ACT ON THE PROMOTION OF ELECTRIFICATION IN AGRICULTURAL AND FISHING VILLAGES

Article 1(Purpose) #

The purpose of this Act is to improve the productivity of agriculture and fisheries and improve the livelihood of farmers and fishermen by promoting the supply of electricity to agricultural and fishing villages where electricity is unavailable.

[This Article Wholly Amended on Dec. 21, 2007]

Article 2(Definitions) #

The terms used in this Act shall be defined as follows:

1. The term "works for installation of independent power facilities" means works for installation of power production facilities (including works for installation of power production facilities by solar heat, wind power or other alternative energy) and works for installation of power distribution facilities (excluding works for installation of power transmission and substation; hereinafter the same shall apply) to install facilities supplying electricity (hereinafter referred to as "independent power production facilities") to an island where a power distribution business operator under subparagraph 8 of Article 2 of the Electric Utility Act (hereinafter referred to as "power distribution business operator") is unable to supply electricity;

2. The term "electricity provider" means Korea Electric Power Corporation under the Korea Electric Power Corporation Act;

3. The term "unit works" means works for installation of power distribution facilities recognized by the electricity provider as one batch of works or works for installation of independent power facilities recognized by a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, the Governor of a Special Self-Governing Province, or the head of a Si/Gun(hereinafter referred to as "head of a local government") as one batch of works, which are electric installation works performed in accordance with this Act in order to promote the supply of electricity to an area where electricity is not supplied;

4. The term "contract demand" means the maximum electric power that an electricity user may use by agreement by and between the electricity provider (In cases of an area where electricity is supplied through independent power production facilities, referring to the head of a si/gun) and an electricity user.

[This Article Wholly Amended on Dec. 21, 2007]

Article 2-2(Areas subject to application) #

In spite of the administrative district, an area subject to the application of this Act shall be an area meeting the standards prescribed by Presidential Decree as a village, most of the residents of which are engaged in agriculture and fisheries as at the time a plan for the electrification of agricultural and fishing villages under this Act is formulated.

[This Article Wholly Amended on Dec. 21, 2007]

Article 3(Financial resources for construction expenses) #

(1) Expenses incurred in works for installation of power distribution facilities and expenses incurred in works for installation of independent power facilities and expenses incurred in works for replacement of independent power production facilities in an area where the electricity provider or a person other than the electricity provider intends to supply electricity shall be covered by the following funds:

1. Financial loans;

2. Temporary shares of the electricity users in the expenses prescribed by Presidential Decree;

3. Subsidies of the State and a local government.

(2) An electricity user shall bear expenses for interior wiring works.

(3) The limit of a financial loan under paragraph (1) 1 shall be prescribed by Presidential Decree in consideration of a repayment borne by an electricity user pursuant to Article 11 and his or her capacity to bear electric charges.

(4) Subsidies under paragraph (1) 3 shall be the amount calculated by subtracting a financial loan under paragraph (1) 1 and temporary shares of the electricity users in expenses under paragraph (1) 2 from expenses incurred in works under paragraph (1), and shall be borne by the State and a local government.

(5) The apportionment of the State and a local government in subsidies under paragraph (4) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 21, 2007]

Article 3-2(Support to areas other than areas subject to application) #

Where the electricity provider or a person other than the electricity provider intends to supply electricity to an area other than an area subject to the application under Article 2-2, the State may support a financial loan under Article 3 (1) 1 (hereinafter referred to as "financial loan") for expenses incurred in works for installation of power distribution facilities and expenses incurred in works for installation of independent power facilities and works for replacement of independent power production facilities in such an area.

[This Article Wholly Amended on Dec. 21, 2007]

Article 4(Business plan) #

(1) A Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor or the Governor of a Special Self-governing Province (hereinafter referred to as the "Mayor/Do Governor") shall compile applications filed by persons who intend to use electricity supplied by the electricity provider in accordance with this Act by unit work and then send a business plan for supplying electricity to agricultural and fishing villages for the next year, by the end of March every year.

(2) The electricity provider shall compile plans submitted pursuant to paragraph (1) and prepare a business plan and funding plan for supplying electricity to agricultural and fishing villages and submit the same to the Minister of Climate, Energy and Environment by the end of March every year. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Dec. 21, 2007]

Article 5(Measures for funds) #

(1) The Minister of Climate, Energy and Environment shall examine and finalize on a business plan and funding plan for supplying electricity to agricultural and fishing villages submitted pursuant to Article 4 (2) and appropriate financial loans and State subsidies incurred therein, in the budget for the next year. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment shall send the Mayor/Do Governor and the electricity provider a business plan and funding plan for supplying electricity to agricultural and fishing villages examined and finalized on pursuant to paragraph (1), and the Mayor/Do Governor shall appropriate subsidies that he or she is to bear pursuant to Article 3 (1) 3 in the budget for the next year. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Dec. 21, 2007]

Article 6(Financing of construction expenses) #

(1) The State shall accommodate the electricity provider with a financial loan for the electricity users.

