The State advocates the exploitation of rural hydropower resources,

　　the construction of medium and small size hydropower stations to promote

　　rural electrification.

　　The State encourages and supports rural areas to utilize solar energy,

　　wind energy, geothermal energy, biomass energy, and other energy

　　resources to develop rural electric power sources and to increase the

　　rural power supply.

　　Article 49

　　The local people's governments at and above the county level and their

　　comprehensive economic departments, when allocating electricity quotas,

　　shall guarantee the proper proportion of electricity for rural and

　　agricultural utilization, and give priority to the electricity for rural

　　floodwater drainage, combat of drought, and seasonal agricultural

　　production.

　　Electric power enterprises shall comply with the allocation of

　　electricity as set forth in the preceding section, and shall not reduce

　　the quotas for rural and agricultural utilization.

　　Article 50

　　The electricity price for agriculture shall be set in accordance with

　　the principles of "cost compensation" and "marginal profit".

　　The price of electricity utilized by farmers and by local urban

　　residents for their living shall be gradually unified.

　　Article 51

　　The regulation on management of electric power for agricultural and

　　rural utilization shall be worked out by the State Council.

　　Chapter VII Protection of Power Facilities

　　Article 52

　　No unit or individual may harm electricity generation, substation and

　　electric power line facilities as well as their relevant auxiliary

　　facilities.

　　Any explosion operations that are conducted in the vicinity of power

　　facilities, and other work that might endanger the safety of power

　　facilities, shall be in accordance with regulations of the State Council

　　concerning the protection of power facilities, conducted only after

　　approval and definite measures for ensuring the safety of the power

　　facilities are taken.

　　Article 53

　　The administrative department of electric power shall, according to

　　the regulations of the State Council concerning the protection of power

　　facilities, set up signs in power facility protection areas.

　　No unit or individual may construct any buildings or other

　　constructional structures, plant vegetation, or place objects which might

　　endanger the safety of power facilities within power facility protection

　　areas demarcated according to law.

　　Vegetation that imperils the safety of power facilities but was

　　planted before the area was demarcated according to law as a power

　　facility protection area, shall be trimmed or cut.

　　Article 54

　　In power facility protection areas demarcated according to law, units

　　or individuals may carry out operations that might endanger the safety of

　　the power facilities only after approval of the administrative department

　　of electric power and definite safety measures have been taken.

　　Article 55

　　If power facilities and public projects, afforestation projects or

　　other projects obstruct one another in the process of construction,

　　reconstruction and expansion, the units involved shall begin operations

　　only after consultation in accordance with the State's relevant

　　regulations and reaching an agreement.

　　Chapter VIII Supervision and Inspection

　　Article 56

　　The administrative department of electric power shall supervise and

　　inspect the implementation of the electricity laws and the administrative

　　regulations by electric power enterprises and users.

　　Article 57

　　If needed, the administrative department of electric power may staff

　　electric power supervisory and inspective personnel.

　　Electric power supervisory and inspective personnel shall be impartial

　　and honest, enforce laws justly, be familiar with the electricity laws and

　　regulations, and master relevant specialized electric power techniques.

　　Article 58

　　When electric power supervisory and inspective personnel perform their

　　duties, they shall have the rights to ascertain the implementation of the

　　electricity laws and the administrative regulations by electric power

　　enterprises and users, scrutinize relevant documents, and have the

　　authority to enter the spots for inspection.

　　The electric power enterprises and users shall provide all convenience

　　to electric power supervisory and inspective personnel who are on duty.

　　When carrying out supervision and inspection, electric power

　　supervisory and inspective personnel shall present proper identification.

　　Chapter IX Legal Responsibility

　　Article 59

　　Electric power enterprises or users who break the power supply and

　　utilization contract and thereby cause the other party contractual losses

　　shall be liable for compensation according to law.

　　Electric power enterprises, in violation of the provisions of Article

　　28 or Section 1 of Article 29 of this law, that do not ensure the quality

　　of power supply or interrupt the power supply without prior notice to

　　users and thereby cause users losses, shall be liable for compensation

　　according to law.

　　Article 60

　　Electric power enterprises that cause users or the third party losses

　　or damages because of electric power operation fault shall be liable for

　　compensation according to law.

　　Electric power enterprises are exempt from compensation liability if

　　an electric power operation fault is caused by one of the following

　　factors:

　　(1) force major;

　　(2) the user's own fault.

　　If losses or damages are caused to electric power enterprises or other

　　users because of the fault of a user or the third party, the user or the

　　third party causing the losses shall be liable for compensation according

　　to law.

　　Article 61

　　For those who violate the provisions of Section 2 of Article 11 of

　　this law by illegally occupying or utilizing the land for substation

　　facilities, transmission line corridors, and cable channels, the local

　　people's governments at and above the county level shall order them to

　　rectify within a given time period; if a rectification is not made within

　　the specified time, the obstacles shall be forcefully eliminated.

　　Article 62

　　For those electric power construction projects that violate the

　　provisions of Article 14 of this law by conflicting with the power

　　development planning or industrial policy, the administrative department

　　of electric power shall order them to stop the construction of the

　　project.

　　Those electric power construction projects that violate the provisions

　　of Article 14 of this law by utilizing electric power equipment or

　　technology declared obsolete by formal decree of the State, the

　　administrative department of electric power shall order them to stop the

　　use of such equipment or technology, confiscate the obsolete electric

　　equipment and impose a fine of up to 50000 yuan.

　　Article 63

　　For those who violate the provisions of Article 25 of this law by

　　supplying electricity or changing the service area without permission, the

　　administrative department of electric power shall order them to rectify,

　　confiscate any illegal gains, and impose a fine of up to five times the

　　amount of any illegal gains.

　　Article 64

　　For those who violate the provisions of Article 26 or Article 29 of

　　this law by refusing to supply electricity or by interrupting power

　　supply, the administrative department of electric power shall order them

　　to rectify, and give a disciplinary warning; if the case is serious, an

　　administrative penalty shall be imposed upon the involved person in charge

　　and those persons who bear direct responsibility.

　　Article 65

　　For those who violate the provisions of Article 32 of this law by

　　endangering the safety of power supply and utilization or by disturbing

　　the order of power supply and utilization, the administrative department

　　of electric power shall order them to rectify and give them a warning. If

　　the case is serious or in case of refusing to make rectification, the

　　administrative department of electric power may suspend their power supply

　　and impose a fine of up to 50000 yuan.

　　Article 66

　　For those who violate the provisions of Article 33, Article 43 or

　　Article 44 of this law by charging users electricity fees that are not

　　based on the price approved by the State or that are not based on the

　　records of the electricity meters; or those who exceed their authority in

　　setting electricity prices or in charging other fees, the pricing

　　administrative department shall give them a warning, order them to return

　　the fees and charges collected illegally, and may impose a fine of up to

　　five times the amount of the fees and charges collected illegally. If the

　　case is serious, an administrative penalty shall be imposed upon the

　　involved person in charge and those persons who bear direct

　　responsibility.

　　Article 67

　　For those who violate the provisions of Section 2 of Article 49 of

　　this law by reducing the quota for agricultural and rural utilization, the

　　administrative department of electric power shall order them to rectify.

　　If the case is serious, an administrative penalty shall be imposed upon

　　the involved person in charge and those persons who bear direct

　　responsibility. If losses are thereby caused, the violator shall be

　　ordered to make the compensation.

　　Article 68

　　For those who violate the provisions of Section 2 of Article 52 or

　　Article 54 of this law by carrying out operations in the vicinity of the

　　power facilities or in a power facility protection area demarcated

　　according to law without