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Chapter Law Content

Title: Natural Gas Enterprise Act CH
Category: Ministry of Economic Affairs(經濟部)
Chapter 5 Management
Article 28
Natural gas utility enterprises should contract with their suppliers, prescribing mutual obligations, gas supply calorific value, pressure, supply amount, metering point, pricing methods, and other items abided by both parties.
If necessary, the authorities may ask natural gas utility enterprises to offer the content of contract prescribed in the preceding Section.
Article 29
Natural gas utility enterprises should refer items regarding their services in the Articles of Operation and receive the approval from authorities of the municipal government or the county (city) governments before carrying them into effect. Authorities of the municipal government or the county (city) governments should report their approval with relevant data to the central competent authorities; when the Articles of Operation are revised, the preceding paragraphs apply as of note.
Items which have to be prescribed in the Articles of Operation also models for Articles of Operation should be reviewed by the central authorities.
Natural gas utility enterprises should publicly notify their Articles of Operation approved by authorities of the municipal government or the county (city) governments, also have them published on local newspapers 10 days prior to the day they are carried into effect, and making them available at business premises for the users to inspect; when the Articles of Operation are revised, the preceding paragraphs apply.
When there are social, economic changes, and when the items prescribe in the Articles of Operation are obviously no longer appropriate, thus obstructing the realization of public interest, damaging the user’s right or interest, or obliviously unfair, the authorities may notify natural gas utility enterprises to revise the Articles of Operation within a limited period.
Article 30
Without due reasons, natural gas utility enterprises may not refuse claims to supply natural gas in their gas supply areas.
Article 31
Natural gas production or import enterprises should maintain a steady gas supply, and store sufficient supply amounts to meet their user’s demands.
Natural gas production or import enterprises should store a minimum defined days of tank capacity on their own.
The tank capacity prescribed in the preceding Section should be reviewed by the central competent authorities.
Article 32
The sell price calculation of natural gas production or import enterprise’s supply should be approved by the central competent authorities.
Before the approval is prescribed in the preceding Section, the central competent authorities should invite scholars, experts, civil groups such as consumer protection organizations and hold a review panel to review the sell price calculation method, and launch a hearing according to the Administrative Procedure Act if necessary.
When the sell price is approved according to Section 1 alters, the enterprises should publicly notify in advance and report to the central competent authorities 3 days prior the date of price alteration; if the calculations of sell price is unreasonable, the central competent authorities may order the enterprises to make proper adjustment.
The price calculation methods, cost structure, sale price, and relevant data of natural gas production or import enterprise’s supply should be kept for 5 years; the central competent authorities may inspect or ask for to offer items prescribed in the preceding paragraph if necessary therefore enterprises should not evade, obstruct, or decline.
Natural gas production or import enterprises with other business operations should establish separate accounting systems to calculate assets, revenues, costs, profits and losses respectively.
Article 33
Natural gas utility enterprises may supply natural gas to other sectors, yet should not affect the stable supply of gas to families, commercial businesses, and service sectors at the same time.
In the above case, the natural gas utility enterprise should summit to the authorities of the municipal government or the county (city) governments with the following documents, and a notification shall be transited to the central competent authority for reference.
1. Name of the users.
2. Daily peak loaded volumes.
3. Transmission and storage equipment in use.
In case of supplying natural gas to the user according to Section 1, natural gas utility enterprises should establish accounting items which calculate the profit and loss respectively, and may not perform cross subsidies or cross complements.
Article 34
For selling natural gas to families, commercial and service sector businesses, the natural gas utility enterprises shall calculate the sales prices and basic fees in accordance with the calculated regulations, and summit to the authorities of the municipal government or the county (city) governments with the relevant documents. The applications shall be transited to the central competent authority and obtained the approval from the authority before in force. Any adjustment of sales prices and/or basic fees should be processed following the above procedures.
The central competent authority has the right to order the natural gas utility enterprises to reexam the gas sales prices and/or basic fees in a time period, and following the preceding procedures to obtain the central competent authority’s approval.
The calculated regulations including the components of sales prices and basic fees, the calculating formula, the reviewing time period and the supporting data shall be ruled by the central competent authority. If necessary, the central competent authority should hold a review panel in accordance with the Section 2 of Article 32 to assist in reviewing the calculated regulations.
Before the central competent authority approve the gas sales prices and basic fees based on the section 1, it should hold a review panel in accordance with the Section 2 of Article 32 to assist in reviewing the calculations.
When the gas purchasing cost fluctuates, natural gas utility enterprises should synchronously adjust their natural gas sale price according to the amount of fluctuated cost, and report to authorities of the municipal government or the county (city) governments within 7 days from the date of adjustment. Authorities of the municipal government or the county (city) governments should notify the central competent authorities when they receive the report.
