The National Energy Administration, China's new government agency to oversee the energy sector, has formally started operations, the government said Tuesday.
The long-awaited agency is likely to become a more efficient player than the scattered bureaucracies that have so far been in charge of energy, suggesting the high priority China attaches to fuelling its economy, analysts said.
"The consolidation of the agencies signals China will focus more on … energy strategy and planning, which are crucial to the country's sustainable development in the future," said Lin Boqiang, a professor in energy economics at Xiamen University.
The State Council recently approved the agency, which will be responsible for China's energy development strategy and policies, the National Development and Reform Commission (NDRC) said in a statement.
The administration, which combines the functions of three previous energy agencies, will be tasked with governing the oil, gas, coal and power industries as well as managing state oil reserves, according to the statement posted on the NDRC's website.
It will propose adjustments to energy prices for approval by the NDRC or the State Council, and the NDRC will consult the administration if any change is to be made to energy prices, the statement said.
The agency also has the right to approve major overseas energy investment projects and will take a leading role in negotiating and signing energy agreements with foreign governments and international organisations.
China's economy has seen five consecutive years of double-digit growth, pushing the need for energy near the top of the national agenda.
A net importer of oil since 1993, its crude imports hit a record 163.17 million tonnes in 2007, up 12.4 percent over the previous year.
