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Chapter Law Content

Title: The Electricity Act CH
Category: Ministry of Economic Affairs(經濟部)
Chapter 5 Business Operation
Article 45
The electricity generated by an Electricity Generating Enterprise may only be sold to an Electricity Retailing Utility Enterprise or to an Electricity Transmission and Distribution Enterprise as the auxiliary service. The restriction does not apply to Renewable-Energy-Based Electricity Generating Enterprise.
Renewable-Energy-Based Electricity Generating Enterprise with powerlines connecting to the power grids may turn to supply the electric power to users via the power grids.
Renewable-Energy-Based Electricity Generating Enterprise that have obtained approval from the electricity industry regulatory authority may install powerlines connecting directly to the users, to whom they supply electric energy.
For the Renewable-Energy-Based Electricity Generating Enterprise that wishes to apply for permit direct supply of electric power, the electricity industry regulatory authority shall establish rules governing the qualification, prerequisites, required documents, review criteria and other related matters.
The provisions in the three preceding paragraphs become effective within a year after the publication of the amended provisions on January 11, 2017. The Executive Yuan shall decide the effective date. However, the electricity industry regulatory authority may review the status of the electric power dispatching and submits a request for postponement of the effective date to the Executive Yuan. The postponement may be requested no more than two times. The first postponement shall be a period of one year and the second one a period of six months.
Article 46
The Electricity Transmission and Distribution Enterprise shall plan, build and maintain the power grids across the country.
The Electricity Transmission and Distribution Enterprise shall not reject a user’s request for installation of networks connecting the power grids to the user’s location. The restriction does not apply when the electricity industry regulatory authority approves otherwise due to reasonable justifications.
The Electricity Transmission and Distribution Enterprise shall make the power grids available for use by Electricity Generating Enterprise or Electricity Retailing Enterprise based on the principles of fairness and openness, allowing the producers and retailers to wheeling the electric power and charge fees accordingly. Differential or favorable treatments to certain suppliers are prohibited. However, the prohibition does not apply when the electricity industry regulatory authority approves otherwise due to reasonable justifications.
The Electricity Transmission and Distribution Enterprise may charge the users for installation of networks. The charge does not apply to residential users in remote areas.
Article 47
Electricity Retailing Utility Enterprise may purchase electric power from Electricity Generating Enterprise or Self-Use Power Generation Equipment for wheeling to the users. Installation of major power generation equipment is prohibited.
Renewable-Energy-Based Electricity Retailing Enterprise may purchase electricity generated by renewable-energy-based power generation equipment for wheeling to the users. Installation of major power generation equipment is prohibited.
Electricity Retailing Utility Enterprise shall not reject a user’s request for service unless the electricity industry regulatory authority approves for reasonable justifications.
To ensure the effective implementation of the energy saving and carbon emission reduction policy, Electricity Retailing Enterprise shall draft up an annual incentive program that encourages and assists the users to save energy and submit such program to the electricity industry regulatory authority for future reference.
The electricity industry regulatory authority shall publish the annual energy saving and carbon emission reduction achievements as a result of the incentive programs instituted by the Electricity Retailing Enterprise to meet the national energy saving and carbon emission reduction goals.
Article 48
Electricity Retailing Utility Enterprise may institute a pricing system that charges the base consumption at kilowatt-hour (kWh) per month or based on the capacity required by the user.
For Electricity Retailing Utility Enterprise that charge a monthly base consumption, as described in the previous paragraph, the users are charged for their actual usage when the actual monthly usage exceeds the said monthly base consumption.
Article 49
The central competent authority shall establish the formulae that calculate the various rates of charges to be assessed by the Electricity Retailing Utility Enterprise and Electricity Transmission and Distribution Enterprise.
The Electricity Retailing Utility Enterprise and the Electricity Transmission and Distribution Enterprise shall determine the price of electricity and various charges, report the rates to the central competent authority for approval, and announce afterwards. The same process applies when the rates are amended.
The central competent authority shall hold public hearings before deciding on the formulae that calculate the price of electricity and various rates and charges as provided in the first paragraph of this Article. The same process applies when the rates are amended.
