Proposal for a COUNCIL DECISION on establishing the European Union position within the Ministerial Council of the Energy Community (Chişinău, 6 October 2011)
Date: 2011-08-10
Institutions: European Commission
Subjects: Armenia, budgetary discharge, budgetary resources, electricity supply, energy consumption, gas supply, household electrical appliance, labelling, revision of an agreement

EUROPEAN COMMISSION 

Brussels, 10.8.2011 
COM(2011) 487 final 

2011/0214 (NLE) 

Proposal for a 

COUNCIL DECISION 

on establishing the European Union position within the Ministerial Council of the 
Energy Community (Chişinău, 6 October 2011) 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The Ministerial Council of the Energy Community will meet on 6th October 2011 in Chişinău 
(Republic of Moldova). 

The position of the European Union on the decisions that are on the agenda for this meeting 
needs to be established pursuant Article 218, paragraph 9, of the Treaty on the functioning of 
the European Union and in accordance with the provisions of Council Decision 2006/500/EC 
of  29  May  2006  on  the  conclusion  by  the  European  Community  of  the  Energy  Community 
Treaty. 

Under  Article  6  of  Decision  2006/500/EC,  the  position  of  the  European  Union  must  be 
expressed by the representative of the European Commission within the Ministerial Council. 

This  Proposal  for  a  Council  Decision  covers  all  agenda  items  for  which  a  decision  by  the 
Ministerial Council is expected. 

2. 

BUDGETARY MATTERS 

2.1 

Approval of the financial management for 2010 

The European Union must approve the Director’s financial discharge for 2010 on the basis of 
the Audit Report of 31 December 2010, the Budget Committee Report on Audit for 2010 and 
the Director’s Report on Execution of the Budget. 

2.1.2.  Approval of the budget and financial contributions for the period 2012 – 2013 

The European Union must approve the budget for 2012-2013, subject to the approval of the 
corresponding appropriations by the budget authority for both years. This budget is consistent 
with the Commission’s proposal, adopted by the Commission Decision of 20 June 2011. 

The  total  budget  must  not  exceed  € 3 230 000  for  2012  and  € 3 342 200  for  2013.  These 
amounts  represent  a  decrease  (-4 %  and  -1 %,  respectively)  compared  with  the  budget 
approved  for  2011,  and  are  based  on  the  lessons  learnt  from  the  actual  utilisation  of  the 
previous budget. 

The European Union must agree to the Energy Community taking on two additional members 
of  staff  in  2012  (one  administrative  and  financial  assistant  and  one  expert  on  EU 
environmental policy and climate change) and one additional staff member in 2013. 

The  European  Union  must  also  agree  to  the  amendments  to  Annex  IV  of  the  Energy 
Community Treaty, which details the budget contributions from the European Union and from 
each  Contracting  Party.  Following  the  accession  of  Moldova  and  Ukraine  to  the  Energy 
Community, all contributions will be changed; this should mean a reduction in the European 
Union’s total contribution. 

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2.2. 

LEGISLATIVE DEVELOPMENTS 

2.2.1. 

Implementation of the ‘Third Package’ (internal market for electricity and gas) 

The  European  Union  must  approve  the  Ministerial  Council  Decision  on  the  implementation 
by the Energy Community of Directive 2009/72/EC, Directive 2009/73/EC, Regulation (EC) 
No 714/2009 and Regulation (EC) No 715/2009. 

The adaptations contained in the Ministerial Council Decision, under Article 24 of the Energy 
Community  Treaty,  are  in  line  with  those  proposed  in  the  Commission's  decision  of  6  May 
2011 (C(2011) 3013 final). 

The  EU  must  also  approve  amendments  to  the  Energy  Community  Treaty,  in  line  with  the 
negotiating  mandate  set  out  in  Council  Decision  of  28  June  2011.  It  is  understood  that 
amending the Treaty is not an essential part of the decision on the Third Package and could be 
decided at a later stage. 

2.2.2.  Adoption of delegated acts on Energy Efficiency (‘labelling’) 

The Ministerial Council decisions on adopting the basic EU legislation on energy efficiency 
(Ministerial  Council  Decision  2009/05-MC-EnC  of  18  December  2009,  as  amended  by 
Decision  2010/02-MC-EnC  in  September  2010)  included  a  dynamic  clause  whereby  the 
Energy Community will implement delegated acts adopted by the Commission on the basis of 
Directive 2010/30/EU1. 

