The National Development and Reform Commission ("NDRC") has recently issued the Administrative Measures for Permits for Installation (Repair and Testing) of Power Facilities (the "Measures"), with effect from October 11, 2020.
The Measures stipulate that permits are categorized into those for installation, repair and testing and graded to Grade 1, Grade 2, Grade 3, Grade 4 and Grade 5. An enterprise applying for a permit shall have corporate capacity and a sound and effective work safety organization and system, and satisfy three conditions including "having net assets suitable for carrying out the installation (repair and testing) of power facilities, the proportion of which in total assets is not less than 15%". Meanwhile, the Measures clarify that an enterprise undertaking the installation (repair or testing) of power facilities shall report the relevant information to the relevant dispatched agency in accordance with the provisions when falling under any of the circumstances including "a work safety accident occurs". The Measures also point out that where an enterprise undertaking the installation (repair or testing) of power facilities has major or severer work safety accidents or major quality liability accidents when installing, repairing or testing power facilities, the dispatched agency will degrade its permit in accordance with the law, or revoke its permit in accordance with the law if the circumstances are serious.