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Chapter Law Content

Title: The Electricity Act CH
Category: Ministry of Economic Affairs(經濟部)
Chapter 3 Permits and Licenses
Article 13
The Electricity Generating Enterprise and Electricity Transmission and Distribution Enterprise, in building and expanding the infrastructure, shall prepare and submit an application and supporting documentary evidence to the government authority to which the enterprise belongs or the competent authority at the level of the Municipal Government or County (City) government for a permit to apply to build or expand the infrastructure.
If the application for permit, as described in the preceding paragraph, requires an environmental impact assessment pursuant to the Environmental Impact Assessment Act, the applicant shall provide environment impact assessment documents reviewed or approved by an environmental protection competent authority.
The building or expansion permit described in the first paragraph of the Article expires in three years, but an application for extension of the time of the permit with due reasons may be submitted prior to the expiration of the current permit. The extension period shall not exceed two years.
Article 14
The electricity industry regulatory authority, in reviewing the application for a permit prescribed in the first paragraph of the preceding article, shall consider the energy policy, Electricity Carbon Emission Factor, national land development, regional balance development, environmental protection, fair competition among electricity enterprises, supply and demand of the electric energy, backup capacity as well as safety of the power systems, in addition to the integrity of the applicant’s plan.
Article 15
During the time of the building or expansion permit, the Electricity Transmission and Distribution Enterprise shall obtain work permits issued by the electricity industry regulatory authority and begin the construction. The construction shall be completed within the time of the work permit.
The time of the work permit described in the previous paragraph is five years. The restriction does not apply if the corporations have due reasons and the electricity industry regulatory authority approves the extension thereof.
The Electricity Transmission and Distribution Enterprise shall prepare the documents and information in support of its application for issuing or replacement of the appropriate electricity license to the government authority to which the corporation belongs or the competent authority at the level of the Municipal Government or County (City) government. The application shall be submitted within 30 days upon completion of the work.
After the submission of the application described in the previous paragraph, the enterprise may begin its business operation only after the personnel designated by the electricity industry regulatory authority performs the necessary inspection and approves the work, and that an appropriate electricity license is issued or replaced.
The Electricity Retailing Enterprise shall submit an application to the electricity industry regulatory authority for an appropriate electricity license before beginning its business operation.
Article 16
Unless otherwise approved by the electricity industry regulatory authority, the Electricity Generating Enterprise that has been granted a building permit, expansion permit or work permit shall not change the source of energy, system capacity or address of the facility of the Major Power Generation Equipment.
Article 14 of this Act applies mutatis mutandis to the review of the foregoing paragraph.
Article 17
The effective period of an Electricity Enterprise license is twenty years starting from the date of issuance by the electricity industry regulatory authority. The Electricity Generating Enterprise may file for an extension with electricity industry regulatory authority one year prior to the expiration of the license. Every extension period shall be no longer than 10 years.
Article 14 of this Act applies mutatis mutandis to the review of the applications for extension of Electricity Generating Enterprise and Transmission and Distribution Enterprise licenses described in the previous paragraph.
Article 18
The Electricity Transmission and Distribution Enterprise shall not reject any request put forward by the Electricity Generating Enterprise or Self-Use Power Generation Equipment for connection to its power grid. The Renewable-Energy-Based Electricity Generating Enterprise shall be given priority to connect to the grid. The Article however does not apply to Electricity Facilities or Self-Use Power Generation Equipment that request connection but do not meet the requirements provided in Paragraph 1 and Paragraph 3 of Article 25, Article 26, Article 29 to Article 31, Article 71 mutatis mutandis applying the above provisions or Article 32.
Article 19
An Electricity Enterprise shall not presume to terminate or suspend for business. However, the restriction does not apply to the Electricity Generating Enterprise and Renewable-Energy-Based Electricity Retailing Enterprise that have otherwise received permission from the electricity industry regulatory authority.
