Brussels, 21/10/2011 (Agence Europe) - Established at the end of 2006 to integrate the countries of South East Europe in the EU internal energy market, strengthen their socio-economic stability, and guarantee supply security for the EU27 and their close neighbours, the Energy Community will be celebrating its fifth anniversary on Monday 24 October. This is a good example of regional cooperation.
The Energy Community - which, on the basis of a treaty that took effect in 2006, includes Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Moldova, Serbia, Montenegro, Ukraine and Kosovo, as well as the whole EU - was created for a period of ten years. The treaty establishing the community expires in July 2016 but extension may be decided. It has established a functioning institutional framework and given more legal security for investors. The next stages will consist of stepping up market reforms and intensifying investment in energy. The final objective is for the regional market to be fully integrated into the European internal energy market.
Achievements. In a press release, the European Commission underlines the achievements of the undertaking. Contracting parties have been successful in creating a stable regulatory framework and aligning their rules to European Union standards. The Energy Community contracting parties have adopted key EU legislation for opening up their electricity and gas markets to competition, based on the Second Energy Package of 2004 on opening electricity and gas markets, and including common rules on access to the market, on operation of the systems, on third party access to energy infrastructure and on consumer protection. They have also adopted EU rules for the third liberalisation package, that they undertake to implement in 2015. EU rules on energy efficiency in building and the labelling of household appliances have also been adopted, and also rules on renewable energies.
Prospects. The countries of the Energy Community, with which Norway, Moldova and Turkey are associated as observer countries, should now raise the challenge of investment to modernise and develop their capacity and network infrastructure, and in order to better connect with EU infrastructure. They should also create national regulatory authorities in the energy sector, by giving them power and resources, and by ensuring they are independent when it comes to respect of the principles of non-discrimination and effective competition on the energy market. Member countries should also develop a regional strategy on the region's needs and potential together with an investment plan. The Commission will continue its work to coordinate the member nations of the Energy Community, the secretariat of which, located in Vienna, provides administrative support and legal assistance. It received a budget of €3 million in 2011, financed at 98% by the EU. (EH/transl.jl)