It is possible for China to set up an independent energy administrative agency, which is authoritative and efficient enough to enact the proposed Energy Law, a key drafter said.

"It is possible for the country's top decision-makers to set up an energy administration. I regard such an agency as necessary to execute the future Energy Law. However, it is still uncertain what the final outcome will be," Ye Rongsi, a drafter of the Energy Law, said at the International Symposium on China's Energy Law on Friday.

The seminar was held to get international input on the drafting of China's Energy Law. The law will overarch existing energy laws and regulations. It will also address particular issues covered by existing energy rules, Ye said.

Ma Kai, minister of the National Development and Reform Commission, China's top economic planner, said it was absolutely necessary for China to come up with an overriding Energy Law, because existing laws and regulations only address individual industrial problems.

Furthermore, they were inadequate in matters relating to secure energy supply and sustainable energy development.

Ye in agreeing with Ma, said the proposed Energy Law, while laying the foundation and serving as the overarching legal framework, should also be effective and efficient to "crack specific hard nuts".

"Although the planned energy law is expected to have fundamental functions, it should also be applicable and maneuverable, embodying some key targets and standards for the industry to follow," Ye said.

"In the drafting of the law, we should quantify the specific goals wherever possible."

Ye admitted that there is debate on whether specific targets and benchmarks should be enshrined in the planned law, because many market players may fall short of the targets and standards, thereby undermining the law's authority.

Currently, there are four energy laws in China on coal, electricity, energy conservation and renewable energy. There are no laws yet governing petroleum, natural gas and nuclear energy.

Some sections of the existing laws are out of date and crucial issues, such as strategic crude reserves, are not covered, Zhang Qiong, deputy director of the Department of Legislation Affairs Office of the State Council, said.

According to Zhang, amendments to current energy laws and regulations are being carried out along with the drafting of the Energy Law to make the country's energy industry better governed.

(China Daily 04/28/2007 page10)

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