This Act is enacted for the purpose of developing effectively managing the national electric power resources, regulating electricity supply, facilitating the transformation of energy production, reducing the carbon emission, promoting the supply diversification of the electricity industry, fair competition and reasonable business practice, protecting the interest of the users, and improving the welfare of the society, so as to fulfill the goal of sustainable development of the country.

Definitions
Definitions of terms used in the Act:
1. “Electricity Enterprise” means the corporations involved in the electric power generation, transmission and distribution, and retailing as sanctioned in this Act.
2. “Electricity Generating Enterprise” means a non-public utility that operates major power generation equipment and engages in the generating and selling of electricity, including the renewable-energy-based electricity generating enterprise.
3. “Renewable-Energy-Based Electricity Generating Enterprise” means an 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” means a public utility that installs the power grids all over the country to wheel the electric power.
5. “Electricity Retailing Enterprise” means electricity retailing utility corporations and renewable-energy-based electricity retailing corporations.
6. “Electricity Retailing Utility Enterprise” means a public utility that purchases electricity for the purpose of reselling it to the users.
7. “Renewable-Energy-Based Electricity Retailing Enterprise” means a non-public utility that purchases electricity generated from renewable energy for the purpose of reselling it to the users.
8. “Electricity Facilities” means the infrastructure required for the generation, transmission and distribution of electricity.
9. “Major Power Generation Equipment” means a motor, a power generator or other required infrastructure for energy conversion.
10. “Self-Use Power Generation Equipment” means the major power generating facilities installed by enterprises other than the electricity corporations, groups or individuals (natural persons) to generate power for private use.
11. “Renewable Energy” means the renewable energy as prescribed in Article 3 of the Renewable Energy Development Act or power generated from sustainable sources as approved and recognized by the central competent authority.
12. “User’s Electricity Device” means any conduits, transformers, switches and other equipment installed by users for the conveyance of electricity.
13. “Renewable-Energy-Based Power Generation Equipment” means the power generating infrastructure approved with official licenses issued by the central competent authority as prescribed in Article 3 of the Renewable Energy Development Act.
14. “Power Grid” means the whole or a part of a system, consisting of a set of conduits, supporting equipment and transformer facilities, that distributes electricity by connecting the breakpoint between the primary power-generating infrastructure and the electricity transmission and distribution corporations to the users.
15. “Power Line” means the whole or a part of a system, consisted of a set of conduits, support equipment and transformer facilities that connect the primary power-generating infrastructure to the breakpoint of electricity transmission and distribution corporations or users of the electricity generated by the former.
16. “Network” means the power grids and power lines installed pursuant to the Act.
17. “User” means the end user of the electricity other than the electricity enterprises.
18. “Contract Electric Appliance Installer” means the corporation that provides installation services for systems relating to the electricity facilities and user’s electricity devices.
19. “Power Facility Inspection and Maintenance Administration” means the corporation that provides the inspection and maintenance services for user’s electricity devices.
20. “Demand Response” means the changes in the power consumption in response to conditions of the power supply systems.
21. “Ancillary Service” means the measures taken to facilitate the transmission of electricity and to ensure the safety and stability of the power supply systems.
22. “Electricity Carbon Emission Factor” means the amount of the carbon dioxide emission per unit of electricity generated.
23. “Direct Supply” means that a renewable-energy-based electricity generating corporation installs power lines connecting directly to the users and thereby supplying power.
24. “Wheeling” means that an electricity transmission and distribution corporation installs power grids to transmit and distribute electricity.

