Integrating China's energy management supervision and functions, which are currently spread across several government agencies, is a key goal of a proposed national energy commission. But giving energy overseers high-ranking status is not.

The plan to create the energy commission, which would answer to the National Development and Reform Commission (NDRC), was unveiled at the 11th National People's Congress, which convened in Beijing for a two-week session since March 5.

Restructuring energy supervision would be part of a broad reshuffling of ministries under the State Council. The energy commission would be formed at the vice-ministerial level, above what's now an energy bureau attached to the NDRC.

Yet, when compared with plans for institutional changes linked to restructuring of China's transportation and industry sectors, the energy sector reform plan is weaker than expected.
   
The new commission would integrate all energy-related institutions and functions controlled by the NDRC, the entire National Energy Leading Group (NELG), and the nuclear power management office of the Commission of Science, Technology and Industry for National Defense. The government would disband NELG -- which was set up in 2005 to integrate energy sector planning -- and its executive organs.

By forming a national energy commission, a single government department would assume responsibility for uniform enactment of energy policies and programs.

But the proposal has fallen short of expectations by failing to call for creating a full-fledged ministry of energy under the State Council.

Wu Zhonghu, an NELG specialist, told Caijing that the commission would enjoy more independence than previous energy agencies. Zhou Dali, chairman of the Energy Research Institute, a think tank affiliated with NDRC, also noted that personnel and management duties would be expanded through energy management consolidation.

But Zhou noted that "energy prices will continue to be a thorny matter."According to an explanation given by the State Council's secretary-general at an NPC hearing, the new national energy commission would be responsible for studying and drafting an energy development strategy. It would also consider energy security and development issues, while a national energy bureau under NDRC would be established as a standing body to handle the commission's day-to-day work.

According to the official news agency Xinhua, NELG expert Ye Rongsi, who has been engaged in the drafting of a new energy law, said a key challenge concerns how to promote the reform of the energy pricing mechanism.
 
Zhou said energy sector management and supervision is complex, and that more patience will be needed before an institutional overhaul can be completed.

"On one side, we must strengthen our macroeconomic control,"Zhou said. "On the other, we must divide roles with NDRC.”