The Treaty establishing the Energy Community was signed on 25 October 2005 in Athens by the European Community and then nine Contracting Parties from South East Europe. Following ratification, the Treaty entered into force on 1 July 2006.
 

AIMS
COMMITMENTS

Aims of the Treaty establishing the Energy Community

In its one-sector approach, the principles of Treaty establishing the Energy Community coincide with that of the European Steel and Coal Community, the genesis of the European Union. The Treaty subsequently strives to balance the commercial, political and social interests of all Parties. In guaranteeing stable and continuous energy supply, the process of Energy Community will ultimately result in enhanced economic development and social stability.

According to Article 2, the task of the Energy Community is to organise the relations between the Parties and create a legal and economic framework in relation to Network Energy in order to:

(a) create a stable regulatory and market framework capable of attracting investment in gas networks, power generation, and transmission and distribution networks.
(b) create a single regulatory space for trade in Network Energy that is necessary to match the geographic extent of the concerned product markets,
(c) enhance the security of supply of the single regulatory space
(d) improve the environmental situation in relation to Network Energy and related energy efficiency, foster the use of renewable energy, and set out the conditions for energy trade in the single regulatory space,
(e) develop Network Energy market competition on a broader geographic scale and exploit economies of scale.

In order to facilitate the process, the Treaty establishing the Energy Community defines the institutional setting and equips its stakeholders with distinct rights and duties. The following pages address these issues in more detail.

Commitments by the Parties under the Treaty

As regards the commitments undertaken by the Parties to the Energy Community, Article 3 of the Treaty establihes a three-tier structure which may be decribed as the Treaty’s concentric circles:

The first, inner-most circle in Title II of the Treaty “The Extension of the acquis communautaire” addresses the at present seven Contracting Parties alone. Under the Treaty, they have agreed to implement core parts of the EC acquis communautaire, both sector-specific and general. Details to the complete acquis including the respective implementation deadlines can be found in the subsection EU legislation. Title II also requires the Contracting Parties to adopt development plans with a view to bringing their energy sectors in line with generally applicable standards of the EC.

The second circle in Title III of the Treaty “Mechanism for operation of Network Energy Markets” addresses the Contracting Parties as well as seven EU Member States connected to the region, namely Austria, Bulgaria, Greece, Hungary, Italy, Romania and Slovenia. Title III contains provisions on creating mechanisms for long-distance transportation of Network Energy, adopting security of supply statements and promoting high levels of energy provisions to citizens. It also urges the harmonization of market designs, mutual regocnition of licenses and fostering free stablishment of companies, fostering development in the areas of renewable energy sources and energy efficiency, as well as providing a framework for safeguard measures in the event of a sudden crisis. For the greater part, the provisions in Title III require implementation through Measures taken or to be taken by the competent Energy Community institutions.
 

Finally, the third circle in Title IV of the Treaty “The Creation of a Single Energy Market” addresses the Contracting Parties as well as the entire European Community, i.e. to all Parties. Basically, it provides for the free movement of network energy and allows for further measures to be taken with a view to creating a single energy market. Furthermore, Title IV establishes an external energy trade policy and provides for a mechanism of mutual assistance between the Parties in the event of energy disruption.

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