EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 14.11.2006 
COM(2006) 709 final 
  
Proposal for a 
COUNCIL DECISION 
on a Community position within the Mini sterial Council of the Energy Community on 
certain procedural issues related to th e budget of the Energy Community, on the 
procedural rules on acceptance of countries as Observers and rights and obligations of 
Observers to the Energy Community, and on the acceptance of Moldova, Ukraine, 
Norway and Turkey as Observers to the Energy Community 
(presented by the Commission) 
 
EN 2   EN EXPLANATORY MEMORANDUM   
On 17 November 2006, the first meeting of the Ministerial Council of the Energy Community 
will take place.  
The meeting will have a strong focus on the adopti on of procedural acts that are envisioned in 
the Energy Community Treaty and are necessary  for a smooth operation and functioning of 
the Energy Community. Under Article 88 of th e Energy Community Treaty, acts related to 
budgetary issues are to be prepared and subm itted in the Energy Community by the European 
Commission. 
Further point on the agenda of the Ministeria l Council is the acceptance of Moldova, Ukraine, 
Norway and Turkey, upon their own request in accordance with Article 96 of the Energy 
Community Treaty, as Observers to the Energy Community.  
 
EN 3   EN Proposal for a 
COUNCIL DECISION 
on a Community position within the Mini sterial Council of the Energy Community on 
certain procedural issues related to th e budget of the Energy Community, on the 
procedural rules on acceptance of countries as Observers and rights and obligations of 
Observers to the Energy Community, and on the acceptance of Moldova, Ukraine, 
Norway and Turkey as Observers to the Energy Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing th e European Community, and in particular 
Article 300 paragraph 2, second subparagraph, 
Having regard to the proposal from the Commission, Whereas: (1) Articles 74 and 88 of the Energy Commun ity Treaty provide th at the Ministerial 
Council of the Energy Community shall adopt a Procedural Act specifying the 
Procedure for the implementation of the budget, and for presenting and auditing 
accounts and inspection. 
(2) Pursuant to Article 96 of the Energy Comm unity Treaty, the Minist erial Council of the 
Energy Community may, by unanimity, accept a neighbouring third country as an 
Observer. 
(3) Pursuant to Article 86 of the Energy Commun ity Treaty, the institutions of the Energy 
Community are empowered to take Procedur al Acts which regulate organizational, 
budgetary and transparency issues. 
(4) Following the accession of Bulgaria and Romania to the European Union, the 
contributions from these countries to the Energy Community budget, foreseen in Annex IV to the Energy Community Treat y, will be borne by the European 
Community in accordance with Article 6 of the Act of Accession
1 and, pursuant to 
Article 99 of the Energy Community Treaty, these countries become Participants in 
the Energy Community. 
                                                 
1 OJ L 157 from 21.6.2005, p. 203. 
 
EN 4   EN HAS DECIDED AS FOLLOWS: 
Article 1 
The position to be adopted by the Community within the Ministerial Council of the Energy 
Community on the Energy Commun ity procedure for the implem entation of the budget, and 
for presenting and auditing accounts and inspecti on, is that defined in the attached draft 
Procedural Act on adoption of Energy Comm unity Procedures for the establishment 
and implementation of budget, auditing and inspection, set out in Annex A. 
Article 2 
The position to be adopted by the Community within the Ministerial Council of the Energy 
Community on the implementation of Annex IV to the Energy Community Treaty after the 
accession of Bulgaria and Romania to the European Union is that defined in the attached draft Procedural Act on the implementation of Anne x IV of the Treaty establishing the Energy 
Community with respect to Bulgaria and Ro mania becoming Particip ants of the Energy 
Community, set out in Annex B. 
Article 3 
The position to be adopted by the Community within the Ministerial Council of the Energy 
Community on the procedural ru les on acceptance of countries as Observers and rights and 
obligations of Observers to the Energy Community is that defined in the attached draft Procedural Act on adoption of the Procedural ru les on acceptance of countries as Observers to 
the Energy Community and on Rights and Obligati ons of Observers, set out in Annex C. 
Article 4 
The position to be adopted by the Community within the Ministerial Council of the Energy 
Community with regard to the acceptance of  Moldova, Ukraine, Norway and Turkey as 
Observers to the Energy Community is that thes e countries shall be acc epted as Observers to 
the Energy Community. 
Done at Brussels, 
 For the Council 
 The President 
 
EN 5   EN ANNEX A  
Draft 
PROCEDURAL ACT OF THE MINISTERIAL COUNCIL OF THE ENERGY COMMUNITY 
 
2006/…../MC-EnC: Ministerial Council Decision of 17 November 2006 on adoption of 
Energy Community Procedures for the Estab lishment and Implementation of Budget, 
Auditing and Inspection  
The Ministerial Council of  the Energy Community, 
Having regard to the Treaty Establishing the En ergy Community, and in pa rticular Article 74 
thereof, 
Having regard to Article 88 of the Tr eaty Establishing the Energy Community, 
Having regard to the proposal, made  by the European Commission, dated ……….., 
 HAS DECIDED AS FOLLOWS: 
Article 1 
Adopts the Procedures for the Establishment and Implementation of Budget of the Energy 
Community, Auditing and Inspection presente d in annex to this procedural act. 
Article 2 
The Director of the Energy Community S ecretariat shall be responsible for the 
implementation of these rules. 
Article 3 
This decision is addressed to all Parties an d institutions under the Treaty Establishing the 
Energy Community.  
Article 4 
The Director of the Energy Community Secretariat shall make this decision and its annex 
available to all Parties and institutions unde r the Treaty Establishing the Energy Community 
within 7 days after its adoption. 
 
EN 6   EN Article 5 
This decision shall enter into force upon adoption.  
 Done at …………… (place), ……… (date).    For the Ministerial Council ……………… (signed by Presidency) 
 
 
EN 7   EN Annex to the 
Procedural Act  
on  
Adoption of Energy Community Procedures for the Establishment and Implementation 
of Budget, Auditing and Inspection 
TITLE  I 
SCOPE  AND  APPLICATION 
Article 1  
 
This Procedural Act on Budgeta ry Issues (hereinafter “Rules ”) spells out the essential 
financial rules for the administrati on of the Energy Community budget. 
TITLE  II 
OBLIGATIONS  OF THE  PARTIES 
Article 2 
1. Parties assume full responsibility for th e operational expenditure of the Energy 
Community, by way of annual co ntributions as set out in  Annex IV of the Treaty, 
as stipulated in the relevant article 74 of the Treaty.  
 2. The annual contributions of the Parties are to be transferred to the Energy 
Community budget during the first quarter of each budget year.  
 3. Annual contributions of the Parties to the Energy Community budget are paid in 
Euros. 
 
