CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
Typical Timelines Under the Power Supply Business Rules, supply enterprises must provide supply scheme responses to end-users within three working days for low-volt- age users, ten working days for high-voltage single- source users, and 20 working days for high-voltage dual-source users. The Guidance on Deepening and Improving “Getting Electricity” Service Standards (NDRC and NEA, effective 1 July 2025) provides that the full connection process for low-voltage users should be completed within five working days where no external power line works are required, and within 15 working days where such works are required. 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities Distribution Area Designation The distribution area within which the project owner holds the exclusive right to provide distribution ser- vices is designated by the relevant local authority in accordance with the Implementation Measures for the Division of Distribution Areas for Incremental Distribu- tion Network Business. The distribution area designa- tion is a fundamental condition of the project approval and is incorporated into the Electric Power Business Licence for Power Supply. Where the project owner fails to fulfil its construction commitments or its opera- tional performance falls below the required standard, its project owner qualification may be revoked and a new owner may be selected through a fresh competi- tive process under the Notice on Further Promoting the Reform of Incremental Distribution Network Busi- ness. Construction and Service Obligations The project owner is required to complete construc- tion within the agreed timeline and provide reliable supply to all users within its distribution area on a fair and non-discriminatory basis, including a universal supply obligation. These are ongoing conditions of the licence, supervised by the NEA and its regional offices. Connection to the Public Grid The incremental distribution network must be con- nected to the public grid. The grid enterprise must provide connection services on a fair, timely and non-
discriminatory basis. Upon connection, the project owner has the same rights and obligations as grid enterprises with respect to interconnection, participa- tion in electricity markets, distributed energy connec- tion and new energy accommodation. Amendment or Relaxation of Conditions There is no dedicated standalone procedure under PRC law for amending or relaxing conditions imposed in distribution project approvals or licences. Where significant changes to approved parameters are required, the project owner must apply to the relevant approving authority for a modification. General admin- istrative reconsideration and administrative litigation channels are available where a project owner consid- ers a regulatory decision to be unlawful. 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities The mechanisms for acquiring land rights for the construction and operation of distribution facilities are substantially the same as those described in 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities in the context of transmis- sion infrastructure, and the same legal framework under the Land Administration Law, the Regulations on the Protection of Power Facilities and applicable provincial legislation governs the process, compensa- tion standards and foreign investor protections. Distribution facilities are generally smaller in scale than transmission infrastructure and are more frequently located within existing urban or industrial develop- ment areas. In the urban context, the Power Supply Business Rules and the Guidance on High-Quality Development of Distribution Networks under the New Situation provide that land and space for distribution facilities should be reserved in urban and residential development plans, and that new residential devel- opments should include pre-planned allocation of distribution facility sites. Where distribution facility land is incorporated into urban planning and reserved accordingly, the project owner typically acquires the relevant land-use rights through construction land approval procedures co-ordinated with the local plan- ning authority, rather than through the expropriation
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