Article 35
Natural gas utility enterprises may charge fees from the users when they install natural gas pipeline equipment for families, commercial businesses and service sectors; natural gas utility enterprises should charge fees according to fee charging regulations and report to the central competent authorities via authorities of the municipal government or the county (city) governments.
Authorities of the municipal government or the county (city) governments should announce the name lists of qualified natural gas pipeline installation enterprises for users to choose from in the commission of in-building pipeline equipment installations.
Natural gas utility enterprises may not start supplying natural gas unless they complete inspections on the equipment installed by natural gas pipeline installation enterprises.
Fee charging regulation prescribes in Section 1 should be reviewed by the central competent authorities.
Article 36
In order to secure consumers’ household safety, the central competent authorities should formulate natural gas utility enterprises’ for promoting projects of computerized gas metering systems and carry out the project year by year, the computerized gas metering system should be included with functions of auto shut-down for earthquakes or below set supply pressure, linking capability, remote reading, and so on.
Article 37
Natural gas utility enterprises should maintain normal full-day gas supply; if natural gas utility enterprises encounter forces majeure or urgent accidents and regard it as necessary to suspend entire or partial gas supply over 8 hours, they should obtain approval from the central competent authorities in advance and notify their users 3 days before the date of suspension; if the gas supply suspension lasts over 7 days, natural gas utility enterprises should obtain approval from the authorities of the municipal government or the county (city) governments, and report to the central competent authorities.
When the natural gas utility enterprises suspend the gas supply due to forces majeure or urgent accidents prescribed in the preceding Section, they should report to the local government within 3 days from the date which accidents have occurred.
Article 38
When natural gas utility enterprises enlarge or replace their primary transmission and storage equipment after starting gas supply and operation, they should attach certificates prescribed in Article 10, Section 1, Sub-Section 4 after completion and reporting to the central competent authorities via authorities of the municipal government or the county (city) governments.
Article 39
When a natural gas utility enterprise merges with other businesses, all merging parties should clearly state business names, responsible persons, location of the primary branch office, paid-in capital amount, and gas supplying areas after merging in the application form, and attach merging operation projects as well as relevant documentation to request approval from the central competent authorities , and carry out the merging projects according to relevant statutes and regulations.
Article 40
When a natural gas utility operates other businesses at the same time, it should seek approval from the central competent authorities via authorities of the municipal government or the county (city) governments, and may not affect gas supply operations.
When a natural gas utility enterprise operates other businesses at the same time, it should establish an accounting system which calculates assets, revenues, costs, profits and losses respectively.
Article 41
The amount of paid-in capital of natural gas utility enterprises should not be lower than 35% of the original acquiring cost of current transmission and storage equipment. If a natural gas utility enterprise’s amount of paid-in capital is lower than the preceding amount, the paid-in capital should be increased within 3 months from the date when the fact happens.
Before natural gas utility enterprises alter their paid-in capital, they should Submit the project and request for approval from the central competent authorities via authorities of the municipal government or the county (city) governments and run the alteration procedures according to relevant statutes and regulations.
The authorities may ask for explanations of the project prescribed in the preceding Section or send staff to inspect; Public natural gas utilities may not evade, obstruct, or decline the authorities’ request for explanation or inspection.
The forms and items of the project prescribed in Section 2 should be reviewed by the central competent authorities.
Article 42
Natural gas utility enterprises’ reinvestment of other businesses may not affect their normal operation of gas supply; natural gas utility enterprises reinvesting on other businesses should report the investment items and amount to and ask for approval from the central competent authorities via authorities of the municipal government or the county (city) governments prior to any reinvestment project coming into effect.
Article 43
Natural gas utility enterprises should establish accounting system according to Accounting Standards and Regulations and stimulate Accounting Procedures Manual and report to the central competent authorities via authorities of the municipal government or the county (city) governments; when the Manual is revised, the preceding paragraph applies.
The Accounting Standards and Regulations prescribed in the preceding Section should be stimulated by the central competent authorities.
Natural gas utility enterprises should send accounting statements periodically to authorities of the municipal government or the county (city) governments and central competent authorities respectively according to accounting processing regulation prescribed in Section 1.
The central or authorities of the municipal government or the county (city) governments may ask natural gas utility enterprises to explain or send staff to inspect accounting statements prescribed in the preceding Section when they regard it as necessary, and natural gas utility enterprises may not evade, obstruct, or decline.
Article 44
Natural gas enterprises have an obligation to insure public liability insurance;the insurance coverage should be decided by central competent authorities after conferring with the Financial Supervisory Commission according to the categories and business scale of the natural gas enterprise.