(2) The electricity users (including a person who starts to use electricity after unit work is completed) and the electricity provider under this Act shall take responsibility for the repayment of a financial loan by unit work jointly and severally.

(3) The electricity provider shall not use a financial loan for the purpose other than the purpose prescribed by this Act.

[This Article Wholly Amended on Dec. 21, 2007]

Article 7(Deposit of shares in expenses) #

(1) Where the budget is allocated pursuant to Article 5 (1), the Minister of Climate, Energy and Environment shall send the finalized business plan and funding plan for supplying electricity to agricultural and fishing villages to the competent Mayor/Do Governor and the electricity provider. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(2) Where the Mayor/Do Governor receives a business plan and funding plan for supplying electricity to agricultural and fishing villages pursuant to paragraph (1), he or she shall have the electricity users deposit temporary shares in expenses under Article 3 (1) 2 and subsidies of a local government under Article 5 (2) with the electricity provider, by unit work within two months.

(3) A person who intends to use electricity shall pay temporary shares in expenses under Article 3 (1) 2 to the head of a Si/Gun in lump sum by unit work within the period under paragraph (2), and submit the certificate thereof and a request for installation of electric facilities to the electricity provider.

[This Article Wholly Amended on Dec. 21, 2007]

Article 8(Performance of work) #

Where the electricity provider receives a financial loan, subsidies of the State and a local government and a request for installation of electric facilities under Article 7 (3), it shall start such works without delay according to the relevant business plan.

[This Article Wholly Amended on Dec. 21, 2007]

Article 9(Change of business plan) #

(1) Where the electricity provider is unable to perform works due to extenuating circumstances among the planned installation works for which the budget has been allocated under Article 5 (1), it shall report the reason therefor to the Minister of Knowledge Economy. <Amended on Feb. 29, 2008; Oct. 1, 2025>

(2) Where the Minister of Climate, Energy and Environment receives a report under paragraph (1), if he or she deems the grounds therefor appropriate, he or she may change a business plan and divert the construction expenses therefor to another unit work. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Dec. 21, 2007]

Article 10 #

Deleted. <Dec. 31, 1984>

Article 11(Period of repayment) #

(1) The electricity provider shall repay a financial loan for 30 years in equal installments and is entitled to a five-year grace period.

(2) Repayment under paragraph (1) shall be made free of interest.

(3) If necessary, the head of a local government may have the electricity provider report the results of repayment of a financial loan.

[This Article Wholly Amended on Dec. 21, 2007]

Article 12(Collection of repayments) #

(1) The electricity provider shall collect a repayment of a financial loan from the electricity users (including a person who starts to use electricity after unit work is completed; hereinafter the same shall apply in this Article) along with electric charges when it collects monthly electric charges.

(2) The electricity provider shall collect a repayment for the relevant year by unit work, in equal portions, based on the total number of houses calculated pursuant to the following subparagraphs:

1. Up to the contract demand of three kilowatt, an electricity user shall be deemed one house;

2. Where the contract demand exceeds three kilowatt, the value given by dividing the contract demand by three kilowatt (Rounding off the fractions to two decimal places) shall be deemed the number of houses of the electricity users.

(3) The electricity provider shall repay a repayment of financial loan collected from the electricity users four times a year and report such repayment to the Minister of Climate, Energy and Environment. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(4) Where a monthly apportionment of a repayment of other electricity users exceeds a monthly apportionment of a repayment to be borne at the time of works for installation of power distribution facilities owing to giving up farming and the discontinuance of use by electricity users in an area of unit work where the electricity provider provides electricity, the electricity provider shall bear such excess first and then the Government shall reflect such excess in the budget for the next year and make up for the same.

[This Article Wholly Amended on Dec. 21, 2007]

Article 12-2(Acquisition of facilities by power distribution business operator) #

(1) A power distribution business operator shall cooperate in installation works that the electricity provider performs to supply electricity to an area where electricity is not supplied.

(2) Where the electricity provider completes the installation of power distribution facilities in accordance with this Act to promote the supply of electricity to an area where electricity is not supplied, a power distribution business operator shall acquire such power distribution facilities immediately and supply electricity. In such cases, a power distribution business operator shall acquire power distribution facilities without compensation.

[This Article Wholly Amended on Dec. 21, 2007]

Article 13(Business plan) #

The Mayor/Do Governor shall, by unit work, compile applications of persons who intend to use electricity supplied by independent power production facilities or to replace independent power production facilities, and prepare a business plan and funding plan for supplying electricity to agricultural and fishing villages for the next year and submit the same to the Minister of Climate, Energy and Environment by the end of March every year. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Dec. 21, 2007]

Article 14(Measures for funds) #

(1) The Government shall examine and finalize on a business plan and funding plan for supplying electricity to agricultural and fishing villages under Article 13 and appropriate financial loans and state subsidies incurred therein in the budget for the next year.

