The Treaty establishing Energy Community was signed in October 2005 in Athens, Greece. It entered into force on 1 July 2006.

The Energy Community extends the EU internal energy market to South East Europe and beyond on the ground of legally binding framework. It thereby provides a stable investment environment based on the rule of law, and ties the Contracting Parties together with the European Union. Through its actions, the Energy Community contributes to security of supply in wider Europe.

The general objective of the Energy Community is to create a stable regulatory and market framework in order to:

1. Attract investment in power generation and networks in order to ensure stable and continuous energy supply that is essential for economic development and social stability;
2. Create an integrated energy market allowing for cross-border energy trade and integration with the EU market;
3. Enhance the security of supply;
4. Improve the environmental situation in relation with energy supply in the region;
5. Enhance competition at regional level and exploit economies of scale.

The Parties to the Treaty are the European Union, on the one hand, and the Contracting Parties, namely, Albania, Bosnia and Herzegovina, Croatia, former Yugoslav Republic of Macedonia, Montenegro, Serbia and the United Nations Interim Administration Mission in Kosovo. Whilst Moldova became a full fledged member as of 1 May 2010, Ukraine officially acceded the Energy Community on 1 Feb 2011.

Armenia, Georgia, Norway and Turkey take part as Observers. As of Oct 2011, as many as 15 European Union Member States have the status of Participants. Furthermore, international donors also contribute to the process. The Donors’ Community is chaired and coordinated by the European Commission.
 

The Contracting Parties have committed themselves to implement the relevant acquis communautaire, to develop a adequate regulatory framework and to liberalise their energy markets in line with the acquis under the Treaty. The latter includes key EU legal acts in the area of electricity, gas, environment and renewable energy. The Treaty envisages that the main principles of EU competition policy are also applicable.

In addition and following the established procedures, the Contracting Parties took up the commitment to implement a set of security of supply and energy efficiency related legislation. The acquis must be implemented within a fixed time frame and is supported by concrete Action Plans. A common regional approach concerning oil, renewable energy and social dimension of the energy reforms is as well being worked upon.

The implementation process is backed up by dispute settlement procedures, which contribute to the enforcement of the Energy Community legal framework.

A strong institutional setting supports the process. This comprises Ministerial Council, Permanent High Level Group, Regulatory Board, four Fora and a Secretariat.

With its seat in Vienna, the Secretariat is the only permanently acting institution. It has currently a staff of 20 members, representing 11 nationalities. It monitors and assists the implementation process. Further to the energy policy activities, it provides administrative support to the other Energy Community institutions and organises annually some 40 events.

The biannual Energy Community Work Programme defines the framework, focus and deliverables of the work of the Secretariat. All the Parties to the Treaty contribute to the Energy Community budget, out of which more than 98 % originates from the European Union.