The Energy Community event calendar 2012 is on outcome of the Energy Community Work Programme 2012-2013. In addition to the regular institutional meetings, such as those of the Ministerial Council, PHLG, ECRB and the Fora, there will be a number of meetings of the established Task Forces. The planned workshops target pressing policy issues, including preparatory steps on the implementation of the Third Internal Energy Package.

On 28 November 2011, the Secretariat sent an Opening Letter to Montenegro in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. The Secretariat takes the preliminary view that Montenegro failed to fulfill its obligations under the Energy Community Treaty by its regulatory authority setting distribution network tariffs not fully in line with the principle of cost-reflectivity.

In its conclusions from the meeting yesterday, the Council of the European Union welcomed “the progress concerning the integration of the Energy Community with the EU, in particular the accession of the Republic of Moldova and of Ukraine, as well as Armenia's observer status in the Energy Community.”

The Secretariat herwith announces two secondments and two internships for the calendar year 2012. The recruitment of seconded employees and interns is subject to the conditions and specifications set out in Procedural Act 2011/03/ECS. Qualified professionals are invited to apply via e-mail to recruitment@energy-community.org, quoting the title of the post in the subject line, not later than Tuesday, 27 December 2011, 5pm.

On 10 November 2011 a public hearing on “Building European Energy Diplomacy: External Dimension of Energy Security for Europe” took place at the EU parliament in Brussels. The conference stood under the patronage of the EU parliamentarians of the Group of the European People's Party (EPP), representing the committees on Foreign Affairs and on Industry, Research and Energy. As one of the four high ranking panelists, Mr. Slavtcho Neykov, Director of the Energy Community contributed to the debate in the context of “Energy Community: how effective in promoting EU rules abroad?”

On 4 November 2011, a Ukrainian business delegation consisting of European Business Association (EBA), AES, Shell Energy and DTEK visited the Secretariat. EBA accounts for one of the largest and most influential business communities bringing together more than 870 European, Ukrainian and multinational companies. The discussion was focused mostly on the large combustion plant directive, the latest developments of the Ukrainian energy distribution sector, unbundling and restructuring of NAK Naftogaz as well as gas price liberalisation. On its side, the Secretariat presented the recent Energy Community developments.

From 24 to 28 October 2011, official representatives from all the Contracting Parties took part to a five day training course on energy diplomacy. The course was co-organized by the Energy Community and the Vienna Diplomatic Academy (DA). The curriculum entailed lectures on the Energy Community, EU energy policy, EU structures and decision making, international energy treaties and protocol, including a one day negotiation simulation. The beginning of the training coincided with the official celebration of the 5th anniversary of the Energy Community Treaty.

Officially opened by Dr, Petar Skundric, the Energy and Infrastructure Advisor to the Prime Minister of Republic of Serbia, the 3rd Energy Community Oil Forum took place 27 – 28. October 2011 in Belgrade, Serbia. A regional approach to national oil stockpiling and oil crises management stood at the top of the agenda.

To pursue the further institutional development of the Energy Community, the Secretariat herewith seeks for two qualified professionals at the positions of Environmental Expert and Finance and Administrative Assistant. Qualified professionals are invited to apply via e-mail to recruitment@energy-community.org, quoting the title of the post in the subject line, no later than 31 December 2011, 5 p.m.

The secretaries from the Embassy of Japan in Austria and officials from Japan External Trade Organisation (JETRO) visited the Secretariat on 25. October. The aim of the visit was to gain a deeper insight in the Energy Community and to look for common ground for co-operation.

Yesterday the Energy Community hosted a high level political conference, celebrating the 5th anniversary of the entry into force of the Treaty establishing the Energy Community. Attended by more than 200 participants. the conference was opened by Mr. Marian Lupu, speaker of the Parliament and Acting President of the Republic of Moldova, also representing the Presidency in office. Mr. Michael Spindelegger, Foreign Minister and Vice-Chancellor of the Republic of Austria, and Mr. Reinhold Mitterlehner, Minister of Economy, Family and Youth of the Republic of Austria welcomed the participants on behalf of the host country. Mr. Günther Oettinger, European Commissioner for Energy, delivered the key note speech. Ms Hanna Trojanowska, Deputy Minister of Economy of Poland, addressed the participants on behalf of the Polish Presidency of the EU Council. The ceremony was conducted by Mr. Slavtcho Neykov, Director of the Energy Community Secretariat.

