National Energy Administration: Energy reform never stops

According to Gao Shixian, director of the Energy Economics and Development Research Center at the Energy Research Institute of the National Development and Reform Commission, “The newly formed National Energy Commission is a high-level energy coordination agency. Many national energy bureaus cannot coordinate matters and can be coordinated by the National Energy Commission.”

Unlike the “Energy Department” circulated widely, the existing responsibilities of the two departments of the National Development and Reform Commission’s Energy Bureau and the National Energy Leadership Group Office will be merged into one and form a sub-ministerial organization – the National Energy Administration and the National Defense Science and Technology Industry Committee. Nuclear power management responsibilities are also incorporated into the agency.

On the afternoon of March 11th, the Fourth Plenary Session of the 11th National People's Congress held its fourth plenary session to hear State Councilor and Secretary-General of the State Council Hua Jianmin’s explanation of the State Council’s institutional reform program. According to its introduction, in addition to the formation of the National Energy Administration, the country will also set up a high-level coordination body in the energy sector, the National Energy Commission.

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The existing situation is that the function of energy management is placed in the national comprehensive economic management department - the National Development and Reform Commission, and there is an Energy Bureau within the National Development and Reform Commission. This is a division-level unit with only 30 members. In fact, the energy industry has long been in the state of supervising such as the China Electricity Regulatory Commission, the National Development and Reform Commission, and the Ministry of Commerce. Large-scale energy companies such as PetroChina, Sinopec, and State Grid Corporation of China, as well as specialized agencies such as the China Electricity Regulatory Commission, are ministerial-level or Deputy ministerial system. This has led to a long period of time, from the administrative system and management authority, the Energy Development and Reform Commission can not control these institutions or companies, let alone system coordination and deployment of resources.

Due to the long-term lack of efficient energy policies in China, the industry has always called for the establishment of the "Department of Energy." The "Energy Law" (draft for soliciting opinions) that was promulgated earlier specifically stated that "The energy authorities of the State Council shall organize and implement national energy strategies according to law, formulate and implement energy planning and energy policies, manage all energy industries in the country, and co-ordinate responsibility for the energy sector. The development and reform work.” This has strengthened the industry’s speculation that the country will establish the “Energy Ministry”.

"This institutional reform in the energy sector will undoubtedly greatly strengthen the government's comprehensive management of energy issues, help the government to consider the country's energy security and future energy strategies, and increase the efficiency of decision-making." When the meaning of the system was taken, Gao Shixian, director of the Energy Economics and Development Research Center of the Energy Research Institute of the National Development and Reform Commission, told this reporter.

Gao Shixian revealed that the National Energy Administration has a different responsibility for centralized integration of the three major departments. The National Energy Commission has a broader scope and its constituent members will cover all departments involved in the management of energy in the Ministry of Commerce and the Electricity Regulatory Commission. “This is a high level. Coordinating agency." Gao Shixian emphasized to this reporter.

However, the specific operations of the National Energy Commission and the National Energy Administration are still not clear. Zhong Jian, deputy general manager of Dongfang Oil and Gas Network, told this reporter that “in the past, large-scale enterprises took on the functions of the state departments to some extent. When formulating some energy policies, they considered the interests of enterprises more, for example, when the price of oil was upside down, To reduce the amount, this is originally a corporate behavior. It is hoped that the establishment of the National Energy Administration can change this situation and inject national interest into the management of energy."
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Han Xiaoping, chief information officer of China Energy Network, told this reporter that “the establishment of the National Energy Administration can be said to be a kind of progress, and it can be said as a kind of compromise. This is the current situation in which the country adopts a stabilization and transition plan. It is still necessary to set up the Ministry of Energy. It is also a way for the country to 'take out' the National Development and Reform Commission and the 'sector' of the Ministry of Energy."

Han Xiaoping explained that the establishment of the Ministry of Energy will involve many departments, including the Environment Department, the Ministry of Land and Resources, the State Electricity Regulatory Commission, the State-owned Assets Supervision and Administration Commission, and so on. “There are too many involved ministries, more resistance, and the major power companies are not willing to have one more” On the other hand, if the Ministry of Energy is established, the functions of the NDRC will surely change and become more macro-control."

Gao Shixian stated that the energy reform never stops, but the end point is not necessarily the establishment of the Ministry of Energy. “The newly formed National Energy Commission is a high-level energy coordination agency. Many national energy bureaus cannot coordinate matters and can all be handed over to the national energy. The committee coordinates." Gao Shixian said.

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