4. If a Party fails to meet its obligat ion to the Energy Community, the Budget 
Committee shall report to the Ministeria l Council that in turn determine the 
existence of a breach by a Party pursu ant to article 91 of the Treaty.   
 
 
EN 8   EN  
TITLE  III 
BUDGETARY  PRINCIPLES 
Article 3 
The establishment and implementation of the budget of the Energy Community 
(hereinafter "the budget") shall comply with  the principles of unity and budget accuracy, 
annuality, equilibrium, unit of account, uni versality, specification, sound financial 
management and transparency as provided for in these rules. 
 
CHAPTER 1 
PRINCIPLE OF UNITY AND BUDGET ACCURACY 
Article 4 
The budget is the instrument which, for each fi nancial year, forecasts and authorises the 
revenue and expenditure considered necessary  for the functioning of the Energy Community 
and its relevant institutions.  
 
Article 5 
The budget shall comprise: 
a. Revenue made up of the financial contribu tions by the Parties to the Treaty, in 
accordance with Article 2(1) of these Rules, 
b. Revenue assigned to specific items of expenditure in accordance with Article 
15(1) of these Rules, 
c. Carry over of the previous year in accor dance with Article 10 of these Rules, 
d. The expenditure of the Energy Community, in accordance in Article 74 of the 
Treaty, including administrative expenditure. 
Article 6 
1. No revenue shall be collected and no expenditure effected unless booked to a line in 
the budget. 
 
EN 9   EN 2. An appropriation must not be entered in the budget, if it  is not for an item of 
expenditure considered necessary. 
3. No expenditure may be committed or aut horised in excess of the appropriations 
authorised by the budget. 
CHAPTER 2 
PRINCIPLE OF ANNUALITY 
Article 7 
1. According to Article 74 of the Treaty, the Ministerial C ouncil adopts ev ery two years 
the budget of two consecutive years. Each year is co vered by a separate budget 
endorsed by the Ministerial C ouncil on an annual basis. 
 2. The appropriations entered in the budget sha ll be authorised for one financial year 
which shall run from 1 January to 31 December. 
Article 8 
 
1. The budget shall contain administrative appr opriations which are non-differentiated 
and which shall consist of commitment a ppropriations and payment appropriations. 
 2. Commitment appropriations shall cover the total cost of the legal commitments 
entered into during the current financial year. 
 3. Payment appropriations shall cover payments  made to honour the legal commitments 
entered into in the current financial year and/or earlier financial years. 
 4. Administrative expenditure arising from c ontracts covering periods that extend beyond 
the financial year, either in accordance with loca l practice or relating to the supply of 
equipment, shall be charged to the budget of the financial year in which it is effected. 
 
Article 9 
1. The revenue of the Energy Community referred to in Article 5 shall be entered in the 
accounts for the financial year on the basis of the amounts collected during the financial year in accordance with  Article 2(2) of these Rules. 
2. The appropriations authorised in the budget for a relevant year may be used solely to 
cover expenditure committed and paid in th at financial year, and to cover amounts due 
against commitments from the previous financial year 
3. Commitments shall be entered in the accounts  on the basis of the legal commitments 
entered into up to 31 December. 
4. Payments shall be entered in the accounts for a financial year on the basis of the 
payments effected by the accounting officer by 31 December of that year at the latest. 
 
EN 10   EN Article 10 
1. Appropriations which have not been used at  the end of the fina ncial year for which 
they were entered shall be carried over into the following budget year as revenue.  
 2. Appropriations carried over shall be id entified respectively in the accounts. 
 
CHAPTER 3 
PRINCIPLE OF EQUILIBRIUM 
Article 11 
1. The budget revenue and expenditure must be in balance. 
 2. The Energy Community may not raise loans. 
 
CHAPTER 4 
PRINCIPLE OF UNIT OF ACCOUNT 
Article 12 
The budget shall be drawn up and imp lemented in Euro and the accounts shall be presented in 
Euro. 
CHAPTER 5 
PRINCIPLE OF UNIVERSALITY 
Article 13 
Total revenue shall cover total expenditure. All revenue and expenditure shall be entered in 
full without any adjustment against each other. 
 
Article 14  
1. Revenue earmarked for specific  purposes in the form of  donations (Other income) 
shall be used only to finance them in accordance with these Rules. 
 
2. All items of revenue within the meaning of  paragraph 1 shall cover all direct or 
indirect expenditure incurred by th e activity or purpose in question. 
 
3. The budget shall carry lines to accommodate the catego ries of assigned revenue 
referred to in paragraph 1 and shall indicate the amount. 
 
EN 11   EN Article 15  
1. The Director may accept donations to the Energy Community only upon in advance 
agreement of the Budget Committee, based on written information about the amount 
and the purpose of the donation and the financial charges involved.  
 
 
2. The yearly financial report to the Minister ial Council shall include  explicit information 
on proposed and received donations and their usage.  
Article 16 
1. The following deductions may be made from pa yment requests, invoic es or statements, 
which shall then be passed fo r payment of the net amount: 
 
(a)  penalties imposed on parties to cont racts, including procurement contracts; 
 
(b)  adjustments for amounts paid unduly, which can be made by means of direct 
deduction against a new payment of the sa me type to the same payee under the 
chapter, article and financial year in resp ect of which the exce ss payment was made, 
and which give rise to interim pa yments or payments of balances. 
 
2. Discounts, refunds and rebates on invoices a nd payment requests shall not be recorded 
as revenue of the Energy Community. 
 
3. Any negative balance sha ll be entered in the budget as expenditure. 
 
CHAPTER 6 
PRINCIPLE OF SPECIFICATION 
Article 17 
The appropriations in their entirety shall be  earmarked for specific purposes by title and 
chapter; the chapters sh all be further subdivided into articles and items. 
 
Article 18  
1. The Director shall take decisions on tran sfers of appropriations [(excluding human 
resources budget line)] within the lines of the b udget within the a total limit of [10%] 
of the appropriations for the financial year.  
 
2. The Director shall inform the Chairman of the Budget Committee within 7 days upon 
deciding on transfers in accordance w ith item 1 of this Article.  
 
EN 12   EN  
3. Other transfers than those referred to in paragraph 1 have to r eceive the preliminary 
agreement of the Budget Committee. 
Article 19 
Appropriations corresponding to as signed revenue may be transfe rred only, if they are used 
for the purpose to which the revenue is assi gned. Appropriations may be transferred only 
to budget lines for which the budget has authoris ed appropriations or carries a token entry. 
 
