The Rules apply to administrative penalties imposed by the National Development and Reform Commission (NDRC), National Energy Administration, and National Data Administration when acting in the name of the NDRC. The Rules are established to standardize the NDRC's discretion in administrative penalty decisions, protect the lawful rights and interests of concerned parties, and ensure that penalties correspond to the factual circumstances, nature, severity, and societal harm of the violations.

The Rules stipulate the types of administrative penalties, the applicable circumstances for different levels of discretion (including: no penalty, mitigated penalty, lenient penalty, standard penalty, and aggravated penalty), as well as the relevant procedural requirements.

At the same time, the Rules clarify that administrative penalties will not be imposed if the illegal act has not been discovered within two years. However, if the illegal act involves the safety of citizens' lives and health, financial security, and has caused harmful consequences, the time limit is extended to five years, except as otherwise provided by law.