Ms. Gulmira Rzayeva from the Center for Strategic Studies under the President of the Republic of Azerbaijan paid today a visit at the Energy Community Secretariat. The aim of her visit was to get a better understanding of the Energy Community activities.

The Energy Community Secretariat will host a high level political conference, on Monday 24 October 2011, from 14:00 to 18:00 at the Vienna Diplomatic Academy, Favoritenstraße 15a, 1010 Vienna. Commemorating the entry into force of the Treaty in 2006, the conference will take stock of the energy sector in the South East European region and identify the most substantial changes in the legal framework, institutional structures, working practices and mind setting during the last five years. The dynamics of the young organization - accession of Ukraine and Moldova and its recent role as a policy instrument of the EU’s external energy policy - will also be subject to discussions.

Today the newly accredited Permanent Representative of the Russian Federation to the international organizations in Vienna, H.E. Ambassador Vladimir VORONKOV, visited the Energy Community Secretariat. The purpose of Ambassador Voronkov’s visit was to gain a more insight view of the modus operandi of the Energy Community as one of the international organizations based in Vienna, and to learn more about its latest developments. The Secretariat, in turn, was informed about the Russian views on infrastructure developments and its investment plans in Europe. Both sides considered the meeting useful and mutually informative.

On 7 October 2011, the Energy Community Secretariat submitted a Reasoned Opinion in Case ECS-3/08 against Serbia. The case concerns the non-compensation of KOSTT, the transmission system operator of the electricity network located on the territory of Kosovo under the UN Resolution 1244, by EMS, the transmission system operator in Serbia, for certain electricity transits. It also concerns the usage by EMS of the revenues from allocating transmission capacity on electricity interconnectors between the network operated by KOSTT and adjacent systems. The Secretariat is of the view that EMS’ conduct, attributable to the Republic of Serbia, fails to comply with Articles 3 and 6 of Regulation (EC) 1228/2003 on conditions for access to the network for cross-border exchanges in electricity.

On 7 October 2011, the Secretariat sent an Opening Letter to Bosnia and Herzegovina in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. In the Opening Letter, the Secretariat takes the preliminary view that Bosnia and Herzegovina failed to fulfill its obligations under the Energy Community Treaty by not having put in place appropriate legislation in the gas sector.

On 7 October 2011, the Secretariat sent Opening Letters to Albania, Montenegro and Serbia in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. The Secretariat takes the preliminary view that these Contracting Parties failed to fulfill their obligations under the Energy Community Treaty by allocating capacity on electricity interconnectors in a discriminatory manner.

Chisinau, Moldova 6 October 2011 Today, the Energy Community Ministerial Council decided to adopt the European Union rules on the Internal Market for electricity and gas known as "Third Package". According to the ministers’ decision, the Contracting Parties now have a legal obligation to implement these rules by January 2015, at the latest.

Vienna, 7 October 2011 Yesterday the Secretariat released its annual implementation report and presented it to the Energy Community Ministerial Council in Chisinau, Moldova. According to the Secretariat’s assessment there is an overall positive trend, particularly in transposition of the electricity and gas acquis, and compared to the period of stagnation in the preceding year. Several Contracting Parties so far lagging behind have caught up and reformed their legal framework.

Yesterday the representative of the Eastern Partnership Platform 3 on energy security joined the 22nd Permanent High Level Group to discuss energy security supply. The meeting focused on security of supply issues, and in particular on the development of the Gas Ring concept.

With their signatures of the Declaration of Memorandum of Understanding on Social Issues, Ukraine and Moldova recognise the important principle that economic development and social progress must go hand in hand. They also have committed to draft national Social Action Plans prior the next forum in 2012. The aim of the plans is to mitigate adverse factors of the liberalisation of the electricity and gas market. The signing ceremony took place at the 4th Social Forum in Chisenau, Moldova.