The central competent authority may invite other government agencies, scholars and experts and civil organizations of related interests to participate in the Electricity Tariff Examination Council to review and determine the price of electricity, rates and charges and other related matters.
Article 50
The Electricity Retailing Utility Enterprise shall institute a regulation governing the business operation, submit the regulation to the electricity industry regulatory authority for approval, and promulgate the same as it becomes effective. The same process applies when the regulation is amended.
The Renewable-Energy-Based Electricity Generating Enterprise and Renewable-Energy-Based Electricity Retailing Enterprise, both of which sell electric power to users, shall institute a regulation governing the business operation and submit the same to the electricity industry regulatory authority for reference within 30 days after the institution of such regulation. The same process applies when the regulation is amended.
Article 51
The users that receive service via an Electricity Transmission and Distribution Enterprise’s network shall make available a site free of charge for installation of an electricity meter.
The Electricity Transmission and Distribution Enterprise has the duty to install and maintain the electricity meter prescribed in the previous paragraph.
Article 52
The Electricity Retailing Utility Enterprise shall supply electricity to the public utilities including the water plants, electric trains and electric railways, the public and private schools at all levels, sheltered workshops, registered social welfare organizations and nursing homes at a discount rate that is below the average price of electricity but no lower than the electricity supply cost.
The Electricity Retailing Utility Enterprise shall supply electricity that services the life support systems and essential life aids in the households with people with physical or mental disabilities at the discount rate that reflects the first block of the Inclining Block Rate or the electricity supply cost, whichever is lower.
The Electricity Retailing Utility Enterprise shall supply electricity that services the street lights on public roads at the discount rate that is below the average price of electricity but no lower than half of the average rate of lighting device.
The sheltered workshops, registered social welfare organizations and nursing homes as mentioned in the first paragraph of this article are subject to the recognition and approval by the central competent authority that oversees special purpose corporations.
The central competent authority shall define the pricing of the services described in the first paragraph of this article.
The central competent authority shall work in conjunction with the competent central authority that oversees the special purpose corporations to establish the rules governing the eligibility criteria for recognition as a household with members with physical or mental disabilities, the scope of application for life support systems and essential life aids, and the calculation of the price of electricity.
Article 53
When the Electricity Retailing Utility Enterprise supply electricity at a discount rate pursuant to paragraphs 1 to 3 of the preceding article, the competent authorities that oversee the respective categories of corporations and organizations may budget to subsidize the shortfall.
Article 54
The Electricity Retailing Utility Enterprise shall ensure availability of the service around the clock. However, restrictions on the availability of the service at certain hours may be allowed when the electricity industry regulatory authority approves otherwise due to special circumstances.
Article 55
In the event of a complete or partial power suspension due to an accident not attributable to the utility electricity retailing corporation shall be reported to the competent authority at the level of the municipal government or county (city) government for approval and announce so in advance unless the interruption occurs due to an unexpected failure, in which case the report may be filed later. The competent authority at the level of the municipal government or county (city) government shall report the power suspension to the electricity industry regulatory authority for approval when the power suspension lasts for more than 15 days.
Article 56
For any unauthorized consumption of electricity, the Renewable-Energy-Based Electricity Generating Enterprise and Electricity Retailing Enterprise may calculate the loss based on the unauthorized user’s utilization equipment, type of consumption, and watts or horsepower consumed in relation to the hours of service availability and the price of electricity assigned by the supplier, and claim against the unauthorized user accordingly. The maximum compensation shall not exceed one year of service charges.
The electricity industry regulatory authority shall establish rules governing the identification, recognition, compensation criteria and the resolution of the unauthorized consumption of electricity described in the previous paragraph.
Article 57
When the government requests emergency power supply for prevention of disasters, the Electricity Generating Enterprise and Self-Use Power Generation Equipment shall give priority to supply power. The Electricity Transmission and Distribution Enterprise shall first arrange services from these sources. The requesting government agency is responsible for paying the charges of electricity usage.