribution rate for the electric power development support fund;
6. To draft, approve, and manage the pricing of electricity and other fees and charges as well as the calculation formulae thereof;
7. To supervise and manage other matters relating to the electric power technology and safety.
Competent authorities at the level of Municipal Governments or County (City) governments have the following duties within the municipality, county, or city they administer:
1. To forward applications for founding and expanding electricity enterprises, and business license applications for electricity enterprises;
2. To assist in the inspection of user-end electricity equipment;
3. To mediate in land use disputes between electricity enterprises and the general public;
4. To supervise and manage the electric power engineering industry, electrical technicians, and locations where electricity is used.
The central competent authority shall designate an electricity industry regulatory agency to fulfill the following responsibilities:
1. To supervise and manage electricity enterprises and the electric power market;
2. To permit and approve applications for founding and expanding electricity enterprises, and business license applications for electricity enterprises;
3. To forecast and to plan matters pertaining to electric power supply and demand;
4. To supervise and manage the electricity carbon emission factor of the Public Electricity Retailing Utility;
5. To supervise and manage the rights and interests of electric power users;
6. To supervise and manage the dispatch of electricity;
7. To mediate in disputes arising between electricity enterprises or between electricity enterprises and users;
8. To mediate in disputes involving the Electricity Retailing Enterprises or installations of the Renewable Energy-Based Power Generation Equipment.
The electricity industry regulatory agency shall manage and supervise the incorporation, merger, restructuring, or revocation of any state-owned electricity enterprise as well as the employment and discharge of important personnel in said enterprise.
The central competent authority shall carry out the responsibilities prescribed in the two preceding paragraphs prior to said authority designating an electricity industry regulatory agency.
The central competent authority may invite government agencies, scholars and experts, and related civic organizations to form an Electricity Reliability Commission or Electricity Industry Mediation Commission to carry out the responsibilities described in paragraph 4 Subparagraphs 6 to 8 of this Article.

An Electricity Enterprise is required to be a company limited by shares as prescribed by the Company Act. However, the organizational structure required for a Renewable Energy-Based Electricity Generating Enterprise shall be separately decided and announced by the electricity industry regulatory agency.
An Electricity Enterprise incorporated in the form of a company limited by shares that reaches a certain size shall appoint independent directors. The number of independent directors shall be no fewer than two, and no fewer than one-fifth of the total number of directors.
The size upon the Enterprise shall appoint independent directors and the qualifications and conditions required for independent directors, as prescribed in the preceding paragraphs of this Article, as well as other relevant requirements, shall be established by the electricity industry regulatory agency.

The Electricity Transmission and Distribution Enterprise shall be a state-owned corporation, and no more than one shall be established with its business operations covering the entire country.
An Electricity Generating Enterprise with nuclear power generation or hydroelectricity generation exceeding 20,000 kilowatts in capacity is required to be a public corporation unless the electricity industry regulatory agency approves otherwise.
The “public corporation” as prescribed in the preceding paragraph refers to a corporation fully funded by the government or a joint venture between the government and the private sector with the government’s share of investment exceeding 50% of the total capital. An enterprise receiving reinvestment by public corporations is also considered a public corporation if the reinvestment exceeds 50% of the total capital.

The Electricity Transmission and Distribution Enterprise may not engage in the generation or retailing of electricity. Cross share-holding of shares of Electricity Generation and Retailing Enterprises is prohibited. However, the Electricity Transmission and Distribution Enterprise may concurrently operate as a Public Electricity Retailing Utility with the approval of the electricity industry regulatory agency.
The Electricity Transmission and Distribution Enterprise may engage in businesses outside of the electricity industry only if said businesses neither affect its operation as an Electricity Transmission and Distribution Enterprise nor interfere with fair competition, and with the approval by the electricity industry regulatory agency.
The Electricity Transmission and Distribution Enterprise shall establish separate accounting system for the losses and profits of its respective businesses. Cross subsidization is prohibited.
The electricity industry regulatory agency shall establish the separate accounting system; accounting methods, procedures and principles; guidelines for supervision and management of accounting practices; and other related matters.
To achieve the goal of steady supply of electricity, the Taiwan Power Company shall separate its Electricity Generating Enterprise and Electricity Transmission and Distribution Enterprise activities. The Company shall then be reconstituted as a parent holding company that sets up an Electricity Generating Enterprise and the Electricity Transmission and Distribution Enterprise as subsidiaries.
The first paragraph of this Article shall come into effect six years after the promulgation of the amended articles of the Act on January 11, 2017. However, the electricity industry regulatory agency may submit to the Executive Yuan a request for a postponement based on its assessment of the development and condition of the electricity market. Postponement may be requested no more than two times. The first postponement shall be limited to two years and the second limited to one year.