The Moldovan Deputy Prime Minister and Minister of Economy, Mr. Valeriu Lazar, will chair the 9th Energy Community Ministerial Council meeting on 6 October 2011 in Chisinau, Moldova. Mr Fabrizio Barbaso, Deputy-Director General for Energy at the European Commission, will act as Vice-Chair, representing the European Union.

On September 21-22 2011, the 6th Energy Community Gas Forum met in Bled, Slovenia, to discuss the EU energy policy and strategy documents developed with the last 12 months. The role of the Energy Community, and its deepening relations with the EU institutions, were at the centre of attention. Also, the possible implementation of the 3rd package and its implications on the Contracting Parties security of supply obligations dominated the debate.

Under the leadership of the Polish Presidency, an informal meeting of the EU Transport, Telecommunications and Energy Council took place in Wrocław on 19th-20th September 2011. For the first time, the ministers of the Energy Community Contracting Parties and Observers were invited to join.

By way of a decision of the State Electricity Regulatory Commission (SERC) dated 6 September 2011, Bosnia and Herzegovina corrected a transmission system tariff structure which, until now, discriminated against the export of domestic electricity and constituted a barrier to the free movement of electricity in the Energy Community. The Secretariat repeatedly requested that step to be taken.

The Polish Presidency hosted yesterday an expert level seminar with the title “How to deepen and extend the Energy Community” in Warsaw, Poland. Officially opened by Mr. Jerzy Pomianowski, Under Secretary of State, the seminar brought together 100 energy experts representing the ministries, regulators, industry, donors, the European Commission and academia from the region.

The European Commission has today adopted a Communication on security of energy supply and international cooperation - "The EU Energy Policy: Engaging with Partners beyond Our Borders". The paper sets out for the first time a comprehensive strategy for the EU's external relations in energy. Here the aim is to speak with one voice and to secure thereby EU”s energy interests abroad. The Communication also entails references to the Energy Community.

The European Commission has decided recently to include the Energy Community Secretariat as a member of its Gas Coordination Group. In addition to changes in the Group’s composition, the decision entails more detailed rules on facilitating the coordination in cases of emergency concerning gas supply at EU or regional level.

The Albanian Prime Minister Dr. Sali Berisha and the Director of the Energy Community Secretariat met today in Tirana. Director Neykov informed Dr. Berisha on the recent and the planned developments in the Energy Community. The progress, achieved by Albania, was a particular target of the discussions. "For Albania the membership in the Energy Community is of outstanding importance. We consider the Community as a framework, based on the EU law, which provides rules not only for national developments, but also for regional cooperation. And it is excellent that the Albanian authorities and the Secretariat have such a good communication throughout the years, which is highly appreciated", said Dr. Berisha. "Albania is a devoted member of the Energy Community - the hard work of all its involved institutions is to be particularly underlined. The legislative reforms so far are certainly impressive", stated Director Neykov.

On 24 June 2011, the Western Balkan Investment Framework (WBIF) decided to give 400 kV interconnection Serbia – Montenegro –– Bosnia and Herzegovina - Regional project a 850.000 € grant for the execution of feasibility study, including environmental and social impact assessment (EIA). The project accounts for one the priority Energy Community electricity projects.

As on 24 June 2011, the Western Balkan Investment Framework (WBIF) decided to grant the Ionian Adriatic Pipeline project a 3.5 million € grant for the execution of feasibility study and environmental impact assessment (EIA). Whilst Croatia together with Bosnia and Herzegovina, Montenegro and Albania account for the beneficiaries, EBRD has expressed its interest to be the leading IFI.

Yesterday, the Secretariat greeted a broad delegation of Kosovo institutions with competences in the energy field. Mr. Besim Beqaj, Minister for Economic Development, had not only brought his team but also representatives from five other ministries, namely Trade and Industry, Finance, Labour and Social Welfare as well as Environment and Social Welfare. Further, the Energy Regulatory Office and the Competition Authority were represented at the highest level. Also the energy industry, represented by KOSTT, KEK, KEDS, took part to the talks.

