Athens, 18/11/2002 (Agence Europe) - At the ministerial conference which allowed the signature of the "Memorandum of Understanding on the Regional Electricity Market in South East Europe and its Integration into the European Union Internal Electricity Market", Loyola de Palacio, Vice-President of the European Commission in charge of transport and energy, said: "This agreement is emblematic of... the Stabilisation and Association process".
The Regional Electricity Market in South East Europe (REM-SEE) is an initiative that seeks to integrate the Greek electricity market into the wider European Union's Internal Electricity market and to reconstruct the Western Balkans electricity systems after war damages. The Commission asserts that it fosters mutual trust amongst the participants and eventually leads to regional institutions that are optimal for the operation of an integrated electricity system. In March 2002, the European Commission convened a meeting at the political level of South East European countries, to discuss how progress in the REM initiative. All the participants agreed that the SEE countries adopt the EU legislation based on principles set out in the Electricity Directive and the new proposal once adopted. Regarding the timetable, it is proposed that the countries open their electricity markets by 2005, to create Regulatory Bodies and Transmission System Operators by June 2003 and Distribution System Operators by January 2005. Moreover, a "Florence style approach" has been set up. In particular, the South East Europe Electricity Regulatory Forum, the so-called "Athens Forum" brings together governments, regulators, transmission system operators, industry and the donors to discuss and resolve on technical issues. This approach has the full support of the financial institutions and bilateral donors (the World Bank, the EIB, the EBRD, Italy, Greece, Switzerland, etc) and the Balkans Stability Pact. The Commission has ensured that all the countries involved assume ownership of this initiative by introducing a six months revolving presidency of the initiative. Greece holds the first Presidency.
During the Ministerial Meeting in Athens on 15 November, the energy ministers of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Federal Republic of Yugoslavia, Former Yugoslav Republic of Macedonia, Greece and Romania, as well as the Special Representative of United Nations Secretary General for Kosovo, signed the MoU as the "adhering parties". The Commission and the Stability Pact for South East Europe, are signatories as "non participating sponsors", while Italy, Hungary and Turkey have signed as "observers". The Commission will propose by June 2003 similar agreements for gas market integration.