CHAPTER 7 
PRINCIPLE OF SOUND FINANCIAL MANAGEMENT 
Article 20 
1.  Budget appropriations shall be used in  accordance with the principle of sound 
financial management, i.e., in accordance with the principles of economy, efficiency and effectiveness. 
 2. The principle of economy requi res that the resources used by the Energy Community 
for the pursuit of its activities shall be ma de available in due time, in appropriate 
quantity and quality and at the best price.  
 
3. The principle of efficiency is concerned w ith the best relationship between resources 
employed and results achieved. 
 
4. The principle of effectiveness is concerne d with attaining the specific objectives set 
and achieving the intended results. These results shall be evaluated. 
 
5. The annual work programme of the Ener gy Community adopted by the Ministerial 
Council shall contain objectives and performance indicators. 
 
CHAPTER 8 
PRINCIPLE OF TRANSPARENCY 
Article 21 
1. The budget shall be drawn up and implem ented and the accounts presented in 
compliance with the principle of transparency. 
2. The budget and amending budgets, as finally  adopted, shall be published on the 
website of the Energy Community Secretariat. 
 
EN 13   EN TITLE  IV 
BUDGET  COMMITTEE 
Article 22 
1. A Budget Committee is hereby established. 
 2. The Budget Committee s upervises and advises the Director in the financial management 
of the operations of the En ergy Community and,  in case of disagreement with the 
Director, reports to the Ministerial Co uncil in accordance with these rules. 
 3. The Director shall inform re gularly the Budget Committee on all ma tters relating to 
budgetary and financial management. The B udget Committee shall be empowered to 
obtain any necessary information or expl anations regarding budgetary matters. 
Article 23 
1.  The Budget Committee of the Energy Comm unity shall consist of one member 
from each of the Contracting Parties and two members of the European Community, 
represented by the European Commission.  
 
2.  The European Community and each Contracting Party nominate their 
representatives. The term of office of the Budget Committee is 2 years. 
 
3.  Meetings of the Budget Committ ee will be chaired by the European 
Commission. The Chairperson may appoint a Co-chair.  
 
4. The Budget Committee shall hold at least four ordinary meetings a year. In addition it 
shall meet at the instance of the Chairperson or at the request  of at least one third of its 
members  
 
5. The Budget Committee shall adopt its internal rules of procedure. Its decisions may be 
taken by written procedure. Budget Committee shall act by simple majority of the 
votes including the positive vote of the Eur opean Community. In case of a equal votes, 
the European Community shall have the deciding vote.  
 
6. The Secretariat of the Budget Committee sh all be provided by the Energy Community 
Secretariat.  
 
7. The Energy Community Secretariat shall be re presented at the meetings of the Budget 
Committee without voting rights. 
 
EN 14   EN  
TITLE  V 
ESTABLISHMENT  AND  STRUCTURE  OF THE  BUDGET 
 
CHAPTER 1 
ESTABLISHMENT OF THE BUDGET 
Article 24 
 
The budget shall be established in  accordance with the Article 74 and 75 of the Treaty. It shall 
cover the operational expenses of the Ener gy Community necessary for functioning of its 
institutions in accordance with t he tasks of those defined in Title V ("Institutions of the 
Energy Community") of the Treaty. The expenditure of each Instit ution shall be set out in a 
different part of the budget. 
 
 
Article 25 
 
1. For each year, the Director of the Energy Community Secretariat shall propose to the 
European Commission an estimate of the revenue and expenditure of the Energy 
Community of year N+1, by 31 March each year  at the latest. This  proposal shall be 
accompanied by explanatory general budgetary assumptions.  
 2.  The European Commission shall submit this  estimate to the Mi nisterial Council and 
propose the amount of the appropriations for the Energy Community in accordance 
with Annex IV of the Treaty. It shall also pr opose the number of staff of the Secretariat 
it considers that the Energy Community need s to carry out the tasks given under the 
Treaty in the budget period in question. 
 
3. The budget proposal of the Energy Community , in  addition to the stipulations of point 
(2) above, shall contain the following:  
a. Outline of the work programme of the Energy Community for the budget 
period in question.  
 
EN 15   EN b. An establishment plan setting the number of permanent and temporary posts 
authorised within the limits  of the budget appropriations; 
c. a statement justifying the request for new posts- where there is a change in the 
number of persons in post. 
 
Article 26 
Any required amendment to the budget related to the estimated expenditures, including the 
number staff of the Secretariat, shall be subject of an amended budget adopted by the 
Ministerial Council by the same pro cedure as the initial budget.  
 
CHAPTER 2 
STRUCTURE AND PRESENTATION OF THE BUDGET 
 
Article 27 
The budget shall comprise a statement of revenue and a statement of expenditure.  
Article 28 
The budget shall show: 
 
1. In the statement of revenue: 
a. The estimated revenue of the Energy Community for the financial year in 
question;  
b. The estimated revenue of the Energy Co mmunity for the preceding  financial 
year;  
c.  Appropriate remarks on each revenue line; 
2. In the statement of expenditure: 
a. Appropriations for the financial year in question; 
b. Appropriations for the preceding financial year;  
c.  Appropriate remarks on each subdivision. 
 
EN 16   EN Article 29 
The establishment plan referred to in Article  24 shall show next to  the number of posts 
authorised for the financial year , the number authorised for th e preceding year and the number 
of posts actually filled. 
It shall constitute an absolute limit for the Energy Community; no appointment may be made 
in excess of the limit set.  
Article 30 
The draft Budget presented for adoption to the Mi nisterial Council shall contain an explanatory 
memorandum prepared by the Director and agreed by the Eu ropean Commission setting out the 
considerations which have guided the preparatio n of the budget, together  with a summary table 
showing the proposed appropriat ions apportioned by the major ite ms of the Energy Community 
expenditure. 
 
 
EN 17   EN TITLE  VI 
IMPLEMENTATION  OF THE  BUDGET 
CHAPTER 1 
GENERAL PROVISIONS 
Article 31 
The Director shall perform the duties of author ising officer. He shall implement the budget in 
compliance with these rules on the ground of Article 74 of the Treaty, on his own responsibility and within the limits of the appropriations authorised. 
Article 32 
1. The Director may delegate his powers of  budget implementation to staff of the 
Secretariat. Those so empowered may act  only within the limits of the powers 
expressly conferred upon them. 
Article 33 
1. All financial actors within the meaning of Chapter 2 of this Title shall be prohibited 
from taking any measures of budget implementation which may bring their own interests into conflict with those of the Energy Communit y. Should such a case arise, 
the actor in question must refrain from su ch measures and refer the matter to the 
competent authority. 
 2. There is a conflict of interests where the impartial and objective exercise of the 
functions of an actor in th e implementation of the budget or  an internal auditor is 
compromised for reasons involving famil y, emotional life, political or national 
affinity, economic interest or any other sh ared interest with the beneficiary or 
contractor. 
 
