Focus on Energy, 2010 - Karanovic & Nikolic

The main goal of the Athens Forum was to establish an integrated regional electricity market in SEE by2005 and to ensure its integration into the EU internal market as defined in the Electricity Directive 2 .Such an integrated regional electricity market in SEE would be based on the principles set out in theElectricity Directive and any related legislation.In order to enable regional co-operation the adhering parties committed to establish compatible nationalelectricity market models through the setting up of independent electricity regulators and thelegal separation of different electricity functions, particularly the separation of both the transmissionand the distribution of energy from other functions.In 2003, the Athens Memorandum was revised to integrate the market in natural gas. In addition to theprovisions relating to the natural gas market, the paper included new EU Electricity and Gas Directivesfrom June 2003 3 .ENERGY COMMUNITY TREATYThe Athens Memorandum laid a foundation for further, more concrete steps to be taken. In May 2004,the EU opened negotiations with the countries of the SEE region in order to conclude an agreementwhich would collate all the previous political commitments which had been established in the AthensMemorandum into a legally binding document.4The negotiations took place with the EU on one side and Albania, Bosnia and Herzegovina, Bulgaria,Croatia, Macedonia, Montenegro, Serbia, Romania, Turkey and UNMIK on the other. The Energy CommunityTreaty (the “Treaty”) establishing the Energy Community was signed in Athens, Greece, on 25October 2005 and entered into force on 1 July 2006 4 . Initially, the Treaty covered the electricity and gassector and as of 11 December 2008 5 , the scope of the Treaty has been extended to the oil sector.FOCUS ON ENERGYThe Parties to the Treaty are the EU, on the one hand and the seven adhering parties (Albania, Bosniaand Herzegovina, Croatia, Macedonia, Montenegro, Serbia and UNMIK). Pursuant to the Treaty, the EUmember states may become participants in the Energy Community and be represented in its relevantbodies (the Ministerial Council, the Permanent High Level Group and the Regulatory Board). Neighbouringthird countries may be accepted as observers. The observers may also attend the meetings of theMinisterial Council, the Permanent High Level Group and the Regulatory Board, but unlike participants,they are not allowed to take part in the discussions.Since March 2008, 14 EU member states are classified as being participants (Austria, Bulgaria, Cyprus,Czech Republic, France, Germany, Greece, Hungary, Italy, the Netherlands, Romania, Slovakia, Sloveniaand the United Kingdom) (the “Participant States”). Both Romania and Bulgaria are former adheringparties which, following their accession to the European Union have since became participants. Georgia,Moldova, Norway, Turkey and Ukraine also take part as observers. Furthermore, international donors alsocontribute to the process (such as the European Bank for Reconstruction and Development (“EBRD”), theEuropean Investment Bank (“EIB”), the United States Agency for International Development (“USAID”),theEuropean Commission, the World Bank, the European Agency for Reconstruction (“EAR”), the Germanowned promotional bank “KfW Bankengruppe” and the Canadian International Development Agency(“CIDA”). The donors’ community is both chaired and coordinated by the European Commission.The Treaty provides a legal and economic framework for an integrated market in natural gas, electricityand oil based on the extension of the energy, environment and competition acquis communautaire to2 Directive 2003/54/EC (the ”Electricity Directive”)3 Directive 2003/55/EC (the “Gas Directive”)4 The Treaty was approved by the European Parliament on 29 May 2006 and subsequently ratified by UNMIK on 23 December 2005, Bulgaria on7 March 2006, Albania on 24 May 2006, the European Union and Macedonia on 29 May 2006, Romania on 26 June 2006, Croatia on 30 June 2006,Serbia on 27 July 2006, Bosnia and Herzegovina on 20 September 2006 and Montenegro on 15 December 20065 Pursuant to the decision of the Ministerial Council of the EU as of 11 December 2008 the acquis to be implemented by the adhering parties isextended so as to include the oil sector i.e. the supply, trade, processing and transmission of crude oil and petroleum products falling within the scopeof European Community Directive 2006/67/EC and the related pipe-lines, storage, refineries and import export facilities. The decision determines thenew elements of the acquis regarding oil sector and the timetable for its implementation must be defined by 30 June 2010.