The competent authorities referred to in this Act are the Ministry of Economic Affairs at the central level, and the Municipal Governments at the municipal level, and the County (City) Government at the county (city) level.
The central competent authority has the following duties:
1. To analyze, to draft, and to implement electricity supplier policies;
2. To supervise and to manage the electricity construction safety and electricity facilities in the country;
3. To draft the regulations governing electric power techniques;
4. To supervise and to manage the electricity facilities;
5. To announce the percentage allocation of compensation to facilitate the development of electric power;
6. To draft, to approve, and to manage the pricing of electricity and other fees and charges as well as the calculation formulae thereof;
7. To supervise and to manage other matters relating to the electric power techniques and safety thereof.
Competent authorities at the level of Municipal Governments or County (City) governments have the following duties:
1. To forward the building and expansion applications of the electricity enterprise and the electricity enterprise licenses applications;
2. To assist in the inspection of the user’s electricity device;
3. To cope with the disputes arising out of the land use between the electricity enterprise and the general public;
4. To supervise and to manage the electric power engineering industry, electrical technicians, and the power-use location.
The central competent authority shall designate the electricity industry regulatory authority to deal with the following matters:
1. To supervise and to manage the electricity enterprise and electric power market;
2. To permit and to approve the building and expansion applications of the electricity enterprise and the electricity enterprise licenses applications;
3. To forecast and to plan the matters pertaining to the electric power supply and demand;
4. To supervise and to manage the electricity carbon emission factor of the Electricity Retailing Utility Enterprise;
5. To supervise and to manage the users’ rights and interests of access and use of electricity;
6. To supervise and to manage the dispatch of electricity;
7. To mediate the disputes arising between the electricity enterprises or between the enterprises and the users;
8. To mediate the disputes involving the Electricity Retailing Enterprises or installations of the Renewable-Energy-Based Power Generation Equipment.
The electricity industry regulatory authority manages and supervises the incorporation, merger, restructuring and revocation of a government-owned electricity enterprise as well as the employment and discharge of important personnel of the corporation.
The central competent authority carries out the responsibilities prescribed in the two preceding paragraphs before the said authority designates an electricity industry regulatory authority.
The central competent authority may invite the government agencies, scholars and experts and the related civil organizations to form the Electricity Reliability Commission and the 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 according to the Company Act. However, the organizational structure required by a Renewable-Energy-Based Electricity Generating Enterprise is to be announced by the electricity industry regulatory authority.
An Electricity Enterprise incorporated in the form of a company limited by shares with a certain scale requires independent directors. The number of independent directors shall be no less than two as well as one-fifth of the directorships.
The certain scale, qualifications and conditions of an independent director, as prescribed in the preceding paragraphs of this Article, as well as other requirements associated with the said matters are subject to the future announcement by the electricity industry regulatory authority.

The Electricity Transmission and Distribution Enterprise shall be a state-owned corporation and no more than one. The scope of its business operation covers the entire country.
An Electricity Generating Enterprise that generates power with nuclear power plants or a hydroelectricity generating corporation whose capacity exceeds 20,000 kilowatts is required to be a public corporation unless the electricity industry regulatory authority 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 more than 50% of the total capital. An enterprise receiving investment from a corporation, which is reinvested by public corporation with more than 50% of the total share, is also considered a public corporation.

The Electricity Transmission and Distribution Enterprise may not engage in the generation or retailing of electricity. Cross holdings of shares of the Electricity Generation and Retailing Enterprises is prohibited. The engaging restriction however does not apply when the electricity industry regulatory authority approves otherwise. In such circumstance, the Electricity Transmission and Distribution Enterprise may run the Electricity Retailing Utility Enterprise concurrently.
An Electricity Transmission and Distribution Enterprise may engage in business pursuits other than those in the electricity industry on the condition that the said business pursuits neither affect the operation as an Electricity Transmission and Distribution Enterprise nor compromise the maintenance of fair competition, and with the approval by the electricity industry regulatory authority.
An Electricity Transmission and Distribution Enterprise shall establish a separating accounting system for the losses and profits of the respective businesses. Cross subsidization is prohibited.
The electricity industry regulatory authority shall establish the accounting separation system, accounting method, procedures and principles, guidelines for supervision and management of accounting practices and other related matters.
To achieve the goal of steady supply of electricity, Taipower Company will be divided into an Electricity Generating Enterprise and an Electricity Transmission and Distribution Enterprise, and transform into a parent holding company that sets up Electricity Generating Enterprise and Electricity Transmission and Distribution Enterprise as subsidiaries.
The first paragraph of this Article is effective in six years after the amended articles of the Act were promulgated on January 11, 2017. However, the electricity industry regulatory authority may submit to the Executive Yuan a request for a postponement of the effect date based on its assessment of the development and condition of the electricity market. The 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.