Introduction
On 18 March 2024, the National Development and Reform Commission issued Order No. 14, officially promulgating the newly revised "Electricity Supply Operations Regulations" (hereinafter referred to as the "New Regulations"), which will come into effect on 1 June 2024.
The New Regulations comprise ten chapters and 110 articles. This revision adheres to the principles of legality, problem-orientation, fairness, and progressiveness. It addresses and amends content that is evidently inconsistent with current laws and regulations, misaligned with the Central Committee’s directives, and diverges from the reform trajectory. Additionally, it incorporates established national standards, requirements, and mature practical experiences relevant to electricity supply operations.
This article will interpret seven key points of the New Regulations in detail for reference.
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1. Removal of Inappropriate Monopolistic Service Charges and Outdated Terminology
The "Electricity Supply Operations Regulations" are the most significant supplementary regulations to the "Electricity Law" and the "Electricity Supply and Usage Regulations." As the fundamental regulatory framework guiding national electricity supply operations since its implementation in 1996, it has significantly contributed to the healthy, orderly, and prosperous development of the electricity market. However, with the deepening of China’s electricity sector reforms, rapid technological advancements, and substantial changes in the socio-economic and legal-political environment, the existing regulations no longer meet the evolving demands of the electricity supply and usage landscape.
Consequently, one of the key focuses of the revision is the removal of content that no longer aligns with the socialist market economy and social development requirements, as well as the elimination of previously abolished monopolistic service charges. Specifically:
1. Elimination of Planned Economy Terminology: Terms such as "quota-based electricity supply and usage," "electricity usage quotas," "re-supply quotas," and "planned electricity usage" under the planned economy system have been removed.
2. Abolition of Administrative Provisions: Provisions that granted electricity suppliers the authority to supplement the regulations, determine low-voltage supply capacity standards, and establish reward mechanisms for reporting electricity theft, which were indicative of overt administrative functions, have been deleted.
3. Removal of Abolished Monopolistic Charges: Charges related to electricity engineering fees, pre-deposit guarantees, electricity meter deposits, duplicate inspections for user receiving engineering, meter relocation fees, and meter verification fees, which were previously identified as monopolistic service charges, have been eliminated.
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2. Enhancing the Business Environment for Electricity Users and Improving Service Levels
In addition to removing outdated content, the revision emphasizes consolidating achievements in optimizing the business environment for electricity users and enhancing service levels. It integrates new requirements from electricity sector reforms and incorporates mature management practices from recent years, ensuring that the regulatory framework meets the needs of the new era. Key improvements include:
1. Consolidation of "Electricity Access" Achievements: In line with policies aimed at optimizing the business environment, the New Regulations increase the low-voltage three-phase four-wire supply capacity standard to 160 kW and the low-voltage single-phase supply capacity to 12 kW. It also reduces the time and steps required for electricity connection applications, streamlines application materials, and promotes online processing for the entire procedure.
2. Optimization of Temporary Electricity Prepayment Rules for Unmetered Users: Article 89 mandates that electricity suppliers settle temporary electricity prepayments based on actual usage days, removing the previous provision that allowed for partial refunds if usage was less than half the agreed period or no refunds if exceeded.
3. Refinement of Meter Damage and Loss Compensation Responsibilities: Article 80 modifies the responsibility for meter faults. It stipulates that if damage is caused by the user, the user bears the cost of compensation or repairs. For other causes, the electricity supplier must replace the meter at no charge.
4. Clarification of Capacity Fees for New Installations and Changes: Article 86 specifies that capacity fees are calculated monthly. For new installations, capacity expansions, changes, or terminations within a month, fees are calculated daily based on the monthly rate divided by the number of days in the month. If daily usage is less than 24 hours, it is treated as a full day. Capacity fees are not reduced for outages due to accidents, maintenance, or orderly electricity usage.
5. Removal of Design Review Stages for Non-Important Users: The New Regulations eliminate the design review and interim inspection stages for users other than significant electricity consumers and new residential complexes. They specify that electricity suppliers focus on inspecting network-related equipment during final acceptance of receiving engineering projects.
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3. Strengthening User Rights Protection
The New Regulations introduce measures to further safeguard the rights of users, particularly residential customers, enhancing their sense of security and satisfaction with electricity services.
1. Enhanced Information Transparency: Article 5(1) mandates electricity suppliers to proactively disclose policies, service standards, and complaint or supervision channels in accordance with national information disclosure regulations.
2. Improved Management of Re-supply Pricing: Article 17 prohibits the imposition of additional fees for property common areas, shared facilities, and maintenance on non-direct supply terminal users. Pricing must adhere to government-regulated electricity policies.
3. Requirements for Residential Supply Facilities:
o One Meter per Household: Article 13 requires that new residential areas implement a one-meter-per-household standard for electricity supply facilities.
o Charging Infrastructure for Fixed Parking Spaces: New residential areas must either install charging infrastructure or reserve installation conditions to meet direct metering requirements.
o Dual Power Sources for High-Rise Buildings: Article 42 stipulates that high-rise residential buildings must have dual power sources for primary loads, with emergency power sources added for special loads and strict prohibitions on connecting other loads to emergency systems. Secondary loads should ideally use dual-circuit supply lines. Additionally, new residential areas must plan the placement of distribution facilities to meet flood prevention requirements and install emergency mobile power interfaces.