3. The competent authority referred to in para graph 1 shall be the im mediate superior of 
the member of staff concerned. If the member  of staff is the Director, the competent 
authority shall be the Chairp erson of the Budget Committee. 
Article 34 
Technical expertise tasks and administrative, preparatory or ancillary tasks involving 
neither the exercise of public authority nor the use of discretionary powers of judgement 
may be entrusted by contract to external privat e-sector entities or bodies, where this proves 
to be indispensable. 
 
 
EN 18   EN CHAPTER 2 
FINANCIAL ACTORS 
SECTION 1 
PRINCIPLE OF SEGREGATION OF DUTIES  
Article 35 
The duties of authorising offi cer and accounting officer shall be segregated and mutually 
incompatible. 
 
SECTION  3 
AUTHORISING OFFICER  
Article 36 
1. The authorising officer shall be responsible  for implementing revenue and expenditure 
in accordance with the budgetary principles as  described in Title III of this Procedural 
Act, and for ensuring that the requirements  of legality and regularity are complied 
with. 
 2. To implement expenditure, the authorising officer shall make budget commitments 
and legal commitments, shall validate e xpenditure and authorise payments in 
accordance with the relevant pr ovisions of this Procedural  Act, and shall undertake the 
preliminaries for the implem entation of appropriations. 
 3. Implementation of revenue shall compri se drawing up estimates of amounts 
receivable, establishing entitlements to be  recovered and issuing recovery orders. It 
shall involve waiving established entitlements where appropriate. 
 
4. The authorising officer shall assure that  all the supporting doc uments related to 
operations carried out for a period of five y ears from the date of the decision granting 
discharge in respect of implementati on of the budget are properly preserved. 
Article 37 
1. Having due regard to the risk s associated with the management environment and the 
nature of the actions fina nced, the authorising officer  shall put in place the 
organisational structure, internal mana gement, control systems and procedures 
(hereinafter “Internal Manage ment Rules of the Energy Community”) suited to the 
performance of his duties, including where appropriate ex post  verifications 
 2. Before an operation is authorised, the op erational and financial aspects shall be 
verified by members of sta ff other than the one who init iated the operat ion. Initiation 
and the ex ante  and ex post  verification of an operation sh all be separate functions.  
 
EN 19   EN  
3. The staff responsible for the verifications sh all be different from those initiating the 
operation and shall not be  their subordinates. 
Article 38 
The Director, as authorising officer, shall repo rt to Ministerial Council and inform the Budget 
Committee on the performance of his duties in the form of an annual activity report (hereinafter "Authorising officer's report"),  together with financial and management 
information.  
Article 39 
Any member of staff involved in the financial management and control of transactions who 
considers that a decision he is required by his s uperior to apply or to ag ree to is irregular or 
contrary to the budge tary principles, as defined in Title III of this Procedural Act, or the 
professional rules he is required to observe shall inform the Director in writing and, if the 
latter fails to take action within a reasonabl e period, the Budget Committee. In the event of 
evidence of any illegal activity, fraud or co rruption which may harm the interests of the 
Community, he shall inform the authorities  and bodies designated by the applicable 
legislation of the domicile country. 
 
Article 40 
Where powers of budget implementation are delegate d, Article 36 of th ese Rules shall apply 
mutatis mutandis to the authorised officers. 
 
S
ECTION 3 
ACCOUNTING OFFICER  
Article 41 
1. Upon proposal of the European Commission, th e Director shall appoint an accounting 
officer, in accordance with the Procedural Ac t applicable to Rules for the recruitment, 
working conditions and geographic equilibr ium of the Secretariat, who shall be 
responsible in the Secretariat for: 
a. Proper implementation of payments, colle ction of revenue and recovery of 
amounts established as being receivable; 
b. Preparing and presenting the accounts in accordance with Title VI; 
c. Keeping the accounts in accordance with Title VI; 
d. Implementing, in accordance with Title VI, the accounting rules and methods 
and the chart of accounts; 
 
EN 20   EN e. Laying down and validating the accoun ting systems and where appropriate 
validating systems laid down by the aut horising officer to supply or justify 
accounting information; 
f. Treasury management. 
 
2. Subject paragraph 3 the account ing officer is alone empower ed to manage monies and 
other assets. He shall be res ponsible for their safekeeping. 
 3. If necessary, the accounting officer may delega te certain tasks, with respect to the 
principle of segregation of duties.  
 
 
CHAPTER 3 
LIABILITY OF THE FINANCIAL ACTORS 
S
ECTION 1 
GENERAL RULES  
Article 42 
1. The responsibility under thes e Rules is personal.  
 2. Any member of staff may be required to ma ke good, in whole or in part, any damage 
suffered by the Energy Community as a result  of misconduct on his part in the course 
of or in connection with the performance of  his duties assigned to him in accordance 
with the relevant duty description.  
Article 43 
1.  Without prejudice to any disciplinary action, the authorising officer  may withdraw any 
delegation at any time temporarily or de finitively. The Chairman of the Budget 
Committee shall be immediately informed  for such an action with a proper 
justification.  
 
2.  Without prejudice to any disciplinary acti on, the accounting officer may at any time be 
suspended temporarily or definitively from his duties by th e Director, upon 
preliminary agreement of  the Eur opean Commission. On a proposal of the 
European Commission, the Director shall appoint an interim accounting officer and 
consequently a permanent accounting officer in accordance with the recruitment rules 
of the Energy Community.   
 
EN 21   EN Article 44 
1.    The provisions of this chapter are wit hout prejudice to the criminal law liability 
which the authorising officer and the persons referred to in this Chapter may incur as provided in the applicable national law of th e domicile country and in the provisions in 
force on the protection of the Energy Commun ities' financial interests and on the fight 
against corruption involving officials of th e Energy Community or officials of the 
Parties. 
 
2.    Any person, who has authority under thes e Rules, shall be respectively liable to 
disciplinary action in accordance with them and/or the applicable legislation of the domicile country. In the event of evidence of  illegal activity, fra ud or corruption which 
may harm the interests of the Energy Comm unity, the matter will be referred to the 
competent authorities and bodies. 
 
