Law drafted to regulate energy sector
(Shenzhen Daily/Agencies)
Updated: 2006-01-27 08:51

The government is drafting an energy law to regulate the country’s huge need for power and improve safety in its deadly coal mining industry, domestic media said Thursday.

The country has been battling acute energy shortages as its economy roars ahead at breakneck speed, seeing growth last year of 9.9 percent.

Increased power consumption, by individuals as well as industry, has left it increasingly reliant on imported oil, a situation China feels threatens its national security.

“With rapid economic growth, problems in the energy area are gradually showing up, and the complicated international environment also poses a new challenge to the security of China’s energy and economy,” according to a statement released by the country’s top planning agency, the National Reform and Development Commission (NDRC).

The drafted law would be part of a long-term strategy to increase the country’s energy reserves, improve energy efficiency and limit environmental damage from energy use, according to the NDRC statement.

NDRC said it has appointed a team of experts from 15 government departments to draft the law. The team, which has been approved by the State Council, or Cabinet, includes officials from the Ministry of Finance, the State Electric Power Regulatory Commission and the State Council’s Legislative Affairs Office.

The law would reflect China’s strategy of seeking cleaner and more stable sources of energy, Xinhua said.

China has several laws on oil, natural gas and conservation, but lacks a single regulation that reflects overall policy, Jiang Kejun, market analyst for the quasi-governmental Energy Research Institute, said.

The new law would likely stress the need for lower power consumption and cleaner sources of energy. It is also likely to detail how to increase private investment in energy industries, from nuclear to coal, Jiang said.

“If we need a bigger energy industry to supply China’s large demands, public investment will not be enough,” Jiang said.

China has the world’s largest coal market in terms of annual production, but its mines are among the deadliest, as thousands of people are killed each year in floods, cave-ins, fires and explosions. Shortages of coal needed to fire power plants have resulted in widespread brownouts in recent years, while also spurring mine operators to violate safety rules to boost production.

The new law would include regulations to protect miners, Xinhua said, without providing details.

The government also will encourage large coal mines to merge with smaller ones since big operators tend to pay more attention to work safety, according to the Xinhua report.

The agency didn’t say when the draft law would be completed. It first must be approved by the State Council and then by the legislature, which convenes its annual session in March.