Budget at a glance

In addition to the core budget contributions of the Contracting Parties, the Energy Community also receives funding from other sources, including international donors and the European Union, represented by the European Commission. These contributions are provided through separate budgetary procedures or dedicated grant agreements. The amount of such funding varies from year to year and is recorded pro memoria at the close of each financial year.

Depending on the specific project or agreement, the beneficiary of this funding may be the Secretariat, all Contracting Parties collectively, or a single Contracting Party. Some of these contributions are linked to specific projects with defined durations, while others represent continuous or recurring annual support. This distinction affects the planning, implementation, and reporting obligations associated with each funding stream.
 

The Energy Community’s activities are financed by the Parties to the Treaty establishing the Energy Community. National contributions are determined by a formula that takes into account a country’s gross domestic product and total amount of primary energy that a country has at their disposal (total primary energy supply). The European Union is the largest contributor to the “core” budget, providing roughly 95% of the total amount. 
 

Pursuant to Article 75 of the Treaty, the director of the Energy Community Secretariat is responsible for the implementation of the budget. In this role, the director is supervised and advised by the Energy Community Budget Committee.

Article 75 of the Treaty tasks the director to report annually to the Ministerial Council on the execution of the budget. Article 38 of the budget rules stipulates further the obligation of the annual activity report by the director.

The purpose of the director’s report is to present a synthesis of the budgetary and financial management, as required by the above mentioned legal framework, of appropriations for the period ending 31 December.

Below find the last report submitted to the 2025 Ministerial Council.
 
 

Each year, the accountant establishes the accounts of the previous year no later than 31 March. These accounts are validated by the director. It is the director's duty, subject to approval by the Budget Committee, to designate an independent external auditor to carry out the annual audit of the Energy Community.

The external auditors submit an audit report and certified accounts, together with a statement of assurance relating to the reliability of the accounts and the legality and regularity of the underlying transactions, to the Budget Committee. The external auditor gives its opinion both in a public report (published on this website) and directly to the Budget Committee of the Energy Community, therefore to the representatives of the Parties to the Treaty.  

Every year the Ministerial Council examines the Energy Community’s certified accounts and financial statements, the report of the external auditors, for the purpose of granting discharge of the director from his/her management and administrative responsibility. In parallel, it takes account of potential observations by the Budget Committee. This procedure ensures full accountability and transparency and when granted, this discharge leads to formal closure of the accounts for the given year.

The basis for the discharge decision is an integrated financial package comprising:

• annual accounts of the Energy Community; 
• external auditors' Report on the Audit of the Financial Statements; 
• Energy Community Budget Committee's Report on Audit.

In its report, the Budget Committee is to note any disagreements with the director in the process of his/her financial management and state if it recommends to discharge the director. On this basis, the Ministerial Council grants discharge to the director from his management and financial responsibility.
 

Established by Article 22 of Procedural Act 2006/03/MC-EnC and later amended in 2014, 2022, 2024 and 2025, the Budget Committee supervises and advises the Director on financial management, reporting to the Ministerial Council in case of disagreement.

Below are the consolidated rules detailing budget procedures and the Committee’s responsibilities.
 

Supervision and advisory role

It is the task of the Budget Committee to supervise and to advise the director in the financial management of the operations of the Energy Community:

• The director shall inform regularly the Budget Committee on all matters relating to budgetary and financial management. The Budget Committee is empowered to obtain any necessary information or explanations regarding budgetary matters.
• The Budget Committee is to consulted timely before adoption of any internal rules and/or procedural acts having an impact on budgetary and financial management. It may propose modifications to the proposed rules.
• The Budget Committee also approves the Terms of Reference for the designation of an independent external auditor.

Reporting obligation

Article 81(5) equips the Budget Committee with a reporting obligation. In its report to the Ministerial Council, the Budget Committee is to assess

• the audit of the Energy Community’s annual accounts, and,
• the director’s financial management of the Energy Community budget.
• In case of disagreement with the director, the Budget Committee is to report to the Ministerial Council.

Below find the  Budget Committee's latest two reports submitted to the ministers in December 2025.
 

As all institutional bodies of the Energy Community, the Budget Committee is to adopt its internal rules of procedure. These rules were adopted in January 2008, and revised in December 2014. The most recent revision of the Budget Committee's rules of procedure occurred in November 2024.
 

Composition

The Budget Committee of the Energy Community consists of one member from each of the Contracting Parties and two members of the European Union, represented by the European Commission.

• The European Union and each Contracting Party nominate their representatives.
• The term of office of the Budget Committee is two years.
• Meetings of the Budget Committee are chaired by the European Commission. The Chairperson may appoint a Co-chair.

The Energy Community Secretariat takes part to the Budget Committee meetings without voting rights.
 

Meetings

The Budget Committee holds at least two ordinary meetings a year. It can also convene for an extraordinary meeting at the instance of the Chairperson or at the request of at least one third of its members. The Budget Committee may also meet upon proposal by the Director.

The Secretariat prepares and assists in the preparation of Budget Committee meetings.
 

Voting

• Any decision by the Budget Committee is to be taken by vote or by written procedure.
• Budget Committee acts by simple majority of the votes including a positive vote of the European Commission.
• In case of an equal number of votes, the European Commission shall have the deciding vote.

Access to the Budget Committee written procedure register is restricted to its members only.