In agreeing to establish Energy Community, the Contracting Parties have taken on a legally binding obligation:
1. to implement the relevant acquis communautaire,
2. to set up regulatory structures, and,
3. to liberalise their energy markets.
It is crucial that improvement of the balance between energy supply and demand goes hand in hand with the economic development in the region. This requires a strong commitment by the Contracting Parties towards market oriented reforms in order to:
1. improve overall energy conservation and efficiency,
2. reduce an excessively high energy intensity of production compared to international standards,
3. strengthen national institutional capacities and adapt legislation and regulation to EU norms and practices.
It also means that countries should be prepared to draw fully on the substantial gains which can result from energy trading among themselves and with their neighbours.
The objectives of the contemporary European energy policy are threefold:
1. combating climate change,
2. limiting its external vulnerability to imported hydrocarbons, and,
3. promoting growth and jobs, thereby providing secure and affordable energy to consumers.
These principles also guide the work of the Energy Community. Yet, just as the EU energy policy has developed over time to take account of changing circumstances, so the activities of the Energy Community will also transform.
The first section focuses on the Implementation report. The rest of the section gives details on the areas of work of the Energy Community.