The law, which provides the legislative basis for the establishment of a powerful new energy ministry, may not be passed until next year's gathering of the National People's Congress, the China Daily said.

Lawmakers are finding it difficult to balance the competing interests involved, the paper said, citing Dong Chaojie, a senior official with the Cabinet's Legislative Affairs Office.

China has long argued that it needs a unified bureaucracy to plan, run and supervise its energy sector.

Policies and strategies for China's energy sector are currently drawn up by the National Energy Leading Group, a State Council sub-committee set up in 2005 and led by Premier Wen Jiabao.

The initial draft of the energy law, released at the beginning of December, called for the establishment of a unified energy ministry.

The proposal would affect several existing government departments, including the National Development and Reform Commission, the Ministry of Water Resources and the Ministry of Agriculture, among many others.

Observers have said that it would be hard to persuade the departments to agree to a reallocation of budgets and staff.

"I think 2009 is the earliest possible date for the legislative body to read and vote on the draft," said the Leading Group's Ye Rongsi at a forum this week, as quoted by China Daily.

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