3.2 The Energy Administration
System
3.2.1 Current Developments
In general, China’s energy administration system
has become relatively centralised in the upstream
and midstream sectors, with coordinated administration now a regular practice. Energy regulation and policies are becoming increasingly
important, although it is still difficult to distinguish between regulation and intervention.
Energy planning is gradually transitioning to a
market-oriented system from a planned economy
approach. Energy strategies are increasingly
valued and the energy reserve system is undergoing improvement.
(1) Centralisation of upstream and midstream
energy administration
Gradually, China’s energy administration has
shifted from a decentralised to a relatively centralised format.
The National Energy Administration (NEA) is
China’s most important energy administration
body. As a national vice-ministerial organisation
under the National Development and Reform
Commission (NDRC), the NEA oversees such
key energy sectors as power, coal, oil, natural
gas, nuclear power and renewable energy. Its
main responsibilities include: (i) preparing drafts
of energy-related laws and regulations, formulating and implementing energy development
strategies, plans and policies, promoting and
drafting energy system reform, and coordinating
major issues in energy development and reform;
(ii) engaging the relevant personnel to develop
energy industry policies and related standards,
and approving fixed-asset investment projects in
the energy industry; (iii) guiding and promoting
technological progress in the energy sector;
(iv) managing nuclear power development,
including the development and implementation
of plans and standards, carrying out nuclear
power-related R&D and organising emergency
management of nuclear power plants; (v) taking
charge of energy conservation and ensuring
comprehensive resource use in the energy
industry; (vi) conducting energy forecasting,
releasing information and participating in operational coordination and emergency preparations;
(vii) supervising and regulating the power market; (viii) licencing, supervising and managing
power production safety, reliability and emergency response; (ix) taking the lead in promoting
international energy cooperation, and reviewing
or approving major overseas energy investment
projects; and (x) participating in energy policymaking in areas such as resources, finance and
taxation, environmental protection, climate
change, and making recommendations on energy
pricing and imports and exports.
The NEA has 12 departments and employs
240 executive staff, including 42 leaders.
The NEA departments and their main responsibilities are listed in Table 3. The NEA’s internal
organisational integration involves two major
changes.
First, Market Supervision and Electric Power
Safety have become two new departments.
Electric Power Safety covers the responsibilities
of the former State Electricity Regulatory Commission (SERC), and Market Supervision
expands the responsibilities of Electric Power
Safety to include new energy, coal and oil and
gas, as well as promoting market-oriented energy
development. Thanks to the responsibilities
added by the new Market Supervision department, the NEA will gradually play a dominant
role in energy system reform and the formation
of an energy market.
Second, the former Policies and Regulations
functions of the NEA and SERC have been
combined to form Legal and Institutional
Reform, which is mainly responsible for research
on major issues in energy law, regulations,
supervision and institutional reform.
China’s local energy administration system
comprises two levels—six regional energy
bureaus and 12 local energy offices. However, as
the local energy administration system was
formed by merging the electricity regulatory
agencies under the former SERC into the NEA,
the main responsibility of China’s regional
Special Report 4: China’s Energy System Revolution
427
System
3.2.1 Current Developments
In general, China’s energy administration system
has become relatively centralised in the upstream
and midstream sectors, with coordinated administration now a regular practice. Energy regulation and policies are becoming increasingly
important, although it is still difficult to distinguish between regulation and intervention.
Energy planning is gradually transitioning to a
market-oriented system from a planned economy
approach. Energy strategies are increasingly
valued and the energy reserve system is undergoing improvement.
(1) Centralisation of upstream and midstream
energy administration
Gradually, China’s energy administration has
shifted from a decentralised to a relatively centralised format.
The National Energy Administration (NEA) is
China’s most important energy administration
body. As a national vice-ministerial organisation
under the National Development and Reform
Commission (NDRC), the NEA oversees such
key energy sectors as power, coal, oil, natural
gas, nuclear power and renewable energy. Its
main responsibilities include: (i) preparing drafts
of energy-related laws and regulations, formulating and implementing energy development
strategies, plans and policies, promoting and
drafting energy system reform, and coordinating
major issues in energy development and reform;
(ii) engaging the relevant personnel to develop
energy industry policies and related standards,
and approving fixed-asset investment projects in
the energy industry; (iii) guiding and promoting
technological progress in the energy sector;
(iv) managing nuclear power development,
including the development and implementation
of plans and standards, carrying out nuclear
power-related R&D and organising emergency
management of nuclear power plants; (v) taking
charge of energy conservation and ensuring
comprehensive resource use in the energy
industry; (vi) conducting energy forecasting,
releasing information and participating in operational coordination and emergency preparations;
(vii) supervising and regulating the power market; (viii) licencing, supervising and managing
power production safety, reliability and emergency response; (ix) taking the lead in promoting
international energy cooperation, and reviewing
or approving major overseas energy investment
projects; and (x) participating in energy policymaking in areas such as resources, finance and
taxation, environmental protection, climate
change, and making recommendations on energy
pricing and imports and exports.
The NEA has 12 departments and employs
240 executive staff, including 42 leaders.
The NEA departments and their main responsibilities are listed in Table 3. The NEA’s internal
organisational integration involves two major
changes.
First, Market Supervision and Electric Power
Safety have become two new departments.
Electric Power Safety covers the responsibilities
of the former State Electricity Regulatory Commission (SERC), and Market Supervision
expands the responsibilities of Electric Power
Safety to include new energy, coal and oil and
gas, as well as promoting market-oriented energy
development. Thanks to the responsibilities
added by the new Market Supervision department, the NEA will gradually play a dominant
role in energy system reform and the formation
of an energy market.
Second, the former Policies and Regulations
functions of the NEA and SERC have been
combined to form Legal and Institutional
Reform, which is mainly responsible for research
on major issues in energy law, regulations,
supervision and institutional reform.
China’s local energy administration system
comprises two levels—six regional energy
bureaus and 12 local energy offices. However, as
the local energy administration system was
formed by merging the electricity regulatory
agencies under the former SERC into the NEA,
the main responsibility of China’s regional
Special Report 4: China’s Energy System Revolution
427