energy community of southeast europe under athens treaty (2)_revised 11.06.2012

7/31/2019 Energy Community of Southeast Europe Under Athens Treaty (2)_revised 11.06.2012

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Energy Community of Southeast Europe under

Athens Treaty

Brief profile

STRATEGIC DEVELOPMENT DEPARTMENT

June - 2012


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Contents1 Document purpose ........................................................................................................................................... 3

2 Dates and mission ............................................................................................................................................ 3

3 Legal framework ............................................................................................................................................... 3

4 Stakeholders ..................................................................................................................................................... 3

5 Institutions ......................................................................................................................................................... 6

6 Dispute settlement ..........................................................................................................................................76

7 References ........................................................................................................................................................ 7


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Energy Community of Southeast Europe under Athens Treaty

3

1 Document purpose

The document intends to reflect brief profile of

Energy Community of Southeast Europe under

Athens Treaty which is also referred as European

Energy Community.

2 Historical background and

mission

Mission

The Energy Community extends the EU internal

energy market to South East Europe and beyond on

the ground of legally binding framework.

It provides a stable investment environment based

on the rule of law, and ties the Contracting Partiestogether with the European Union.

Through its actions, the Energy Community

contributes to security of supply in wider Europe.

Aims

The general objective of the Energy Community is

to create a stable regulatory and market framework

in order to:

Attract investment in power generation and

energy networks in order to ensure stable

and continuous energy supply that is

essential for economic development and

social stability;

Create a regional energy market allowing

for cross-border energy trade and

interconnection to the EU market;

Enhance security of energy supply;

Improve the environmental situation in

relation with energy production and supply

in the region.

Historical background25 October 2005 Treaty establishing the Energy

Community was signed;

29 May 2006 the signature of the Treaty was

approved by European Parliament

1 July 2006 the treaty entered into force;

3 Legal Framework

The Treaty establishing Energy Community paves

way to a set of common institutions and a legal

framework within which these institutions operate.

It also defines the rights and obligations of the

Parties to the Treaty.

For the sake of best possible overview, the

Secretariat compiles the prevailing Energy

Community legal framework under one cover. The

publication reflects the legal framework of the

energy community. The publication consists of three

parts:

The Part I replicates the Treaty establishing

the Energy Community,

The Part II lists the complete Energy

Community acquis communautaire1

in force.The Part III displays a selection of the Energy

Community secondary legislation.

4 StakeholdersIn October 2005 the European Union and the

Contracting Parties took the decisive step of

founding the Energy Community.

In order to facilitate the process, the Treaty

establishing the Energy Community equipped

several stakeholders with distinct rights and duties.

The Energy Community stakeholders bring together

representatives of the Contracting Parties,

Participants, Observers and Donors.

As a rule, a senior level civil servant from ministry of

economic affairs, section energy, represents the

stakeholder at the institutional meetings of the

Energy Community.

It was known from the outset, that the membership

of the Energy Community is likely to evolve over

time. Considering the fact that optimal electricity

and gas networks are intended to cover entire

European territory, for some countries it would be

beneficial to join the concerned energy community.

Given that the optimum electricity and gas networks

would cover the whole of the geographical

European landmass, there are several countries for

which there would be mutual benefits in joining.

Such countries are welcomed to join the Energy

1French word, meaning- things that which has been agreed

upon by the community

Comment [h1]: Does this publication

legal framework? Or explain

Comment [h2]: I think it is better to

statement as you have already stated it

Comment [h3]: Please,. Use this sen

friendly way

Formatted: Font: 10 pt, English (U.

Formatted: English (U.S.)


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4

Community, provided they take on board the

commitments of membership.

All the 27 European Union member states have the

right to become a Participant to the Energy

Community Treaty.

Pursuant to Title IX of the Treaty, neighboring third

parties may apply for the status of an Observer. The

Ministerial Council must decide by unanimity on the

acceptance of a new Observer.

The country with an Observer status can

subsequently express its interest in becoming a

Contracting Party to the Treaty.

The accession is subject to a negotiation process

lead by the European Commission.

According to the Treaty establishing the Energy

Community, the Parties to the Treaty have agreedto set up a legal and economic framework in relation

to Network Energy.

In case of the Contracting Parties, this entails the

adoption and implementation of acquis

communautaire on energy, environment,

competition and renewables.

The Parties to the Treaty also pledge themselves to

the principle of mutual assistance in case one Party

experiences problems in the operation of its energy

networks.

Contracting Parties

In 2005, the Treaty establishing the Energy

Community was signed by the European Union and

nine Contracting Parties.