(2) The Minister of Climate, Energy and Environment shall send the Mayor/Do Governor and the electricity provider a business plan and funding plan for supplying electricity to agricultural and fishing villages examined and finalized on pursuant to paragraph (1), and the head of a local government shall appropriate subsidies that he or she is to bear pursuant to Article 3 (1) 3 in the budget for the next year. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025; Oct. 1, 2025>

[This Article Wholly Amended on Dec. 21, 2007]

Article 15(Sending business plan for supplying electricity to agricultural and fishing villages) #

(1) Where the budget under Article 14 (1) is allocated, the Minister of Climate, Energy and Environment shall send the competent Mayor/Do Governor and the electricity provider the decided business plan and funding plan for supplying electricity to agricultural and fishing villages. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(2) Where the Mayor/Do Governor receives a business plan and funding plan for supplying electricity to agricultural and fishing villages pursuant to paragraph (1), he or she shall inform the head of the competent Si/Gun thereof.

[This Article Wholly Amended on Dec. 21, 2007]

Article 16(Performance of works) #

Where the head of a Si/Gun is notified of a business plan and funding plan for supplying electricity to agricultural and fishing villages pursuant to Article 15 (2), he or she shall start such works without delay in accordance with such business plan.

[This Article Wholly Amended on Dec. 21, 2007]

Article 17 #

Deleted. <Oct. 6, 2005>

Article 18(Installation, management and operation of independent power production facilities) #

(1) The head of a Si/Gun shall install, manage and operate independent power production facilities, however, if he or she deems it necessary for the efficient installation, management and operation of independent power production facilities, he or she may request a person deemed appropriate for the installation, management and operation of independent power production facilities to install, manage and operate the same facilities.

(2) The head of a local government may subsidize some expenses incurred in the operation of independent power production facilities to a person who installs, manages and operates independent power production facilities under paragraph (1).

[This Article Wholly Amended on Dec. 21, 2007]

Article 19 #

Deleted. <Dec. 29, 2000>

Article 20(Support by electricity provider) #

(1) Where the head of a Si/Gun makes a request for technical support, such as design and supervision of works for installation of independent power facilities, the electricity provider shall comply with such request.

(2) The electricity provider shall make the regular round of an area where electricity is supplied with independent power production facilities and conduct regular repairs and educate persons in charge of the management and operation thereof.

(3) The electricity provider may acquire independent power production facilities according to the standards determined by the Minister of Climate, Energy and Environment and supply electricity to a collective residential area with not less than ten houses as an area where electricity is supplied by independent power production facilities after consultation with the head of the competent Si/Gun. In such cases, the electricity provider shall acquire independent power production facilities without compensation. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(4) The electricity provider shall support the total amount of expenses (excluding expenses covered by electric charges) incurred in the operation of independent power production facilities for a collective residential area with not less than ten houses (excluding an area where the electricity provider supplies electricity by taking over independent power production facilities pursuant to paragraph (3)) where electricity is supplied by independent power production facilities.

[This Article Wholly Amended on Dec. 21, 2007]

Article 20-2(Support by electric power infrastructure fund) #

The following expenses incurred by the electricity provider may be funded from the Electric Power Infrastructure Fund under Article 48 of the Electric Utility Act:

1. An excess of a repayment borne by the electricity provider and the head of a Si/Gun pursuant to Article 12 (4) or 21;

2. Expenses for technical support under Article 20 (1);

3. Expenses incurred in regular repair and education under Article 20 (2);

4. Expenses incurred in acquiring independent power production facilities and the supply of electricity pursuant to Article 20 (3) (excluding expenses covered by electric charges);

5. Expenses supporting expenses incurred in the operation of independent power production facilities pursuant to Article 20 (4).

[This Article Wholly Amended on Dec. 21, 2007]

Article 21(Provisions applicable mutatis mutandis to works for installation of independent power production facilities) #

Articles 6, 9, 11 (1) and (2) and 12 shall apply mutatis mutandis to works for installation of independent power facilities. In such cases, the "electricity provider" in Article 6 (1) and (2) shall be construed as "head of a Si/Gun", the "electricity provider" in Article 9 (1) shall be construed as "Mayor/Do Governor", "Article 5 (1)" in Article 9 (1) shall be construed as "Article 14 (1)", and the "electricity provider" in Article 12 shall be construed as "head of a Si/Gun", respectively.

[This Article Wholly Amended on Dec. 21, 2007]

Article 22(Supervision) #

(1) The Minister of Climate, Energy and Environment may supervise the use of a financial loan and the progress of works for installation of power distribution facilities and works for installation of independent power facilities, and he or she may order the correction thereof, if necessary. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>

(2) Where the head of a local government deems it necessary, he or she may request the electricity provider to report the use of a financial loan and the progress of works for installation of power distribution facilities.

[This Article Wholly Amended on Dec. 21, 2007]

Article 23(Relationships with other Acts) #

This Act shall not exclude the application of the Electric Utility Act.

[This Article Wholly Amended on Dec. 21, 2007]