Today a delegation led by Mr. Josef Hejsek, Chairman of the Board of Directors of CEZ Albania, paid a visit at the Secretariat in Vienna. The focus of the meeting was put on the CEZ’s experiences and challenges as a foreign investor in the Albanian electricity market. CEZ purchased shares in state owned distribution and entered subsequently the Albanian market in 2009.

On 10 June, the Moldova’s Donors Community held a meeting on the Energy Community. Organised as a back to back event to the international conference “Moldova and the Energy Community”, the meeting brought all the donor organisations and states around one table. The aim of the meeting was to identify common ground and to define the areas where the Moldovan Donors Community and the Energy Community Secretariat can co-operate.

Moldova, as Energy Community Presidency in Office, hosted today an international conference on “Moldova and the Energy Community” in Chisinau. The conference included the signing ceremony of a Memorandum on Implementation Partnership between the Ministry of Economy, the National Agency for Energy Regulation (ARNE) and the Energy Community Secretariat.

The fight against climate change was the umbrella term of this year's Energy Community Investment Conference. Organised at the old Vienna Stock Exchange building, the conference looked at the best ways how to combine the effects of greenhouse gas emissions with the national energy planning. To this end, the support for renewable energy, closing or retrofitting the less efficient power plants, stricter rules for generation technologies as well as development of energy efficiency policies were at the top of the agenda.

The Energy Community Secretariat contracted the Petroleum Development Consultants limited, PDC, (an UK based company) to conduct a study on the “Emergency Oil Stocks in the Energy Community Level” in July 2010. The PDC submitted its final report on 3 May 2011. The study is now available on-line.

In May 2009, the project sponsors, a group consisting of the World Bank, the European Commission, and the European Investment Bank, contracted IHS CERA to conduct a study on Caspian Development Co-operation (CDC). The aim of the study was to create an institutional design and commercial framework for the proposed CDC and to formulate an process for its implementation. Thank to the courtesy of the World Bank, the CDC Final Implementation Report is now available for downloading .

On 4 May 2011, the Commission posted on its website a working paper which examines the possibilities of third countries’ participation in the work of the Agency for the Cooperation of Energy Regulators (ACER) and ENTSOs (European Network of Transmission System Operators for Electricity and Gas). The approach taken is of high relevance to the Contracting Parties of the Energy Community.

Following the adoption of a new Law on Energy in February 2011 by the former Yugoslav Republic of Macedonia, and the signature of an Implementation Partnership for secondary legislation in April 2011, the Secretariat decided to close cases ECS-2/08, 4/08 and 1/09.

Mr. Besim Beqaj, Minister of Economic Development, Mr. Ali Hamiti, Chairman of the Energy Regulatory Office and Mr. Slavtcho Neykov, Director of the Energy Community signed today a memorandum on “Implementation Partnership” in Pristina.

The aim of yesterday’s implementation workshop was to recall the principals of the Treaty, outline the role of the regulator in the process and to define pressing issues for the Secretariat’s assistance. The Ukrainian delegation consisted of eight representatives and was lead by Mr. Serhiy Dunailo and Mr. Kostiantyn Telychko, Commissioner’s of the Ukrainian regulator (NERC), Mr. Anatoliy Khodakivskyi, Director of Ukrainian TSO, JSC “Ukrenergo”, Mr. Oleksandr Rogozin, Vice-president of NJSC “Energy Company of Ukraine” and Mr. Angel Minev, Team Leader of a EU financed project ESBS.

Pursuant to the Treaty, each Contracting Party is to prohibit State aid which distorts or threatens to distort competition and affects the energy trade between the Contracting Parties. The new study assesses the current legal and institutional framework for monitoring State aid measures in the electricity sector (generation, transmission, distribution, supply, trade and consumption) across the seven Contracting Parties. The benchmark for this evaluation is the law and practice of the EU.

A group of 27 Master of Peace and Security Studies students from the University of Hamburg (IFSH) visited today the Secretariat. During these two hours, the inter linkage between energy, security and peace was put in the forefront.

