A leading Chinese industry group has proposed the setting up of an all-encompassing energy ministry, to take control of China's energy industry, which is currently handled by various government departments.

A report released by the energy policy research center within the China Energy Society - an academic community of the country's most prominent energy researchers - says the potential redistribution of power between all those bodies could prove complicated, but that the creation of such a new super-ministry "is not only feasible, but also an urgent need".

The report suggests that the National Development Reform Commission - the country's top economic planning agency - would maintain the power to set electricity, oil, gas and coal prices, and approve new energy projects.

But that a new ministry could largely take responsibility for all other energy-related duties, currently scattered among more than 10 ministries, including the National Energy Administration, it said.

It added that the new department would be responsible for all public services, and the supervision and reform of energy-related activities. Those duties would cover the design of energy-related tax and subsidy policies, market entry approval, supervision of energy trading, and the operation of the nation's electricity, coal, oil and gas industries.

Society insiders told China Daily that while many members agreed the industry needs to be reformed in some way, more thinking was still needed on the finer details of any future plan.

One energy researcher, who asked not to be named, warned that the establishment of a new ministry may add a whole new layer of energy policy approval, which could lead to lower efficiency.

And some others in the industry suggested that such a move would make no significant difference.

"It's likely to be an empty shell, unless the new ministry could share the power with the NDRC," said Lin Boqiang, director China Center for Energy Economics Research of Xiamen University.

Industry experts have been suggesting there could well be a shift in energy policy. China needs to reform the sector, as the world's largest energy producer, consumer, and carbon dioxide emitter faces growing constraints on its resources, they said.

China formed its first energy ministry in 1988 but dissolved it in 1993 partly due to its low efficiency.

Both the UK's Department of Energy and Climate Change, and the Russian Ministry of Energy were created in 2008. The United States also has a Department of Energy.

"It's an international trend to set up an energy ministry to formulate energy policy, strengthen strategic research, and implement related strategies," said one researcher involving in drafting the report.

"When discussing any restructuring of energy agencies, the priority would be to clarify the duty scope between government and market," Fan Bi, deputy director-general of the National Policy Research Office of the State Council, told China Daily.

He added that the country's energy resources - still State-owned and controlled in China - should not be seen as products allocated by the government, and prices should be set by the market."

China still has some way to go before its energy market is market-driven, he added, and the biggest challenge is still to break the government's monopoly on energy supply.

"First, we need to judge whether there is too much or insufficient control of the energy sector. Government bodies that hinder competition should be simplified," said Fan.

He suggested the power to set delivery prices by the national power grid, and the petroleum, gas transmission pipelines, should be held by the government, which is international practice, while the rest of the power industry should be an open market.

Zhou Dadi, former director of China's Energy Research Institute under the NDRC, said it was a good idea to have a super ministry to take charge of the energy sector.

"But given its size, such a new entity would have to draw some clear lines between each of the sector's components," he said.

lanlan@chinadaily.com.cn