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SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON THE SUPPORT ON URBAN GAS SUPPLY SERVICE

SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON THE SUPPORT ON URBAN GAS SUPPLY SERVICE

Article 1 (Purpose) The purpose of this Ordinance is to provide for matters regarding the support of costs incurred in installing gas supply facilities and the improvement of services under the Urban Gas Business Act, thereby facilitating urban gas supplies and contributing to improving the energy welfare and the residential environment of the energy poor.

Article 2 (Definitions) The terms used in this Ordinance are defined as follows:
1. The term "business entity" means a person licensed to engage in a general urban gas business under Article 3 (2) of the Urban Gas Business Act;
2. The term "facility levy on user households" means an advance charge to cover investment costs in gas supply facilities, which is levied by a business entity on gas users in areas with low economic feasibility and is charged in addition to the general facility levy and the cooking-only facility levy;
3. The term "area with low economic feasibility" means an area falling under Article 19 (3) 1 of the Urban Gas Business Act;
4. The term "urban gas supply costs" means costs incurred by an urban gas business entity in supplying and selling gas and conducting general management.

Article 3 (Responsibilities of Mayor) (1) In formulating an urban gas supply plan, the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") shall endeavor to preferentially reflect plans to supply urban gas to areas lacking such supply in order to save citizens without such gas access inconveniences in the daily life.
(2) The Mayor shall formulate and implement support plans every year, such as those for installing facilities to supply urban gas to areas for which it difficult to supply urban gas.
(3) The Mayor may require an urban gas business entity to make investments in line with regional characteristics in order to ensure a stable supply of urban gas and to improve services, and the Mayor may recognize such incurred costs as supply costs.

Article 4 (Fact-Finding Surveys) The Mayor may conduct fact-finding surveys on the current status of areas for which it is difficult to supply urban gas, the number of households therein, and the like in an effort to efficiently formulate and implement support plans under Article 3.

Article 5 (Details and Beneficiaries of Support) (1) The Mayor may reflect all or some of the facility levies on user households to supply costs or provide support therefor within the budget, only with respect to areas meeting all of the following conditions:
1. Areas without urban gas supplies;
2. Areas with low economic feasibility;
3. Areas to which relevant land owners' consent is granted in the case of areas where supply pipes and the like are to be installed;
4. Other matters deemed necessary by the Mayor for subsidizing the costs of installing urban gas supply facilities.
(2) Beneficiaries of the support shall be selected in order of the following priority:
1. An eligible recipient under the National Basic Living Security Act;
2. A low-income single-parent family under the Single-Parent Family Support Act (households raising a child shall have priority);
3. Senior citizens aged 65 or older (those living alone shall have priority);
4. A person of distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State;
5. A person with disabilities under the Act on Welfare of Persons with Disabilities (persons with severe disability shall have priority);
6. Other cases where support is deemed necessary by the Mayor.
(3) The Mayor shall determine the payment criteria, procedures, and methods for providing support under paragraph (1).

Article 6 (Clawback of Subsidies) In any of the following cases, the Mayor shall fully or partially recover the funds provided to cover costs:
1. Where the beneficiary receives the subsidy by fraud or other improper means;
2. All or some of the business is suspended;
3. Where the subsidy is mistakenly paid due to an error or the like.

Article 7 (Establishing and Operating Cooperative Systems) The Mayor may establish and operate cooperative systems with the heads of autonomous Gus and general urban gas business entities (referring to those who have obtained permission to conduct general urban gas business under Article 3 (2) of the Urban Gas Business Act) to efficiently implement policies for providing funds to support the costs of installing urban gas supply facilities in areas for which it difficult to supply urban gas.

Article 8 (Supervision) The Mayor may, if necessary, require public officials under his or her jurisdiction or relevant experts to inspect the progress of projects, and may take necessary administrative measures.

ADDENDUM
This Ordinance shall enter into force on the date of its promulgation.