SECTION 2 
RULES APPLICABLE TO THE AUTHORISING OFFICER  
Article 45 
1.  The authorising officer may be required to make good, in whole or in part, any 
damage suffered by the Energy Community as  a result of serious misconduct on his 
part in the course of or in connection with the performance of his duties, in particular 
if he determines entitlements to be rec overed or issues rec overy orders, commits 
expenditure or signs a payment order without complying with this Procedural Act. The 
same shall apply where, through serious misconduct, he fails to draw up a document establishing an amount receivable or if he fails  to issue a recovery order or is, without 
justification, late in i ssuing it, or if he fails to issue a payment order or is late in issuing 
it, thereby rendering the Ener gy Community liable to civil action by third parties. 
 
2. An authorising officer by delegation who considers that a decision falling under his 
responsibility is irregul ar or contrary to the principles  of sound financial management 
shall inform the delegating authority in writ ing. If the delegating authority then gives a 
reasoned instruction in writing to the author ising officer by delegation to implement 
the decision in question, the latter must implement it and may not be held liable. 
 
3. In the event of delegation, the authorising o fficer shall continue to be responsible for 
the effectiveness of the internal management rules put in place and for the choice of the authorising officer by delegation. 
 
4. The Authorising officer shall not be held responsible for any rulings, provided by the 
Budget Committee and/or the Ministerial Counc il, in case they are strictly followed. 
Should the Authorising officer disagree with any of these ru lings, he has the right to 
notify the relevant authority in writing. Howe ver, he is obliged to follow the relevant 
rulings. 
 
EN 22   EN  
SECTION 3 
RULES APPLICABLE TO THE ACCOUNTING OFFICER  
Article 46 
In case of misconduct, the accounting officer may be  liable to disciplinary action, in particular 
but not exclusively, where: 
a. he loses or damages money, assets a nd documents in his keeping or causes 
them to be lost or damaged by his negligence; 
b. he alters bank accounts or postal gi ro accounts without notifying the 
authorising officer in advance; 
c. he recovers or pays amounts which are not in conformity with the 
corresponding recovery or payment orders; 
d. he fails to take all necessary measures to collect revenue due. 
 
CHAPTER 4 
REVENUE OPERATIONS 
SECTION 1 
GENERAL PROVISIONS  
Article 47 
The Energy Community shall receive  contributions from the Partie s as laid down in Article 2 
of this document.  
Article 48 
The funds paid to the Energy Community by the Pa rties shall bear interest for the benefit of 
the Energy Community budget. 
 
 
EN 23   EN SECTION 2 
ESTIMATE OF AMOUNTS RECEIVABLE  
Article 49 
An estimate of the amount receiva ble shall first be made by the authorising officer responsible 
in respect of any measure or s ituation which may give rise to or modify an amount owing to 
the Community body. 
 
SECTION 3 
ESTABLISHMENT OF AMOUNTS RECEIVABLE  
Article 50 
1. Establishment of an amount receivable is the act by which the authorising officer or 
authorising officer by delegation: 
(a) verifies that the debt exists; (b) determines or verifies the re ality and the amount of the debt; 
(c) verifies the conditions in  which the debt is due.  
2. Any amount receivable that is identified as  being certain, of a fixed amount and due 
must be established by a recovery order given to the accounting officer, accompanied 
by a debit note sent to the debtor. Both of these documents shall be drawn up and 
sent by the authorisi ng officer responsible.  
3. Without prejudice to the pr ovisions laid down in the rule s, contract or agreement 
applicable, any debt not repaid on the due da te laid down in the debit note shall bear 
interest. 
4. In duly substantiated cases , certain routine revenue items may be established 
provisionally. 
Provisional establishment shall cover the recovery of several individual amounts 
which need not therefore be  established individually.  
Before the end of the financial year, the authorising officer shall amend the amounts 
established provisionally to  ensure that they corres pond to the amounts receivable 
actually established.  
 
EN 24   EN Article 51 
The authorisation of recovery is  the act whereby the authorisin g officer responsible instructs 
the accounting officer, by issuing a recovery orde r, to recover an amount receivable which 
he/she has established. 
Article 52 
1. Amounts wrongly paid shall be recovered. 
2. The accounting officer shall act on recove ry orders for amount s receivable duly 
established by the authorising officer or au thorising officer responsible. He/she shall 
exercise due diligence to en sure that the Energy Community  receives its revenue and 
shall see that its rights are safeguarded. 
3. Where the authorising officer responsible  is planning to waiv e recovery of an 
established amount receivable, he/she shall ensure that the waiver is in order and 
complies with the principle of sound financial management. 
Such a waiver shall be by decision of th e authorising officer, which must be 
substantiated. The authorising office r may not delegate such a decision. 
The waiver decision shall state what action ha s been taken to secure recovery and the 
points of law and fact on which it is based.  
4. The authorising officer responsible shall cancel an established amount receivable 
when the discovery of a mistake as to a po int of law or fact re veals that the amount 
had not been correctly established. Such  cancellation shall be by decision of the 
authorising officer responsible and shall be suitably substantiated.  
5. The authorising officer responsible shall adjust the amount of an established debt 
upwards or downwards when the discovery of  a factual error entails the alteration of 
the amount of the debt, provided that this correction does not involve the loss of the 
established entitlement of the Energy Commu nity. Such an adjustment shall be by 
decision of the authorising officer respons ible and shall be su itably substantiated. 
Article 53 
1. Upon actual recovery of the sum due, the accounting officer shall make an entry in 
the accounts and shall inform the authorising officer responsible.  
2. A receipt shall be issued in respect of  all cash payments made to the accounting 
officer. 
 
EN 25   EN Article 54 
1. If actual recovery has not taken place by the due date stipulated in  the debit note, the 
accounting officer shall inform the authoris ing officer responsible and immediately 
launch the procedure for effecting recove ry by any means offered by the law, 
including, where appropriate, by offsetting a nd, if this is not possible, by enforced 
recovery.  
2. The accounting officer shall recover amounts by offsetting them against equivalent 
claims that the Energy Community has on a ny debtor who himself has a claim on the 
Community body that is certain, of a fixed amount and due, provided that offsetting 
is legally possible. 
Article 55 
The accounting officer, in collaboration with th e authorising officer responsible, may allow 
additional time for payment only at  the written request of the de btor, with due indication of 
the reasons, provided that the following two conditions are met: 
(a) the debtor undertakes to pay interest at the rate specified for the entire additional 
period allowed, starting from the date on which the payment was originally due; 
(b) in order to safeguard th e rights of the Energy Comm unity, the debtor provides a 
financial guarantee covering both th e principal sum and the interest. 
 
CHAPTER 5 
EXPENDITURE OPERATIONS 
Article 56 
1. Every item of expenditure shall be committed, validated, authorised and paid. 
 2. Every commitment of expenditure shall be preceded by a justified financing decision. 
 
