Energy Community

Not to be confused with European Atomic Energy Community.

Energy Community
Contracting parties   Candidates
Membership		European Union Albania Bosnia and Herzegovina Croatia Republic of Macedonia Montenegro Serbia Moldova Ukraine Kosovo (UNMIK)
Establishment		1 July 2006

The Energy Community (also referred as Energy Community of South East Europe (ECSEE) and European Energy Community (EEC)) is a community established between the European Union (EU) and a number of third countries in order to extend the EU internal energy market to Southeast Europe and beyond. The Treaty establishing the Energy Community was signed in Athens, Greece, on 25 October 2005, and entered into force on 1 July 2006.

Aim

The Energy Community aims at establishing a common regulatory framework for energy markets in contracting parties by extending the acquis communautaire of the European Union to the territories of participating countries. It covers the relevant fields of energy, environment, and competition of the EU legislation. The Energy Community deals with electricity, natural gas, and petroleum products.

Timetable for implementation of the Treaty is the following:

• in twelve months (by 1 July 2007) implement the two EU energy market directives and the regulation on cross-border network access.
• from 1 January 2008 liberalization of the market for all non-household customers.
• by 31 December 2011 reduction in the sulphur content of certain liquid fuels.
• from 1 January 2015 liberalization of the market for all customers.
• by 31 December 2017 limitation of emissions of certain pollutants into the air from large combustion plants.

History

The Energy Community builds upon the South-East Europe Regional Energy Market for electricity and natural gas formed in the framework of the Stability Pact for South Eastern Europe through the Athens Memorandum.

Athens Memorandum

The 'Athens Memorandum' refers to the Memorandum of Understanding of 2002 and its revision of 2003, signed in Athens. It was proposed by the European Union and it outlined the principles and the institutional necessities for regional electricity market development in South East Europe. Following intense discussions, an agreement was reached at the first South East Europe Electricity Regulation Forum in June 2002. The signing of the memorandum took place in November 2002 by Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Republic of Macedonia, Romania, Serbia and Montenegro, and Turkey.

The 2003 revision added natural gas to the scope of work. Under the Athens Memorandum a South-East Europe Regional Energy Market (SEEREM) was envisioned, to form part of the EU's internal energy market. The Athens Memorandum also set up a number of institutions, which collectively are known as the 'Athens Process'. In 2004, the Athens Forum meeting decided to name the process 'Energy Community'; at the same time the location of future institutions was agreed.

Energy Community Treaty

In May 2004, the European Union open negotiations with the countries of the South Eastern European region in order to conclude a legal agreement. The negotiations took place between the European Community on one side, and Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Republic of Macedonia, Republic of Montenegro, Serbia, Romania, Turkey and UNMIK on behalf of Kosovo on the other side. The Treaty establishing the Energy Community was signed in Athens, Greece, on 25 October 2005 and entered into force on 1 July 2006. Signature of the Treaty has been approved by the European Parliament on 29 May 2006.

Participants and observers

Participants of the Energy Community Treaty are:

European Union Albania Bosnia and Herzegovina Croatia Republic of Macedonia	Montenegro Serbia Moldova Ukraine Kosovo (UNMIK)

By terms of the treaty, any Member State of EU may be represented in the Ministerial Council, the Permanent High Level Group and the Regulatory Board and participate in the discussions in these bodies and the Fora. This privilege is used by

Austria Bulgaria Cyprus Czech Republic France Germany Greece	Hungary Italy Romania Slovenia Slovakia United Kingdom

Any other neighbouring third country can participate if a reasoned request is approved by the Ministerial Council. Observers are:

Norway (Nov 2006) Turkey (Nov 2006)	Georgia (Dec 2007) Armenia (Oct 2011)

Ratification

• Kosovo (UNMIK) (UNMIK as Kosovo representative under Security Council resolution 1244) – 23.12.2005
• Bulgaria – 07.03.2006
• Albania – 24.05.2006
• Republic of Macedonia – 29.05.2006
• European Communities – 29.05.2006
• Romania – 26.06.2006
• Croatia – 30.06.2006
• Serbia – 09.08.2006
• Bosnia and Herzegovina – 20.09.2006
• Montenegro – 15.12.2006
• Moldova - 31.03.2010 (was observer since Nov 2006)
• Ukraine – 15.12.2010 (was observer since Nov 2006)

Institutions

The main institutions established or being established are:

• Ministerial Council
• Permanent High Level Group
• Energy Community Regulatory Board (ECRB)
• Fora
• Secretariat

Secretariat

The Secretariat provides administrative support to the other institutions of the Energy Community, reviewing the implementation of obligations by member countries, submitting yearly progress reports to the Ministerial Council, and reviewing and assisting the donors’ activity. The seat of the Secretariat is in Vienna.

Critics

The Treaty has been criticised by trade unions (European Federation of Public Service Trade Unions EPSU) as it lacks a social dimension. The European Commission is now developing a Memorandum of Understanding on the social aspects of the treaty in response.

Environmental organisations from South Eastern Europe criticised the process in December 2008 as they believed that the ECSEE contains insufficient safeguard mechanisms to ensure that the well-intentioned promotion of energy efficiency and renewable energy is not drowned out by the promotion of large and often environmentally harmful coal and hydropower plants.

See also

• Stability Pact for South Eastern Europe
• Energy policy of the European Union
• Baku Initiative
• Agency for the Cooperation of Energy Regulators
• European Network of Transmission System Operators for Electricity (ENTSO-E)
• European Network of Transmission System Operators for Gas (ENTSO-G)
• European Atomic Energy Community
• INOGATE
• Energy Charter Treaty

External links

• Energy Community official website
• EIoP Publication on the Energy Community
• Energy Community Regulatory Board (ECRB), official website
• Treaty establishing the Energy Community
• INOGATE EU program