A property management company in Ruian, Wenzhou, was fined over 130,000 yuan for charging electricity fees without approval for price increases.

According to “Credit China (Zhejiang),” on March 27th, a property management company in Rui’an was warned and fined over 130,000 yuan by the Rui’an Market Supervision Administration for violating the Electricity Law of the People’s Republic of China and related regulations by charging additional fees on the terminal electricity bill without obtaining the price authority’s approval for the price increase.

The entity is a wholly-owned subsidiary established by Zhejiang Weitai Machinery Co., Ltd., responsible for the daily management, investment promotion, and property operation of the Rui’an Financial Innovation Industrial Park (owned by Zhejiang Weitai Machinery Co., Ltd.). It purchased electricity from the grid in its name and implemented power supply to merchants within the park, while the park’s shared energy consumption (including central air conditioning, elevators, public lighting, etc.) was not addressed in the property fees, rent, or public revenue, but was entirely allocated to merchants through increased electricity charges.

The notice stated that based on existing evidence, from January 2024 to May 2025, the entity collected electricity fees from merchants by setting up sub-metering, charging an additional 50% of shared electricity or a fixed price of 1.0–1.1 yuan per kilowatt-hour under the name of “shared consumption + electricity loss.” It generated total electricity sales revenue of 3,360,619.76 yuan (excluding tax). During the same period, the total expenditure for purchasing electricity from the grid was 3,088,995.46 yuan (excluding tax), of which the self-consumed electricity cost of 314.72 yuan (verifiable portion, excluding tax) should be borne by the entity itself, resulting in an actual power purchase cost of 3,088,680.74 yuan for supplying electricity to merchants. Through the price increase, the entity appropriated the difference of 271,939.02 yuan between the electricity sales revenue and the actual power purchase cost that the merchants should bear, which constitutes illegal income.

Additionally, it was found that starting in June 2025, the entity reformed the charging model for power supply to the park: it stopped charging for “shared electricity” and fixed high prices, settling with merchants based on “10% above the grid benchmark electricity price,” and recorded income and expenditure monthly. From June to September 2025, the total electricity fees charged to merchants (excluding tax) were insufficient to cover the electricity purchase costs paid to the grid during the same period, resulting in a loss that the entity bore, without generating new illegal income.

On December 2, 2025, the Rui’an Market Supervision Administration delivered a “Notice of Order to Refund” (Rui Market Supervision Order Refund [2025] No. 3) to the entity, ordering it to refund the entire illegally charged amount of 271,939.02 yuan to the terminal merchants within 30 days of receiving the notice. The entity has now refunded the full amount as required and submitted the refund receipt and merchant confirmation.

In accordance with Article 66 of the Electricity Law of the People’s Republic of China and the second paragraph of Article 5 of the Administrative Punishment Law of the People’s Republic of China, the Rui’an Market Supervision Administration imposed a lighter penalty on the involved company, totaling fines and confiscated amounts of 135,969.51 yuan.

Business registration information shows that Rui’an Financial Innovation Industrial Park Investment Co., Ltd. (formerly known as Rui’an Financial Innovation Industrial Park Co., Ltd.) was established in 2013, with Ye Mouli as the legal representative. Its business scope includes engaging in investment activities with self-owned funds; property management; and leasing of non-residential real estate.