Following an unprecedented co-operation between the Energy Community Secretariat and the state institutions in charge of energy in Former Yugoslav Republic of Macedonia, a new law on energy was adopted in February 2011. After this milestone, it was necessary to shift the focus from primary to secondary legislation. To reach full compliance with the acquis, a bundle of secondary legislation must be adopted and enforced. In order to master the challenge, the Secretariat, Ministry of Economy and the Energy Regulatory Commission have today agreed on the establishment of an implementation partnership.

Today, the Secretariat released a study on the “Potential for Climate Change Combating in Power Generation in the Energy Community”, prepared by the South East Europe Consultants, SEEC. The study presents an inventory of the greenhouse gas emissions from electricity generation (including CHP) of the Contracting Parties, as well as the projected increase of these emissions by 2020, based on the generation forecast.

Yesterday, the members of the ECRB and PHLG, including Mr. Alberto Pototschnig, Director of ACER, Mr.Aleksandar Mijuskovic, Chairman of the SEE CAO Project Team Steering Committee and Mr. Milos Mladenovic, Convener of the ENTSO-E Regional Group SEE, got together to debate on the findings of the World Bank study on wholesale opening and the steps ahead.

Friday, 25 March 2011, marks the commencement of a call for tenders on “Study on Energy Efficiency in Buildings in the Contracting Parties of the Energy Community”. The closing date for the tender is April 26, 2011.

With reference to the latest Implementation Report, the Skopje Ministerial Council requested the Secretariat to draw conclusions from the report and to identify the next steps. Yesterday, the Secretariat presented to the members of the 19th PHLG a paper on how to boost the implementation of the Treaty. “Implementation Partnerships” will be the point of reference. The paper proposes tougher reporting, particular scrutiny for those lacking behind and more affirmative action in case of non -compliance

Yesterday, the Secretariat organized a workshop, where the findings of the “Study on State aid and the effectiveness of State-aid control in the Energy Community” were presented and discussed. Acting as authors of the study, the workshop was jointly conducted by two law firms; Hunton & Williams LLP from Brussells and Eisenberger & Herzog Rechtsanwalts GmbH from Vienna.

Upon a foregoing invitation by Director Slavtcho Neykov, a high level delegation of VERBUND Trading AG, paid yesterday a visit to the Energy Community Secretariat. The visit marks the industries’ interest in the Energy Community process. It also underlines VERBUND’s and the Secretariat’s efforts in defining areas of future cooperation.

A day after the 11th Energy Efficiency task Force meeting, the Secretariat organized a workshop on “Energy efficiency acquis – practical implementation aspects”. The aim of the training workshop was to assist the Contracting Parties to clarify better practical implementation aspects, to build on the lessons learned in the European Union, and from each other

Yesterday, the European Commission published its first assessment report after entry into force of the Energy Community Treaty. The report “reviews the achievements of the Energy Community and also its main challenges for the future.” In its press memo, the Commission “welcomes the achievements of the Energy Community but warns about the risks of not addressing outstanding shortcomings.” It also calls to extend the existence of the organization beyond 2016.

Yesterday, Energy Commissioner Oettinger and Prime Minister of Slovenia Borut Pahor inaugurated the Agency for the Cooperation of Energy Regulators (ACER) in Ljubljana, Slovenia. The task of the new agency is to remove technical obstacles to cross-border energy trade. ACER will also coordinate activities of national energy regulators and help solving possible conflicts between them.

Yesterday, representatives of all Contracting Parties and Georgia, Turkey came together to discuss the draft final report of the “Emergency Oil Stock Study”. The study proposes a crude oil and petroleum product stockholding policy for each Contracting Party and Observers. It also draws up a road map for compliance with the Directive 2009/119/EC on emergency oil stocks.

Last Thursday and Friday (24-25.03.2011), close to 70 experts took part to the 4th Statistical Workshop in Vienna, Austria. The workshop was organized by the Secretariat with the support of the European Commission - DG Energy and EUROSTAT, the International Energy Agency, EURELECTRIC and EUROGAS.

