China's newly-established National Energy Administration (NEA) has begun operation, according to sources with the National Development and Reform Commission (NDRC), the country's top planning body to which NEA is attached to.

The State Council, China's cabinet, has recently approved NEA's official responsibilities, organization and staff quota, the sources said.

Its establishment, a significant move amid plans for the reform of State Council organs, aimed at strengthening the centralized management of energy sectors, dealing with the worsening energy issues both at home and abroad, and ensuring the sustainable and steady development of the national economy.

Market energy sectors in China previously were administered by the State Electricity Regulatory Commission (SERC), NDRC and Ministry of Commerce (MOC). In the long term, this led to administrative inefficiency and unreasonable energy resource allocation, energy analysts interpreted.

The new institution consists of nine departments, with 112 personnel. Its main responsibilities include drafting energy development strategies, proposing reform advice, implementing management of energy sectors, putting forward policies of exploring new energy and carrying out international cooperation, among others.

The energy price management is also clearly defined. The administration will bring forward suggestions upon energy product prices and submit to the NDRC and then to State Council for approval. Any price adjustment of energy products made by the NDRC will go to the NEA for advice.

(Xinhua News Agency July 30, 2008)