In 2007, Bulgaria and Romania joined the European

Union. Pursuant to the Article 99 of the Treaty, their

status was changed to that of a Participant.

Whilst Moldova became a full fledged member as of

1 May 2010, Ukraine officially acceded the Energy

Community on 1 Feb 2011.

As of 1 Feb 2011, the Parties to the Energy

Community are:

European Union-

Albania

Bosnia and Herzegovina

Croatia

Former Yugoslav Republic of Macedonia

Moldova

Montenegro

Serbia

Ukraine

The United Nations Interim AdministrationMission In Kosovo

Participants

Any Member State of the European Community

may obtain the status of a Participant.

As member states of the European Community, the

Participants are per se2subject to the obligations

following from the acquis communautaire.

A country with a Participant status has the right to

take part in all the institutional meetings of the

Energy Community.

When the Treaty establishing the Energy

Community was signed, the Republic of Bulgaria

and Romania endorsed it together with the other

Contracting Parties. Following their accession to the

European Union, the legal status of Bulgaria and

Romania changed from a Contracting Party to that

of a Participant.

As of 6 October 2011, the group of Participants to

the Treaty establishing the Energy Community

amounts to 15 and comprises the following member

states:

o Austria

o Bulgaria

o Cyprus

o Czech Republic

o France

o Germany

o Greece

o Hungary

o Italy

o The Netherlands

o Poland

o Romania

o Slovakia

o Slovenia

o United kingdom

From each Party several representatives take part

to the Energy Community process. These include

above all the ministry in charge on energy issues,

energy regulators and transmission system

operators.

2Latin term that's used to mean "by itself" or "in and of

itself," without consideration of outside factors.

Comment [h4]: Please put a subtitle

composition of bullet points

What do you mean by subtitle? Could y

clear please.

Comment [h5]: It is repeated again h

Comment [h6]: Were they first joine

please mark it

They are not first joiners, their status is

firstly, they were contracting parties bec

were not members of EU. After becomin

of EU theirs status was changed.

Formatted: Highlight

Comment [h7]: All 27 countries EU

Comment [h8]: ?



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Observers

According to the Article 96 of the Treaty, any

neighboring third country may be accepted as an

Observer to the Energy Community.

Under the Observer status, a country may attend

the meetings of the institutions, without taking part

in the discussions and voting.

At its first meeting in Nov 2006, the Ministerial

Council accepted in accordance with the relevant

provisions of the Energy Community Treaty the

following countries as Observers: Moldova,

Norway, Turkey and Ukraine.

Upon reasoned request by Georgia, the Ministerial

Council accepted Georgia as an Observer to the

Energy Community in December 2007.

Similarly, Armenia was granted an Observerstatus by the 9th Ministerial Council in October

2011.

After having received the Observer status,

Moldova, Ukraine and Turkey formally

expressed their interest in full membership.

Mandated by the Ministerial Council, the European

Commission had the first round of formal

negotiations with Moldova and Ukraine in late

2008.

The first round of negotiations with Turkey took

place in September 2009.

After three negotiation rounds, the technical

negotiations with Moldova and Ukraine on full

membership were concluded in 2009.

The Ministerial Council, however, made theeffective membership subject to concrete legislative

amendments.

Whilst Moldova became a full fledged member as

of 1 May 2010, Ukraine officially acceded the

Energy Community on 1 February 2011.

Donors

Donors are institutions, organizations or

government agencies for development wishing to

contribute to the success of the Energy Community.

The donors have agreed to co-ordinate their

assistance to state and regional iniatives in order to

achieve the common, overall objective of

establishing a regionally integrated market.

The donors community is especially involved in the

activities of the Energy Community Fora3

.These include the forum on electricity, gas and

social issues in the context of the Energy

Community.

In addition to the financial support, the donors give

recommendations and guidance on priority policy

issues.

Furthermore the donors community takes part,

often as a speaker, to various Energy Community

workshops.

The donors meet to discuss and to co-ordinate their

actions several times per year.

The Donors Community is chaired and coordinated

by the European Commission.

Main donors are:

o World Banko EBRD

o IEA

o EIB

o USAID

o CIDA (Canada)

o Austria

o Italy

o France

o Germany

o Czech Republic

o Greece

3The Fora have the task to advise the Energy

Community. Chaired by the European Commission, a

Forum brings together all interested stakeholders from

the industry, regulators, industry representative groups

and consumers. Their conclusions, agreed by consensus,

will be addressed to the Permanent High Level Group

Comment [h9]: Senence is repeated

Comment [h10]: What is Fora and it

Formatted: Justified



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5 InstitutionsThe institutional setting of the Energy Community began to unfold with the 2002 Athens Process. The Treaty

establishing the Energy Community reconfirmed the final structures of the institutions in 2005. As a result, the

decision making process within the Energy Community involves the following organs.