The ECRB at its last week’s meeting in Athens elected Mirsad Salkic, Chairman of the regulatory authority of Bosnia and Herzegovina, as ECRB President 2011. With this decision, Mr. Salkic starts a second term in this position following his 2010 ECRB Presidency. “I am honored by the decision of the Board and thank my colleagues for the confidence they have in me”, Mr. Salkic said in a first reaction.

Following its meeting in Athens, the ECRB has approved and published its Annual Report 2010. The report summarizes the activities of the ECRB in 2010 and results achieved by the individual Working Groups dedicated to electricity, customer issues, gas and the setting up of an office for regional coordination of electricity capacities (SEE Coordinated Auction Office).

At its plenary meeting in Athens, the ECRB published a report on gas transmission tarification in South East Europe. The document outlines the current status of national and cross- border transmission tarification and identifies possible measures for improvement. Regulatory experience shows that transmission charges in South East Europe are not always transparent. Moreover, system users can not always be certain if the fees charged for transmission are correct and justified.

As a result of its yesterday's meeting in Athens, the Energy Community Regulatory Board, ECRB, decided to published a report on the national gas market models in the Energy Community. The report assesses the prevailing models and their compliance of their core pillars with the requirements of Regulation (EC) 1775/2005.

Yesterday, at its plenary meeting, the Energy Community Regulatory Board (ECRB) agreed to publish an analysis on the status of electricity balancing systems in the Energy Community and selected neighboring EU Member States. The analysis shows that the balancing markets in the 8th region are still in a development phase.

In spring 2006 the South East European Electricity Transmission System Operators, SETSO, initiated a project for designing a regional electricity balancing mechanism model for South East Europe. An integral part of the project was the development of a prototype for a computer platform on which the proposed design could be tested. This regional balancing market platform – so-called “BETSEE” software package is now available for downloading.

On 8 February 2011, the Energy Community Secretariat sent an Opening Letter to UNMIK/Kosovo in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. In the Opening Letter, the Secretariat takes the preliminary view that UNMIK/Kosovo failed to fulfill its obligations under the Energy Community Treaty by not adopting legislation prohibiting State aid and enforcing that prohibition.

Yesterday, the Parliament of the former Yugoslav Republic of Macedonia passed the country’s new Energy Law. The Law sets the general legal framework for the domestic energy sectors including electricity, gas, renewable energy, energy efficiency, oil and security of supply. The Energy Community Secretariat had requested a new law in compliance with EU legislation in the context of a dispute settlement procedure, and then assisted the Ministry with drafting.

Today officially marks the second enlargement of the Energy Community - upon completion of all legal procedures, on this date Ukraine will become a full fledged member of the Energy Community.

Today the first Day of Serbia took place at the premises of the Energy Community Secretariat. The official Serbian delegation was lead by the Serbian minister of Mining and Energy Mr. Petar Škundrić, who was accompanied by two state secretaries and other officials. Further to the Serbian initiative for the preparation of regional energy strategy, the debates were also focused on the concrete policy issues in light of the implementation of the Energy Community Treaty by Serbia.

On 20 January 2011, the Energy Community Secretariat sent Opening Letters to Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro and Serbia in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. The Secretariat, acting under Article 90 of the Treaty, notes that these six Contracting Parties have not yet adopted a common coordinated congestion management method and procedure for the allocation of capacity to the market.

The IEA report provides a global review of key elements of energy efficiency governance. It complies the findings of a survey of over 500 EE experts in 110 countries, follow-up interviews of over 120 experts in 27 countries and extensive desk study and literature searches. Six of the eight Energy Community Contracting Parties participated in the study, namely Albania, Bosnia and Herzegovina, Croatia, former Yugoslav Republic of Macedonia, Serbia and UNMIK. The report and a separate handbook are now available on-line.

On 7 January 2011, the EU Observer published an article written by Mr. Fatmir Besimi, Minister of Economy of the Former Yugoslav Republic of Macedonia. Representing the Presidency in office in 2010, Minister Besimi outlines the biggest achievements in 2010, initiatives and future challenges of the Energy Community.