3. The work programme of the Energy Community  shall be equivalent to the financing 
decisions for the activities it covers, provide d that they are clearly identified and the 
underlying criteria are sp elled out precisely.  
 
4. Administrative appropriations related to the every-day operations of the Energy 
community and its institutions may be impl emented without a prior financing decision. 
 
EN 26   EN  
SECTION 1 
COMMITMENT OF EXPENDITURE  
Article 57 
1. The budget commitment is the operation re serving the appropriation necessary to 
cover subsequent payments to honour a legal commitment. 
 
2. The legal commitment is the act whereby th e authorising officer responsible enters 
into or establishes an obligation whic h results in a charge for the budget. 
 
3. The budget commitment is individual when  the beneficiary and the amount of the 
expenditure are known.  
 
4. The budget commitment is global when at le ast one of the elem ents necessary to 
identify the individual commi tment is still not known. 
 
Article 58 
1. In respect of any measure which may give rise to expenditure chargeable to the 
budget, the authorising officer responsible must first make a budget commitment before entering into a legal obl igation with third parties. 
 2. Individual legal commitments relating to  individual budget commitments shall be 
concluded by 31 December of the current financial year. 
 3. The legal commitments entered into for actions extending over more than one 
financial year and the corresponding budget co mmitments shall, save in the case of 
officials expenditure, have a final date for implementation set in compliance with the principle of sound financial management. 
Article 59 
1. In respect of any measure which may give rise to expenditure chargeable to the 
budget, the authorising officer responsible  must first make a budget commitment 
before entering into a legal obl igation with third parties. 
2. Global budget commitments sha ll cover the total cost of the corresponding individual 
legal commitments concluded up to 31 December of year n + 1. 
3. Individual legal commitments relating to  individual budget commitments shall be 
concluded by 31 December of year N. 
 
EN 27   EN 4. At the end of the periods referred to in the paragraphs 2 and 3, the unused balance of 
these budget commitments shall be decommitted by the authorising officer responsible. 
5. The legal commitments entered into for actions extending over more than one 
financial year and the corresponding budget commitments shall, save in the case of staff expenditure, have a fi nal date for implementation set in compliance with the 
principle of sound financial management. 
Any parts of such commitments which have not been executed six months after that 
final date shall be decommitted  
6. Where a legal commitment has not then result ed in a payment afte r a period of three 
years, the authorising officer responsible shall decommit it. 
Article 60 
When adopting a budget commitment, the authoris ing officer responsible shall ensure that: 
b. The expenditure has been charged to the correct item in the budget; 
c. The appropriations are available; 
d. The expenditure conforms to the applicab le provisions, in particular those of 
the Treaty, the internal management ru les of the institutions of the Energy 
Community;  
e. The principle of sound financial management is complied with. 
S
ECTION 2 
VALIDATION OF EXPENDITURE  
Article 61 
Validation of expenditure is the act wher eby the authorising o fficer responsible: 
a. Verifies the existence of the creditor's entitlement; 
b. Verifies the conditions in which payment is due; 
c. Determines or verifies the rea lity and the amount of the claim. 
Article 62 
1. Validation of any expenditure shall be ba sed on supporting documents attesting the 
creditor's entitlement, on the basis of a st atement of services actually rendered, 
supplies actually delivered or work actually  carried out, or on the basis of other 
documents justifying payment.  
 
 
EN 28   EN 2. The validation decision shall be expressed by the signing of a "passed for payment" 
voucher by the authorising officers responsible. 
 
SECTION 3 
AUTHORISATION OF EXPENDITURE  
Article 63 
1. Authorisation of expenditure is the act wh ereby the authorising officer responsible, 
by issuing a payment order, instructs the accounting officer to pay an item of 
expenditure which he has validated. .  
 
2. The payment order shall be dated and signe d by the authorising officer responsible, 
then sent to the accounting officer. The supporting documents shall be kept by the 
authorising officer responsible in  accordance with Article 36(4). 
 
3. Where appropriate, the payment order sent  to the accounting officer shall be 
accompanied by a document certifying that the goods have been entered in the 
inventories referred to in Article 71. 
 
SECTION 4 
PAYMENT OF EXPENDITURE  
Article 64 
1. Payment shall be made on production of pr oof that the relevant action has been 
carried out in accordance with the provisions  of the basic act and shall cover one of 
the following operations: 
a.  Payment of the entire amount due; 
b.  Payment of the amount due in any of the following ways: 
i. pre-financing, which may be divided into a number of payments;  
ii.  one or more interim payments;  
iii.  payment of the balance of the amounts due. 
Pre-financing shall count in full or in part agai nst the interim payments. 
The entire pre-financing a nd interim payments shall c ount against the payment of 
balances. 
 
EN 29   EN 2. A distinction shall be made in the account s between the different types of payment 
referred to in paragraph 1 at the time they are made. 
 3. The validation, authorisation and payment of expenditure must be carried out within 
the time-limits specified in - and in accord ance with the provisi ons of - the detailed 
rules for implementation provided for in Article 88. 
Article 65 
Payment of expenditure shall be made by the acc ounting officer within the limits of the funds 
available. 
 
EN 30   EN TITLE  VII 
PROCUREMENT  AND  GRANTS 
Article 66 
As regards procurement, the relevant provisi ons for public procurement of the domicile 
country shall apply. 
Article 67 
The Energy Community Secretar iat may not award grants. 
 
TITLE  VIII 
PRESENTATION  OF THE  ACCOUNTS  AND  ACCOUNTING 
CHAPTER 1 
PRESENTATION OF THE ACCOUNTS 
Article 68 
The annual accounts of the Energy Community shall comprise: 
a. The financial statements of the Energy Community  
b. The report on implementation of th e budget of the Energy Community  
c. The annual accounts of the Energy Community shall by accompanied by 
explanations referring to the financial statements, consisting of the balance 
sheet, income statement as well as asse ts analysis of the Energy Community.  
 
