MEMORANDUM ON SOCIAL ISSUES


Background

 

The Implementation of the Directives 2003/54/EC and 2003/55/EC is central for achieving the objectives of the Treaty establishing the Energy Community. The Article 3 of the two Directives, make an explicit reference to public service obligations and customer protection, Accordingly the Contracting Parties must protect final customers and “in particular ensure that there are adequate safeguards to protect vulnerable customers”. In short, the Contracting Parties have a legally binding obligation to foster social dimension within the process.

Discussions on social dimension have always accompanied the process of implementation of the Treaty establishing the Energy Community. These discussions culminated in an agreement on a Memorandum of Understanding on Social Issues in the context of Energy Community, signed by all seven Parties to the Treaty in October 2007.  Ukraine and Moldova signed the Declaration of Memorandum of Understanding on Social Issues at the 4th Social Forum in October 2011.

  

Aim and Focus

The Memorandum outlines the political intent to take due account of the social dimension within the context of the Treaty. It recognises that economic development and social progress are mutually linked and should go hand in hand. There is a common understanding on the importance and the necessity to involve social partners in the process. Social dialogue is welcome especially in relation to monitoring the effects of the Treaty implementation and taking measures to mitigate the adverse impact.

In addition to public service obligations, the Contracting Parties  agreed to focus on:
• workers' fundamental rights,
• labour laws,
• health and safety at work and
• on equal opportunities.
 


In consultation with the relevant social partners each Contracting Party should agree on an approach how to further address the issues within the social dimension. The findings and the appropriate follow-up shall be done in the form of social action plans, but this is not mandatory.
 

In order to maintain the impetus, the Contracting Parties invite the European Commission to develop strategies to deal with the wider social dimension covering the issues of affordability, energy poverty, district heating reform, rural distribution, isolated systems and societal impacts of reforms. They also welcome financial support on behalf of the European Commission and of the Donors’ Community for activities supporting the aims of the Memorandum.
 

The Contracting Parties additionally agree to assess the need and the form of a social platform for dialogue, explicitly targeting social impacts of energy market reform. Should the assessment be positive, the establishment of a regular platform should be pursuit without a delay.
 

The inofficial translations into Russian and Ukrainian were provided by courtesy of EPSU, one of the European social partners.

 

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