The Electricity Generating Equipment and Renewable-Energy-Based Electricity Retailing Equipment shall apply to the electricity industry regulatory authority for permission to suspend the business by submitting a business suspension plan. The period of suspension shall not exceed one year.
An Electricity Enterprise shall apply to the electricity industry regulatory authority for permission to terminate the business by submitting a business termination plan, and return the Electricity Enterprise license to the same regulatory authority for cancellation within 15 days of the termination of business. The electricity industry regulatory authority may proceed to cancel the license if the Electricity Enterprise fails to submit the license within the prescribed time limit.
Article 20
In the case of the suspension, termination of an Electricity Enterprise, or an Electricity Enterprise that fails to extend the Electricity Enterprise license pursuant to Article 17 before it expires, or an Electricity Enterprise that is ordered to suspend business operation or has its license revoked, the electricity industry regulatory authority may coordinate to have other Electricity Enterprise take over the operation to ensure the continuous service. When the coordination fails, the regulatory authority may use the Electricity Facilities to continue the services. Reasonable remunerations shall be made for the use of the Electricity Facilities of the Electricity Generating Enterprise.
When the coordination described in the previous paragraph fails and the Electricity Facilities of the Electricity Generating Enterprise cease to supply electricity, the Electricity Transmission and Distribution Enterprise shall dispatch the sources of supply to ensure continuous services. The Electricity Generating Enterprise shall pay the electricity dispatching service fees. The Electricity Transmission and Distribution Enterprise may also charge the users at the original rate for electricity.
Article 21
Electricity Enterprises that intend to undertake mergers and acquisitions, in accordance with the Business Mergers and Acquisitions Act, shall apply to the electricity industry regulatory authority for written approval by submitting a merger plan, jointly written by the parties to the merger, which states the scope of business, assets, liabilities and the amount of capital of the company after the merger.
For a merger of a certain scale, the electricity industry regulatory authority shall work in conjunction with the Fair Trade Commission to review the merger of the Electricity Enterprises, hold public hearings in compliance with the hearing procedure prescribed in the Administrative Procedure Act, and perform administrative investigation and professional assessment within its powers.
The definition of the “certain scale” is subject to the electricity industry regulatory authority’s announcement.
Article 22
Article 13 and Article 15 apply mutatis mutandis to the change of the sources of energy, system capacity and address of the Major Power Generation Equipment as specified on the Electricity Generating Enterprise license. An Electricity Generating Enterprise shall observe the requirements and carry out the procedure accordingly before the changes become effective.
For an Electricity Generating Enterprise that is ordered to stop the work due to violation of the laws and regulations, the electricity industry regulatory authority may revoke the whole or a part of its original license.
Unless the Act specified otherwise, an Electricity Enterprise whose information specified on the Electricity Enterprise’s license has changed shall apply to the electricity industry regulatory authority for replacement of an updated license within 30 days after the registration of the change(s).
Article 23
For an Electricity Enterprise that takes abusive conducts by its market power to interfere with the order of the trade and has received disciplinary actions from the competent authority, the electricity industry regulatory authority may check its operation details and order it to propose a correction plan within a given time limit.
The electricity industry regulatory authority may revoke an Electricity Enterprise’s license when one of the following events occurs:
1. An Electricity Enterprise takes abusive conducts by its market power to interfere with the order of the trade and has been found guilty of such wrongdoing by the courts.
2. An Electricity Enterprise has committed the wrongdoings described in the previous paragraph, and has been ordered by the electricity industry regulatory authority to propose a correction plan within a given period, but did not propose one upon expiration of such time limit or failed to correct the wrongdoings by the assigned date.
3. A government agency that orders an Electricity Enterprise to terminate the business for violation of the law informs the electricity industry regulatory authority of such disciplinary action.
Article 24
The electricity industry regulatory authority shall establish the application procedures, document requirements and review criteria governing the application of the permit to build or expand the infrastructure of an Electricity Enterprise, work permit, issuance of a license, replacement of a license, information to be specified on the license, extension, change of the power generation equipment, suspension of business, termination of business, and merger and acquisition of business.