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, FYR of Macedonia, Moldova, Montenegro, Serbia, Kosovo*  and Ukraine.

Armenia, Georgia, Norway and Turkey take part as Observers. Georgia is presently in the process of joining the Energy Community as a full fledged member. As of February 2013, 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.

With their signatures in 2006, 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, renewable energy resouces. 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 an additional set of security of supply and energy efficiency related legislation in 2009. Whilst the electricity, gas, energy efficiency and renewable energy acquis underwent an update, new acquis on statistics and oil emergency stock was added in 2012. The acquis must be implemented within a fixed time frame and is supported by Action Plans or by a work of a Task Force. A common regional approach on investments 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. Whilst the Ministerial Council meets once a year, the Permanent High Level Group meetings take place every three months. The Energy Community has presently Task Forces on energy strategy, environment and energy efficiency. The work of the Regulatory Board is organized in working groups for electricity, gas and customer protection. Conceived as discussion platforms, four advisory Fora in the area of electricity, gas, social issues and oil complement the process.

With its seat in Vienna, the Secretariat is the only permanently acting institution. It has currently a staff of 22 members, representing 15 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. Since 1 December 2012, Mr. Janez Kopac acts as the director of the Secretariat.

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 95 % originates from the European Union.