This Act is hereby promulgated to serve the purpose of upgrading energy administration aimed at rational and efficient utilization of energy.
In order to ensure the stable and safe supply of energy, as well as taking into consideration environmental impact and economic development, the central Competent authority shall draft the Energy Development Guidelines which shall be subject to approval by the Executive Yuan for implementation.

The term "energy" as used in this Law shall include:
1. Petroleum and its products.
2. Coal and its products.
3. Natural gas.
4. Nuclear fuel.
5. Electrical energy.
6. Other items designated by the central Competent authorities as a form of energy..

The term "Competent authority" as used in this Law shall denote the Ministry of Economic Affairs at the central level; the municipal government at the municipal level; the county/city government at the county/city level.

The term "Energy supply enterprise" as used in this Law shall denote the enterprises involved in the importation, exportation, production, transportation, storage and sale of energy.

The central Competent authority may establish a special fund for research and development of energy together with a project plan for purpose of enhancing research and development of energy in accordance with the Budget Law.
The foregoing special fund shall serve the following purposes:
1. Research and development of technology relevant to exploitation of energy resources and alternative energies.
2. Research and development relevant to technology and methodology for the rational and efficient use of energy as well as energy conservation.
3. Economic analysis and collection of information on energy.
4. Training of experts in energy planning and technology.
5. Other expenses as approved.
Incentives or subsidies may be granted to the juristic person or individual whose engagement in research under subsection 1 and 2 of the preceding paragraph proves to be highly practical.
The central Competent authority shall submit to the Legislative Yuan the annual report on the effectiveness in carrying out the energy research and development plan and of the use of the special fund.

The sources of the Energy Research and Development Fund are as follows:
1. Contribution of the vertical integrated utilities, oil refinery industry and oil importer at a percentage of their income generated from the energy business.
2. Interest income on the Fund.
3. Energy Technical service fees, royalties, remuneration and other associated income.
The contribution mentioned in subsection 1 of the preceding paragraph shall be collected in a number not exceeding half of one percent (0.5%) of the income of the vertical integrated utilities, oil refinery industry and oil importer generated from their energy business as determined by the central Competent authority.
Enterprises depicted in subsection 1 of paragraph 1 hereof that have paid into the electrical energy or petroleum fund as provided by other laws are exempted from making contribution to the Energy Research and Development Fund.