Permanent High Level Group

It brings together senior officials from each Contracting Party and two representatives of the European

Community. It ensures the continuity of and follow-up to the political meetings by the ministers and decides,

in certain cases, on implementing measures.

Regulatory Board

It composes regulators from each Contracting Party and officials from the European Commission. It advises

the Ministerial Council and PHLG on details of statutory, technical and regulatory rules and makes

recommendations in the case of cross-border disputes between regulators. The Regulatory Board meets in

Athens. Its work is supported by four staff members of the Energy Community Secretariat.

Fora

The Fora have the task to advise the Energy Community. Chaired by the European Commission, a Forum

brings together all interested stakeholders from the industry, regulators, industry representative groups and

consumers. Their conclusions, agreed by consensus, will be addressed to the Permanent High Level Group.

The establishment of the Fora reflects the process leading to the creation of the Energy Community.

Secretariat

The day-to-day activities of the Energy Community are administered by the Secretariat, in particular by

regular review of each contracting partys fulfillment of its obligations under the Treaty and by initiating

Treaty enforcement procedures. The Secretariat is also responsible for making sure that the Energy

Communitys budget to which all Parties contribute is correctly spent and accounted for. Secretariat

consists of a staff of 22 originating from 13 different European states. The Secretariat has its seat in Vienna,

Austria.


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Dispute SettlementThe Treaty establishing the Energy Community in

Articles 90-93 creates a dispute settlement

mechanism which bears certain resemblance to the

European Communitys infringement procedure

without, however, providing for a judicial decision in

the last instance.

Under these rules, a Party to the Treaty, the

Regulatory Board and the Secretariat upon

complaint or on its own motion may bring a case

of non-compliance by a Party with Energy

Community law to the attention of the Ministerial

Council.

The Ministerial Council may determine the

existence of a breach by a Party of its obligations by

way of a decision.

In cases of serious and persistent breaches, certain

of the rights deriving of the application of the Treaty

to the Party concerned may be suspended by the

Ministerial Council.

These dispute settlement rules introduce a

preliminary procedure preceding the submission of

a case of non-compliance to the Ministerial Council.

This preliminary procedure will normally be

managed by the Secretariat as an independent

institution being in a position towhich will clarify the

factual and legal circumstances of each case.

Under such circumstances, the Secretariat will

initiate a case by way of an Opening Letter to be

followed, as the case may be, by a Reasoned

Opinion and Reasoned Request to the MinisterialCouncil.

In three-step procedure, the Party concerned will

have extensive opportunity for making its arguments

heardto deliver its arguments, to comply of its own

accord with the requirements of the Treaty or, if

appropriate, to justify its position.

The dispute settlement rules further flesh outmake

the rights of private bodies precise regarding the

submission of complaints to the secretariatthe right

of private bodies to submit complaints to the

Secretariat,This contributes to the enforcements of Energy

Community Law thereby making an important

contribution to the enforcement of Energy

Community law.

Interested third parties may access the case file

and/or submit written observations to the Secretariat

provided in case when they can substantiate their

legitimate interest.

Another important feature of the dispute settlement

rules is the creation of an Advisory Committee

composed of three senior lawyers appointed by the

Ministerial Council.

The Advisory Committee and, in certain cases; the

Regulatory Board, will deliver an opinion on cases

of alleged non-compliance once it has beensubmitted to the Ministerial Council.

The dispute settlement procedure plays an essential

role in the enforcement of Energy Community law,

enhancing legal certainty and, ultimately, makes

investments in the Energy Community more

reliable.

6 References

The Energy Community Legal Framework, 2nd

Edition, 1 November 2010

Stability pact for South Eastern Europe EU,EU/South eastern Europe Energy Community

www.energy-

community.org/portal/page/portal/ENC_HOME/ENE

RGY_COMMUNITY/Institutions

/www.energy-


RGY_COMMUNITY/Facts_and_Figures

www.energy-


RGY_COMMUNITY/Institutions

Formatted: Indent: Left: -0.25"

Comment [h11]: Too wordy, please

general / insignificant points and keep o

ones.

It is hard to change legal language (law)

eliminate some minor points, however,

text is essential to understand the conte

process

Formatted: Font: Bold

Formatted: Font color: Text 1
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energy community of southeast europe under athens treaty (2)_revised 11.06.2012

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