The Electric Fence is the same as Fence , but when your are trying to cut it, it will electrocute you. (You will take 20 damage, and be sent to infirmary.)
You can still cut it, if you'll disable The Generator. It was only used in Stalag Flucht and San Pancho in the Escapists 2.
In the Escapists 2, electric fences will sparkle with electricity and shock you if you get too near.