Proposal for a Council Decision on establishing the European Community position within the Ministerial Council of the Energy Community (Tirana, 11 December 2008)
Date: 2008-11-21
Institutions: European Commission
Subjects: European treaties, agreement (EU), electrical energy, energy grid, energy policy, energy transport, trans-European network

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.11.2008 
COM(2008) 783 final 

Proposal for a 

COUNCIL DECISION 

on establishing the European Community position within the Ministerial Council of the 
Energy Community (Tirana, 11 December 2008) 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The Ministerial Council of the Energy Community will meet on 11 December 2008 in Tirana 
(Albania).  In  order  for  the  European  Community  to  take  part  in  the  relevant  decisions,  it  is 
necessary  to  establish  the  position  of  the  European  Community  pursuant  Article  300  of  the 
Treaty and in accordance with the provisions of the Council Decision of 29 May 2006 on the 
conclusion by the European Community of the Energy Community Treaty. 

The  proposal  for  a  Council  Decision  covers  all  agenda  items  for  which  a  decision  by  the 
Ministerial  Council  is  expected  as  indicated  hereafter.  The  other  agenda  items  are  also 
mentioned below for information.  

1. 

ELEMENTS FOR DECISION 

1.1. 

Coordinated Auction Office - location 

Preparatory  works  to  establish  a  Coordinated  Auction  Office  in  charge  of  cross-
border capacity allocation and congestion management are well-advanced. A critical 
mass  of  electricity  transmission  system  operators  and  energy  regulators  from  the 
region is supporting the project. They indicated that a political orientation concerning 
the location of the Office would considerably help the process and allow for practical 
establishment in 2009-2010. Among the Contracting Parties, both Croatia and Serbia 
have  indicated  their  interest  to  host  the  Coordinated  Auction  Office.  The 
Commission  will  favour  a  consensus  upon  the  location  receiving  more  acceptance 
and support.  

1.2. 

Procedural  Act  relating  to  the  establishment,  the  composition  and  the 
functioning of a Coordination Group on Security of Supply 

Following the political orientation decided at the last Ministerial Council meeting in 
June  2008,  the  Ministerial  Council  is  expected  to  decide  upon  the  setting-up  of  a 
Security of Supply Coordination Group based on voluntary coordination between the 
Parties  (no  decision-making  power).  This  Group  would  cover  both  electricity  and 
gas. In order to avoid unnecessary costs and to ensure synergies, it would meet once 
a  year  in  connection  with  a  PHLG  meeting.  In  addition,  it  could  hold  ad-hoc  joint 
sessions  with  the  EU  Gas  Coordination  Group.  Any  Contracting  Party  facing  a 
situation of imminent threat could request the Chair to convene an ad hoc meeting. 
Participation  of  industry  stakeholders  and  relevant  consumer  organisation  is 
foreseen. 

1.3. 

Decision  concerning  the  extension  of  certain  provisions  of  the  Energy 
Community  Treaty  to  the  oil  sector  and  the  establishment  of  an  annual  Oil 
Forum 

Second,  the  Ministerial  Council  will  extend  the  scope  of  the  Energy  Community 
Treaty to the oil sector (crude oil, oil products and oil infrastructures). The proposed 
text reflects a prudent and progressive approach. It excludes from the scope of the oil 
dimension  those  articles  of  the  Treaty  that  are  considered  difficult  to  implement  in 
relation to oil, at least in a first period. This is the case for the provisions on mutual 
assistance, external energy trade and technical standards. Further, it does not define 

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for  the  moment  a  list  of  EU  acquis,  but  indicate  that  this  list  –  together  with  a 
timetable for implementation – should be elaborated by June 2010. This will allow us 
to examine with due care the question of oil stocks, if necessary by means of a study 
that could be done in 2009. Finally, it provides for the establishment of an oil forum, 
as  requested  by  several  Member  States  and  Countries  in  the  region,  which  first 
edition could take place in the second semester 2009. 

2. 

OTHER ELEMENTS 

2.1. 

Points without debate 

The Commission will approve the conclusions of the preceding two meetings of the 
Permanent  High  level  Group  and  the  annual  activity  report  to  be  addressed  to 
Parliaments pursuant Article 52 of the Energy Community Treaty. 

The Commission will also take note of the following reports: 

–  Report on the implementation of the Work Programme of the Energy Community 

for 2008; 

–  Preliminary  Report  on  the  implementation  of  the  budget  of  the  Energy 

Community for the period 01.01.2008- 31.12.2008; 

–  Report on the implementation of Generally Applicable Standards. 

2.2. 

Implementation of the Treaty 

The Commission will take note of the report. It will positively assess the substantial 
progress  realised  in  most  Contracting  parties  this  year,  but  further  underline  the 
necessity to complement the legal framework by the necessary secondary legislation 
and implementation acts. Besides, the Commission will underline the importance of a 
regulatory  framework  favouring  investment  and  the  importance  to  quickly  find 
negotiated solutions to disputes involving investors.  

2.3. 

Social dimension  

The  Commission  will  take  note  of  the  report,  in  particular  as  regards  the  results  of 
the Social Forum held on 18-19 November 2008 and further support progress in the 
establishment of the social action plans by the Contracting Parties. 

2.4. 

Energy Efficiency 

The Commission will take note of the intermediary report presented by the Chair of 
the  Energy  Efficiency  Task  Force,  with  the  understanding  that  the  final  report  – 
including  recommendations  –  is  expected  for  the  next  Ministerial  Council  in  June 
2009.  

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Proposal for a 

COUNCIL DECISION 

on establishing the European Community position within the Ministerial Council of the 
Energy Community (Tirana, 11 December 2008) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
300 paragraph 2, second subparagraph, 

Having  regard  to  Council  Decision  on  the  Conclusion  by  the  European  Community  of  the 
Energy Community Treaty (2006/500/EC – 29 May 2006), and in particular Article 4 and 5 
thereof, 

Having regard to the proposal from the Commission, 

HAS DECIDED AS FOLLOWS:  

Sole Article 

In view of the meeting of the Ministerial Council of the Energy Community to take place in 
Tirana  on  11  December  2008,  the  position  of  the  Community  regarding  the  issues  falling 
under  the  scope  of  Article  300  paragraph  2  second  subparagraph  of  the  Treaty  is  set  out  in 
Annex to this decision. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

European Community position 

•  The  European  Community  supports  the  establishment  of  a  Coordinated  Auction 
Office  for  cross-border  capacity  allocation  and  congestion  management  in  the 
field of electricity. It favours a consensus as regards the location of the Office in 
one of the Contracting Party, with the understanding that the location shall widely 
be  supported  within  the  Contracting  Parties  and  Member  States  participating  in 
the setting-up of the Office.  

•  The European Community approves the adoption of the Procedural Act relating to 
the establishment, the composition and the functioning of a coordination group on 
electricity and gas security of supply.  

•  The European Community approves the adoption of the Decision concerning the 
extension of certain provisions of the Energy Community Treaty to the oil sector 
and the establishment of an annual oil forum. 

•  The  European  Community  approves  the  adoption  of  an  updated  list  of  priority 

infrastructure projects in the Contracting Parties.  

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