Article 69 
The accounts must comply with the fundame ntal accounting rules and be accurate and 
comprehensive and present a true and fair view: 
 
EN 31   EN a. as regards the financial statements, of the assets and liabilities, charges and 
income, entitlements and obligations not s hown as assets or liabilities and cash 
flow; 
b. as regards report on budget impleme ntation, of revenue  and expenditure 
operations 
 
Article 70 
The financial statements shall be drawn up in accordance with the generally accepted 
accounting principles, namely: 
a. Going concern; 
b. Prudence; 
c. Consistent accounting methods; 
d. Comparability of information; 
e. Materiality[]; 
f.  No netting; 
g. Fair presentation; 
h. Accrual-based accounting. 
Article 71 
1.  In accordance with the principle of accrual-based accounting revenue and 
expenses are recorded in the period in which they are earned or incurred regardless of 
the date of payment or collection.  
 2. The value of assets and liabilities shall be determined in accordance with the 
valuation rules laid down by the accounting methods provi ded for in International 
Accounting Standard and, if necessary, in Na tional standards of the domicile country.  
Article 72 
1. The financial statements shall be presented in Euro and shall comprise: 
a. The balance sheet and the income statement, which represent the assets and 
liabilities and result of the financial y ear at 31 December in comparison with 
the previous year; 
b. The cash-flow statement showing amount s collected and disbursed during the 
year and the final treasury position; 
 
EN 32   EN c. The statement of changes in e quity during the financial year. 
2.  The annex to the financial statemen ts shall supplement and comment on the 
information presented in the statements refe rred to in paragraph 1 and shall supply 
all the additional information prescrib ed by internationall y accepted accounting 
practice where such information is releva nt to the Energy Community's activities. 
 
CHAPTER 2 
ACCOUNTING 
SECTION 1 
COMMON PROVISIONS  
Article 73 
1. The accounting system of the Energy Co mmunity is the set of manual and 
computerized procedures and controls that provide for identifying relevant 
transactions or events; prep aring accurate source documen ts, entering data into the 
accounting records accurately, processing transactions ac curately, updating master 
files properly, and generating a ccurate documents and reports. 
 2. The accounts shall consist of general accounts and budget accounts. These accounts 
shall be kept in Euro on the basis of the calendar year. 
 
3. The figures in the general accounts and th e budget accounts shall be adopted at the 
close of the budget year so that the account s referred to in Chapter 1 can be drawn up. 
 4. The accounting officer shall adopt accounti ng rules and methods which take account 
of the internationally accep ted accounting standards for the public sector, and if 
necessary of the rules applie d by the public authorities of  the [domicile country] or 
[European Communities]. 
 
S
ECTION 2 
GENERAL ACCOUNTS  
Article 74 
The general accounts shall record, in chronolog ical order using the double entry method, all 
events and operations which affect the economi c and financial situati on and the assets and 
liabilities of the Energy Community.  
 
 
EN 33   EN Article 75 
1. Movements on the accounts and the balances shall be entered in the accounting 
ledgers. 
 2. All accounting entries, including adjustme nts to the accounts, shall be based on 
supporting documents, to which they shall refer. 
 
3. The accounting system must be such as to leave a trail for all accounting entries. 
Article 76 
The accounting officer of the Energy Community sh all, after the close of the budget year and 
up to the date of presentation of the final accounts, make any adjustments which, without 
involving disbursement or collec tion in respect of that year, ar e necessary for a true and fair 
presentation of the accounts in compliance with these rules. 
 
S
ECTION 3 
BUDGET ACCOUNTS  
Article 77 
1. The budget accounts shall provide a detailed record of budget implementation. 
 2. For the purposes of paragraph 1, the budge t accounts shall record  all budget revenue 
and expenditure operations provided for in Title V of these rules. 
 
CHAPTER 3 
PROPERTY INVENTORIES 
Article 78 
The Energy Community shall keep inventories showing the quantity and value of all the 
tangible, intangible and financial assets  constituting Energy Community property. 
 
  
 
EN 34   EN TITLE  IX 
EXTERNAL  AUDIT  AND  DISCHARGE 
CHAPTER 1 
EXTERNAL AUDIT 
Article 79 
Each year, the accounting officer establishes th e accounts of the previous year no later than 
the 31 March. These accounts are validated by the Director. 
Article 80 
The Director shall, subject to approval by the Budget Committee, de signate an independent 
External Auditor to carry out the annual audit of the Energy Community as defined under the 
Treaty, the Terms of Reference fo r which shall also be approved  by the Budget Committee. The 
term of service of the External  Auditors is renewable every year, unless otherwise specified by 
the Ministerial Council. 
Article 81 
1. The External Auditors shall submit to  the Ministerial C ouncil and the Budget 
Committee a report, together with the statemen t of assets and liabilities and certified 
accounts, not later th an eight months after the end of the financial year to which they 
relate. 
 
2. The Director shall make such observations as he considers appropriate on the 
External Auditors' report. 
 
3. The External Auditors shall conduct such a udits as deemed necessary, in accordance 
with their approved Terms of Reference The External Auditors shall, in particular, 
inspect the accounting records and proce dures of the Energy Community for the 
purpose of verifying the accuracy and complete ness of the records. The external audit 
determines the overall validity of financial statements. 
 
4. The External Auditors shall as a part of  the annual audit, re view the Internal 
Management Rules of the Energy Commun ity and its operational implementation. 
 
5. The External Auditors shall submit an audi t report and certifie d accounts, together 
with a statement of assuranc e relating to the reliability of  the accounts and the legality 
and regularity of the underlying transactions, to the Budget Committee so that they may be available to the Ministerial Council not later than eight months after the end 
of the financial year to which the account s relate. The Budget Committee shall make 
to the Ministerial Council such observat ions on the documents submitted by the 
Auditors as it may consider appropriate. 
 
EN 35   EN  
CHAPTER 2 
DISCHARGE 
Article 82 
 Taking account of the poten tial observations of the Budget  Committee, and with a view 
to granting the discharge to the Director, th e Ministerial Council sha ll examine the certified 
accounts and financial statements of the Energy Community. It shall also examine the report 
of the external auditors and the auditors' statement of assurance. 
Article 83 
On the basis of this report, and, the Minister ial Council shall discharge the Director from his 
management a nd administrative responsibilit y in respect of the budge t before 31 December 
N+ 1.  
Article 84 
1. The Director shall take all appropriate step s to act on the observ ations accompanying 
the Ministerial Council’s discharge decision. 
2. At the request of the Ministerial Council or  of the Budget Comm ittee, the Director 
shall report on the measures taken in the li ght of these observations and comments.  
 
 
EN 36   EN TITLE  X 
TRANSITIONAL  AND  FINAL  PROVISIONS 
Article 85 
[These rules are in compliance with the funda mental principles of the accounting of the 
Commercial Code of the domicile country as well as of the International Accounting 
Standards.]  
Article 86 
The Ministerial Council, Budget Committee and the Parties to the Treaty shall be empowered to 
obtain any necessary information or  explanations regarding budgetary matters within their fields 
of competence. 
Article 87 
Upon approval of the European Commission, the Dire ctor shall, as far as  is necessary, adopt 
detailed rules for implementing of these ru les applicable to the Energy Community.  
Article 88 
Till the formal establishment of a Budget Comm ittee, its functions will be performed by the 
European Commission.  
Article 89 
This Procedural Act shall be binding in its entirety on all Parties to the Treaty and the 
Institutions set up under the Treaty. 
The Ministerial Council may amend these rules upon a proposal of the European Community.  
 This Procedural Act has been adopted by th e Ministerial Council of  the Energy Community 
on the ground of Article 74 of  the Treaty Establishing the Energy Community on ………. and 
become effective upon the day of their adoption.  
 
