I. Document Overview

(I) Legislation and Scope of Application

1. Formulation Basis: Formulated in accordance with laws and regulations including the Work Safety Law and the Electricity Regulation Ordinance. It consists of 6 chapters and 38 articles, specifying statutory judgment clauses for 10 major categories of major hidden dangers.

2. Applicable Entities: All types of power production and operation enterprises covering thermal power, hydropower, wind power, photovoltaic & energy storage, power grid transmission and transformation, and power engineering construction. Where special regulations on fire protection, hazardous chemicals and special equipment hidden dangers exist, such special provisions issued by the National Development and Reform Commission shall prevail.

3. Division of Powers and Responsibilities

(1) Power Enterprises: Subject to the main responsibility for hidden danger investigation and rectification; the principal person-in-charge of the enterprise shall be the primary person responsible;

(2) Regulatory Authorities: The National Energy Administration, its dispatched institutions and local competent power departments shall perform supervision, listed supervision and administrative law enforcement duties.

(II) Statutory Definition of Major Hidden Dangers

A major hidden danger refers to unsafe issues including equipment defects, illegal operations, environmental deficiencies and management loopholes arising from missing or failed safety control, which are highly likely to trigger large-scale power outages, mass casualties or heavy property losses, as released on the official website of the Chinese Government.

II. Checklist for Judgment of Ten Categories of Major Accident Hidden Dangers (Core Content for Publicity & Implementation)

(I) Hidden Dangers of Power Grid Transmission and Transformation Equipment

1. Setting values of stability control systems for 330kV and above inconsistent with on-site equipment or not set in accordance with power grid operation modes;

2. Long-term unrectified hidden dangers of mountain fires and external force damage on key cross-regional power transmission corridors;

3. Core equipment such as main transformers and key lightning arresters operating with excessive test indicators without shutdown for disposal.

(II) Hidden Dangers of Thermal Power Generating Units

1. Main steam valve jamming, failed overspeed protection test without emergency control measures;

2. Illegal plugging of high-temperature and high-pressure pressure pipelines under pressure without shutdown for rectification;

3. Excessive corrosion and damage to steel structures of boilers, coal conveying systems, desulfurization and denitrification facilities.

(III) Hidden Dangers of Hydropower Stations and Flood Control Facilities

Failure to meet flood control elevation standards for powerhouses, unopenable and unclosable flood discharge gates, invalid water inundation alarm systems for powerhouses, or failure to complete regular safety registration of dams shall all be deemed major hidden dangers.

(IV) Hidden Dangers of Ash Storage Yards

Dam sliding and leakage, ash stacking exceeding designed storage capacity, illegal blasting and quarrying around dam bodies, and failure to conduct regular safety assessments.

(V) Hidden Dangers in Power Infrastructure Construction and Maintenance Operations

1. Illegally compressing reasonable construction periods, illegal subcontracting and project transfer;

2. Starting construction of high-risk major projects without special plans or expert demonstration;

3. Carrying out high-risk operations including confined space work, hot work and live-line adjacent work without approval or on-site guardians.

(VI) Hidden Dangers in Project Quality Management

Critical defects in survey and design, grid connection and commissioning without completion acceptance, and dereliction of supervision duties and fraud by supervision units.

(VII) Cybersecurity Hidden Dangers of Power Industrial Control Systems

Lack of safety isolation for monitoring systems of 500kV and above power stations and regional power grids, and illegal connection of industrial control equipment to the public Internet.

(VIII) Hidden Dangers of Nuclear Power Conventional Island Equipment

Failure of key main protection systems of the conventional island, and missing unavailable important backup systems.

(IX) Hidden Dangers of New Energy Stations (Wind, PV & Energy Storage)

Large-scale wind, photovoltaic and energy storage stations of 220kV and above failing to meet low/high voltage ride-through and reactive power support requirements, and operating with grid connection without completing grid connection tests.

(X) General Safety Management Bottom-line Hidden Dangers

Undertaking special operations without valid certificates, refusing to suspend production for rectification of major hidden dangers, missing formalities for simultaneous design, construction and commissioning of safety facilities, and failure to compile or conduct drills for emergency response plans.

III. Closed-loop Governance Management Process for Major Hidden Dangers

(I) Self-inspection and File Establishment

Enterprises shall conduct regular full-site hidden danger investigations. Special ledgers shall be established separately for major hidden dangers, specifying hidden danger locations, problem descriptions, persons responsible for rectification, rectification funds, rectification time limits and temporary control measures. Ledgers shall be permanently filed for inspection.

(II) Timely Reporting within Time Limit

Enterprises discovering major hidden dangers through self-inspection shall submit written reports to local energy regulatory authorities within 3 working days; dam-related hidden dangers shall be copied to dam safety supervision institutions simultaneously. Late reporting or concealment shall result in legal penalties, as released on the official website of the Chinese Government.

(III) Rectification and Control

1. Immediately shut down units, suspend construction and evacuate personnel for hidden dangers that cannot guarantee safety;

2. Implement the workflow: formulate special governance plans → construction & rectification → internal acceptance → third-party assessment → account closure for closed-loop management;

3. Submit monthly rectification progress for hidden dangers requiring cross-cycle rectification, subject to listed supervision by regulators.

(IV) Re-inspection and Account Closure

Production and operation can only be resumed after full rectification, qualified acceptance and complete supporting documents.

IV. Administrative Law Enforcement and Penalty Provisions

1. Failure to truthfully record hidden danger ledgers or inform employees: ordered to rectify within a time limit, with a maximum fine of RMB 100,000; suspension of production for rectification if overdue, together with a fine of less than RMB 200,000, and a fine of RMB 20,000–50,000 for the person-in-charge, as released on the official website of the Chinese Government.

2. Refusal to eliminate major hidden dangers: ordered to eliminate within a time limit, with a maximum fine of RMB 50,000 for the enterprise; refusal to implement production suspension and rectification orders will result in a fine of RMB 50,000–100,000 for the person-in-charge, and suspected crimes shall be transferred to judicial organs for accountability, as released on the official website of the Chinese Government.

V. Enterprise Implementation Work Plan

Phase 1: Pre-implementation Preparation (From Now – June 30, 2026)

1. Tiered publicity and training for all staff: management, safety administrators, operation & maintenance personnel and outsourced construction workers shall conduct item-by-item benchmarking against Decree No. 41;

2. Full-plant comprehensive hidden danger self-inspection, rectify existing major hidden dangers within a time limit, and implement production suspension control for those unable to be rectified immediately;

3. Revise enterprise hidden danger management systems, ledger templates and reporting & approval workflows.

Phase 2: Regular Normalized Implementation (Starting July 1, 2026)

1. Conduct special hidden danger inspections against Decree No. 41 every month;

2. Electronically archive hidden danger ledgers to realize full-chain traceability covering inspection, reporting, rectification and account closure;

3. Incorporate hidden danger governance performance into department and post performance appraisal.

VI. Implementation Requirements for Regulatory Authorities

1. Local regulatory authorities shall organize full-coverage publicity and training for power enterprises within their jurisdiction;

2. Special power safety inspections in the second half of 2026 shall take Decree No. 41 as the sole statutory judgment basis;

3. Implement listed supervision with detailed major hidden danger lists and monthly notification of rectification completion status.