One of them is how to override the existing four laws on coal, electricity, energy conservation and renewable energy without replacing them. There are no laws yet governing petroleum, natural gas and nuclear energy.

Another is whether to have a unified national energy administration and how it should function once established.

The reform of the energy markets and their administration was also a challenge in trying to avoid too much or too little regulation, He said.

"If we write some energy-saving targets into the law, what will we do if market players fall short of those targets? If no action is taken, will not the law's authority be put into question?" He said.

Loveless said that from the US experience too much regulation from the government restricts the flexibility of the energy market.

He Yongnian said issues such as the varied interests of industries and regions had also to be taken into account.

China set up a team of experts from 15 ministry-level agencies to draft the country's energy law early last year.

(China Daily 03/03/2007 page1) 

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