This dynamic procedure for adopting delegated regulations on energy efficiency implies that 
the  relevant  acts  must  be  put  on  the  agenda  of  the  next  meeting  of  the  Ministerial  Council 
following  their  adoption and notification by the  European  Commission.  At  that  meeting  the 
Ministerial Council has the opportunity to object to the application of a delegated act to the 
Contracting Parties of the Energy Community. lf, at that meeting, the Ministerial Council has 
not objected to the delegated act, it will become binding on the Contracting Parties, subject to 
possible adaptation. 

The  European  Union  must  approve  the  Energy  Community’s  adoption  of  the  delegated 
labelling  of  household  dishwashers,  washing  machines, 
regulations  on 
refrigerating appliances, televisions and household refrigerating appliances2.  

the  energy 

2.3. 

POLICY DOCUMENTS 

2.3.1.  Adoption of the Energy Community Work Programme for 2012-2013 

The European Union must approve the Energy Community Work Programme for 2012-2013, 
as proposed by the Secretariat and endorsed by the Permanent High Level Group (PHLG) on 
29 June 2011. 

1 

2 

Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication 
by  labelling  and  standard  product  information  of  the  consumption  of  energy  and  other  resources  by 
energy-related products 
It concerns the four Commission Delegated Regulations adopted on 28 September 2010, supplementing 
Directive 2010/30/EU of the European Parliament and of the Council with regard to energy labelling of 
household  dishwashers,  household  washing  machines,  televisions  and  household  refrigerating 
machines. 

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This  Work  Programme  represents  the  continuation  of  the  work  carried  out  in  the  past  and 
covers all areas of activity. It places particular emphasis on the energy regulators’ work in the 
field  of  implementation  and  cooperation.  It  also  takes  into  consideration  future  work  on 
completing the internal market for electricity and gas (by implementing the ‘third package’) 
and on statistics and security of supply through the planned implementation of the oil stocks 
Directive and the Regulation on Security of Gas Supply. 

2.3.2.  Adoption of an Implementation Plan for Gas Infrastructure Development in the 

Energy Community 

The  Energy  Community  Gas  Ring  concept  has  been  extensively  discussed  in  the  Energy 
Community institutions, at the highest level (Ministerial Debate, Skopje September 2010) and 
in the context of a meeting held in June 2010 between the PHLG and the Energy Community 
Regulatory Board (ECRB). The ECRB is moreover working on the regulatory instruments for 
promoting the Gas Ring.  

The European Commission has made a political decision to prioritise the development of the 
Energy Community Gas Ring3. 

The  development  of  a  Gas  Ring  would  help  the  Contracting  Parties  achieve  two  key 
objectives. The first is to increase the share of gas in their respective power generation mix 
and  thus  satisfy  an  increasing  power  demand.  The  second  is  to  comply  with  their 
environmental obligations within the Energy Community framework.  

A large-scale gas pipeline infrastructure project like this one calls for extraordinary efforts in 
technical, financial and regulatory fields across the whole region. Last but not least, it requires 
strong political will and support. 

The European Union must call on the Ministerial Council to make a political commitment to 
advance  rapidly  on  the  Gas  Ring  concept,  in  line  with  the  ‘non  paper’  presented  by  the 
Commission at the meeting of the Permanent High Level Group in Vienna, on 29 June 2011.  

3. 

ARMENIA — ACCEPTANCE AS AN OBSERVER 

The Energy Community  Treaty  states that ‘upon a reasoned request of  a  neighbouring third 
country, the Ministerial Council may, by unanimity, accept that country as an Observer’ and 
‘Observers  may  attend  the  meetings  of  the  Ministerial  Council,  the  Permanent  High  Level 
Group, the Regulatory Board and the Fora, without participating in the discussions’ (Article 
96).  

In  May  2010,  Armenia  asked  to  become  an  observer.  In  July  2010,  it  sent  the  Secretariat  a 
detailed  justification  for  this  request,  referring  in  particular  to  security  of  supply  and 
diversification,  and  to  the  importance  of  international  cooperation.  Armenia  also  mentioned 
other initiatives in which it is playing an active part (Inogate, ENP, Eastern Partnership). 

The  Ministerial  Council  was  formally  informed  of  this  application  at  its  annual  meeting  on 
24 September, but took no decision. 

