'Unresolved Issues' Stopped Creation of Energy Ministry

'Unresolved Issues' Stopped Creation of Energy Ministry, Ex-NEA Head Says - Caixin | In an August 12 interview with state-backed People's Daily Online, Zhang Guobao, spoke about why an energy ministry was not included in the recent efforts to restructure the government, despite the hopes of many in the public that such an entity would strengthen supervision of the massive sector. ...For instance, energy issues involved partnerships with other countries, which would require the assistance of the Ministry of Foreign Affairs, Zhang said. Meanwhile, development of mining resources involves issues related to land management and the environment, which requires coordination with other authorities. Should a ministry come to pass, Zhang said, it should not be involved in managing prices for energy. "There must be an independent third party for setting prices," he said. ...Under government reform plan launched in March, the former electricity regulator, the State Electricity Regulatory Commission, was merged into the NEA. The latter is under the National Development and Reform Commission (NDRC), the country's top economic planner. The State Council, the country's cabinet, said the NEA will organize and implement a development strategy for the energy sector. It will also study and propose reform suggestions and supervise energy industries. The NEA has authority over project approvals, but price management is still partly controlled by the NDRC. Some have argued this has created a vague division of responsibilities for pricing supervision.