4. Extended Temporary Electricity Usage Period: The allowable period for temporary electricity usage has been extended from six months to three years. Article 14 allows temporary electricity supply for non-permanent uses such as construction sites and agricultural projects, with strict conditions to prevent the misuse of temporary electricity as permanent supply.
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4. Refinement of Power Suspension Conditions and Procedures
Electricity suppliers must balance their legal obligation to ensure stable supply with their right to suspend power unilaterally under specific conditions. The New Regulations refine the circumstances and procedural requirements for power suspension, emphasising the duty to notify users in advance.
1. Revised Suspension Conditions:
o Delayed Payment: Article 69 modifies the condition for suspending supply due to unpaid bills from "arrears after notification" to "non-payment exceeding thirty days despite reminders within a reasonable timeframe."
o Electricity Theft: The condition for immediate suspension due to theft is revised to require confirmation of theft and prior notification of suspension.
2. Enhanced Notification Procedures: Articles 70 and 71 reiterate the obligations to notify users or make public announcements before suspending power, detailing the timing and frequency of such notifications.
3. Shortened Restoration Time: Article 72 reduces the required time to restore power after resolving suspension causes from three days to twenty-four hours, thereby limiting the duration of power outages and protecting user rights.
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5. Restrictions on Account Termination for Inactivity or Bankruptcy
The New Regulations impose stricter conditions on electricity suppliers regarding the termination of user accounts due to prolonged inactivity or bankruptcy without user consent.
1. Account Termination for Inactivity: Article 35 stipulates that accounts may be terminated if a user has not consumed electricity for six consecutive months and either does not meet continued usage conditions or poses safety risks, following a one-month notification or public announcement period.
2. Bankruptcy Conditions: Article 39 mandates account termination for users who are legally bankrupt and have undergone business deregistration. This adds a requirement beyond the previous condition of legal bankruptcy.
3. Removal of Previous Termination Provisions: The previous provision allowing termination if a meter could not be read due to user issues has been removed, preventing arbitrary account closures.
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6. Adjustments to Capacity Reduction and Service Suspension Procedures
In alignment with the National Development and Reform Commission’s policies, the New Regulations revise the requirements for reducing capacity and suspending services.
1. Removal of Advance Application Requirements: Article 25 eliminates the need for a five-day advance application for capacity reduction requests.
2. Distinction Between Permanent and Non-Permanent Capacity Reduction: Capacity reductions are now classified as permanent or non-permanent, with specific procedures for each:
o Non-Permanent Reductions: Unlimited in number, with each reduction lasting between fifteen days and two years. Extensions are possible within the two-year limit.
o Permanent Reductions: Require re-signing of supply contracts based on the new capacity. Complete capacity reductions lead to account termination.
3. Restoration Procedures: Users restoring capacity after non-permanent reductions must follow procedures based on the duration and prior agreements.
4. Removal of Temporary Suspension Applications: The option for users to temporarily suspend electricity usage for part or all of their equipment has been removed, along with related procedural requirements.
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7. Updates to Electricity Supply Contracts and Liability Provisions
Chapter Nine of the New Regulations addresses "Electricity Supply Contracts and Liability for Breaches," aligning with the relevant provisions of the Civil Code to reflect the equal civil status of electricity suppliers and users.
1. Contract Modification and Termination: Article 96 mandates that any changes or termination of supply contracts must comply with legal requirements. Contracts affected by changes in national laws, regulations, or policies must be adjusted accordingly. Compared to Article 94 of the original Regulations, Article 96 provides greater flexibility for legal and policy changes while respecting parties' autonomy in contract termination.
2. Limitation of Liability Clauses: Article 102 prohibits electricity suppliers from imposing liability terms that exceed the limits set by the Regulations. Suppliers cannot unilaterally increase user obligations or diminish user rights within contracts.
3. Removal of Obsolete Provisions: With the abolition of the "Measures for Handling Household Appliance Damage," the New Regulations eliminate Article 99, which previously required suppliers to address appliance damages caused by power incidents according to these now-defunct measures.
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Conclusion
The issuance of the New "Electricity Supply Operations Regulations" provides a clear institutional framework for electricity suppliers, delineating work requirements and standards. It is recommended that electricity suppliers:
1. Conduct Training and Awareness: Promptly implement training programs to educate staff on the new Regulations, ensuring accurate comprehension and application to enhance service levels continually.
2. Adjust Service Protocols: Update service standards and requirements in line with the new Regulations, and expedite the revision of management systems and optimisation of electricity application processes to ensure effective implementation.
3. Enhance Frontline Staff Training: Intensify training for frontline personnel to competently address user inquiries and resolve disputes, thereby effectively mitigating conflicts related to electricity services.