EN 37   EN ANNEX B  
 
Draft  
 
   
PROCEDURAL ACT 
OF THE MINISTERIAL COUNCIL  
OF THE ENERGY COMMUNITY 
 
 
2006/…../MC-EnC: Ministerial Council Deci sion of 17 November 2006 on the 
implementation of Annex IV of the Treaty  establishing the Energy Community with 
respect to Bulgaria and Romania becoming  Participants of the Energy Community 
 
The Ministerial Council of  the Energy Community, 
Having regard to the Treaty Establishing the En ergy Community, and in particular to Articles 
86 and 99 thereof, 
Having regard to Article 73 of Treaty Esta blishing the Energy Community, which provides 
for a procedure for a review of Annex IV of th at Treaty and that procedure can be applied by 
analogy, 
 Whereas,  (1) Annex IV provides that Bulgaria and Roma nia shall, respectivel y, cover 1 and 2.2 % of 
the Energy Community Budget. 
(2) On 1
st January 2007, Bulgaria and Romania will jo in the European Union, and thus will 
become Participants in the Energy Community as provided for  Article 99 of the Treaty and 
without any further act of any institution of the Energy Community being necessary to that 
effect,  
 (3) From 1
st January 2007, the contributions of Bulg aria and Romania to the budget of the 
Energy Community specified in Annex IV to th e Treaty will, in accordance with the internal 
rules of the European Community respectivel y be covered by the European Community,  
 
EN 38   EN  
HAS DECIDED AS FOLLOWS:  
Article 1 
The financial contributions to the budget of the Energy Commun ity of Bulgaria and Romania 
upon their accession to the European Union sh all be covered by the European Community. 
Article 2 
This decision is addressed to all Parties and institutions under the Treaty Establishing the 
Energy Community.  
Article 3 
The Director of the Energy Community Secretar iat shall make this decision and its annex 
available to all Parties and institutions unde r the Treaty Establishing the Energy Community 
within 7 days after its adoption. 
Article 4 
This decision shall enter into force upon adoption.  
Done at …………… (place), ……… (date).  For the Ministerial Council  ……………… (signed by Presidency)  
 
EN 39   EN ANNEX C  
 
Draft 
 
 
PROCEDURAL ACT 
OF THE MINISTERIAL COUNCIL  
OF THE ENERGY COMMUNITY 
 
 
2006/…../MC-EnC: Ministerial Council Decision  of 17 November 2006 on adoption of 
Procedural Rules on Acceptance of Countri es as Observers to the Energy Community 
and on Rights and Obligations of Observers  
 
The Ministerial Council of  the Energy Community, 
Having regard to the Treaty Establishing the En ergy Community, and in particular Article 86 
thereof, 
 Having regard to the proposals, made by the Permanent High Level Group, dated 16 
November 2006,  
 Having regard to Article 96 of the Treaty,  HAS DECIDED AS FOLLOWS:   
Article 1 
Adopts Procedural Rules on Acceptance of Coun tries as Observers to the Energy Community 
and on Rights and Obligations of Observers as pr esented in annex to th is procedural act.  
Article 2 
 
EN 40   EN This decision is addressed to all Parties and institutions under the Treaty Establishing the 
Energy Community.  
Article 3 
The Director of the Energy Community Secretar iat shall make this decision and its annex 
available to all Parties and institutions unde r the Treaty Establishing the Energy Community 
within 7 days after its adoption. 
Article 4 
This decision shall enter into force upon its adoption. 
Done at …………… (place), ……… (date).  For the Ministerial Council ……………… (signed by Presidency)  
 
 
  
 
  
 
  
 
 
 
  
 
EN 41   EN Annex to the 
Procedural Act 
On 
Rules on Acceptance of Countries as Obs ervers to the Energy Community and Rights 
and Obligations of Observers 
 
I. GENERAL  
 
1. Without prejudice to Article 96(1), second se ntence, of the Treaty Establishing the 
Energy Community (hereinafter: “the Treaty”) ,  these rules establish the procedure for 
the acceptance of a country as an Observer  to the Energy Community in accordance 
with Article 96 of the Treaty. These Rules fu rther set forth the rights and obligations 
of the Observer(s).  
 
2. In accordance with the Treaty and its objectives , Observer status might be granted to a 
neighboring country ready to  gradually take up the acquis .   
 
II. PROCEDURAL STEPS  
 
1. The Observer status is granted by the Mi nisterial Council of the Energy Community 
upon a reasoned request by the applicant country submitted to the Presidency. 
 2. The Presidency shall notify the request to the Ministerial Council at the next meeting 
of the Ministerial Council following the r eceipt of the request. In parallel, the 
Presidency, after consultation with the Vice -Presidents and prior to the Ministerial 
Council’s meeting, may ask the Secretariat to prepare additional information in 
relation to the request. 
 
3. The decision of the Ministerial Counc il under subparagraph 1 shall be taken 
unanimously. It shall refer to Article 96(1) of the Treaty and these Rules. 
 
 
III. PRINCIPAL RIGHTS AND OBLIGATIONS OF THE OBSERVERS 
 
 
1. The Observers to the Energy Community have  the rights to be represented at the 
meetings of the Ministerial Council, th e Permanent High Level Group, the Regulatory 
Board and the Fora (one representative pe r meeting, excluding the Fora, where any 
Observer might have up to three representatives).  
 
EN 42   EN  
2. The Observers are entitled to receive any information distributed before, during and 
after the relevant meetings which is  related to the discussed topics.  
 
3. The Observers follow any requirements for confidentiality, which are valid to the 
Parties.  
 
4. The Observers may make statements upon re quest and consequent permission by the 
chair of the meeting at which they want to make statement. 
 
5. Observers have no right to  participate in voting. 
 6. In case of conflict between these Rules and the specific Internal Rules of Procedure of 
any institution of the Energy Community, th e Internal Rules of Procedure of the 
institution in question shall prevail. 
 
IV. MISCELLANEOUS AND CONCLUSIVE REMARKS
 
 
1. The Observer status, granted to any country  by the Ministerial Council, prior to the 
adoption of these rules, shall not be affected by them. 
 2. The rules have been adopted by the Mini sterial Council on the ground of Articles 86 
and 96 of the Treaty. 
 
3. The rules enter into force on the day of their adoption. 
 
 These rules have been adopted on …………………..