3

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL under Article 7 of 
Decision 2006/500/EC (Energy Community Treaty) 
http://ec.europa.eu/energy/gas_electricity/community/doc/20110310_report_en.pdf. 

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The European Union must agree that Armenia be accepted as an observer. 

4. 

OTHER DECISIONS 

4.1.  Work of Task Forces  

The  work  of  the  existing  tasks  forces  will  be  reviewed  at  the  meeting  of  the  Ministerial 
Council, which will take note of the reports on their activities and decide on their future work, 
as follows: 

-  Renewables  Task  Force.  Its  mandate  must  be  extended  by  one  year,  to  help  Contracting 
Parties  implement  Directive  2009/28  (on  the  basis  of  the  2010  Recommendation  from  the 
Ministerial Council and of a future binding decision). 

- Energy Efficiency Task Force. Its mandate must be extended by one year, to assist with the 
implementation of the relevant directives and delegated regulations. 

- Environment Task Force. An oral report is expected on what the Task Force has been doing 
since it was set up in May 2011 (no decision). 

- Regional Strategy Task Force. The Ministerial Council is expected to endorse the concept of 
a Task Force charged with preparing a Regional Strategy and Investment Plan. 

3.2.  Dispute settlement — Appointment of an Advisory Committee  

The Advisory Committee is an intermediate step before the Ministerial Council declares that a 
Party is in breach of its obligations. This Advisory Committee is provided for in Article 32 of 
Procedural Act nº 2008/01/MC-EnC, of 27 June 2008 on the Rules of Procedure for Dispute 
Settlement under the Treaty.  

The  members  appointed  in  2009  came  to  the  end  of  their  term  of  office  in  June  2011.  The 
Ministerial  Council  must  therefore  appoint  members  of  the  Advisory  Committee  for  a  new 
term of two years. 

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2011/0214 (NLE) 

Proposal for a 

COUNCIL DECISION 

on establishing the European Union position within the Ministerial Council of the 
Energy Community (Chişinău, 6 October 2011) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 218, paragraph 9 thereof, 

Having  regard  to  Council  Decision  2006/500/EC  of  29  May  2006  on  the  conclusion  by  the 
European  Community  of  the  Energy  Community  Treaty,  and  in  particular  Articles  4  and  5 
thereof, 

Having regard to the proposal from the European Commission, 

HAS DECIDED AS FOLLOWS:  

Sole Article 1 

In  view  of  the  meeting  of  the  Ministerial  Council  of  the  Energy  Community  to  be  held  in 
Chişinău on 6 October 2011, the position of the European Union regarding the issues falling 
under  the  scope  of  Article  218,  paragraph  9,  of  the  Treaty  is  set  out  in  the  Annex  to  this 
Decision. 

Done at Brussels, 

For the Council 
The President 

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ANNEX  
European Union position 

•  The  European  Union  approves  the  financial  discharge  of  the  Director  of  the  Energy 

Community Secretariat for 2010. 

•  The  European  Union  approves  the  Budget  for  2012-2013,  subject  to  approval  by  the 

budget authority of the corresponding appropriations for both years. 

•  The  European  Union  approves  the  amendments  to  Annex  IV  of  the  Energy  Community 

Treaty, concerning the contributions of the parties to the Energy Community Budget. 

•  The European Union approves the implementation by the Energy Community of Directive 
2009/72/EC,  Directive  2009/73/EC,  Regulation  (EC)  No  714/2009  and  Regulation  (EC) 
No 715/2009. 

•  The European Union approves amendments to the Energy Community Treaty, in line with 
Council  Decision  of  28  June  2011  authorising  the  Commission  to  negotiate  on  behalf  of 
the European Union amendments to the Energy Community Treaty. 

•  The  European  Union  approves  the  adoption  by  the  Energy  Community  of  the  2011 
Delegated  Regulations  on  the  energy  labelling  of  household  dishwashers,  washing 
machines, refrigerating appliances, televisions and household refrigerating appliances. 

•  The European Union approves the Energy Community Work Programme for 2012-2013. 

•  The  European  Union  approves 

the  Implementation  Plan  on  Gas  Infrastructure 

Development in the Energy Community 

•  The  European  Union  approves  the  acceptance  of  Armenia  as  an  observer  to  the  Energy 

Community. 

•  The European Union approves the setting up of a Regional Strategy Task Force. 

•  The European Union approves the appointment of the members of the Dispute Settlement 

Advisory Committee. 

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