The National Energy Administration (NEA) has officially started operation, the National Development and Reform Commission (NDRC), China’s top economy planner, announced on its website. The State Council, China's cabinet, has recently approved NEA's official responsibilities, organization and staff quota.

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 NDRC said in the announcement.

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.

The administration also has the right to approve major investment activities in overseas coal, oil, gas and power sectors, according to the announcement.

Under the nine departments, the oil and natural gas department is in charge of supervision and management over state petroleum reserves and commercial oil reserves, apart from industry supervision, reforms and planning, outlines drafting and policies making.

Market energy sectors in China previously were administered by the State Electricity Regulatory Commission (SERC), NDRC and Ministry of Commerce.