Proposal for a COUNCIL DECISION on establishing the European Union position within the Ministerial Council of the Energy Community (Budva, 18th October 2012)
Date: 2012-09-19
Institutions: European Commission
Subjects: Moldova, Ukraine, electricity supply, energy consumption, gas supply, renewable energy

EUROPEAN COMMISSION 

Brussels, 19.9.2012  
COM(2012) 532 final 

2012/0254 (NLE) 

Proposal for a 

COUNCIL DECISION 

on establishing the European Union position within the Ministerial Council of the 
Energy Community (Budva, 18th October 2012) 

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EXPLANATORY MEMORANDUM 

CONTEXT OF THE PROPOSAL 

1. 
The 10th Ministerial Council of the Energy Community will take place on 18th October 2012 
in Budva (Montenegro). 

The position of the European Union on the decisions that are on the agenda for this meeting 
needs to be established pursuant to 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 (hereafter the 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  or  which  require  taking  an  EU  position.  The  Commission 
considers that other items on the agenda of the Ministerial Council do not require guidance for 
statement by the European Union, as referred to in the Working methods with respect to the 
preparation  of  meetings  of  the  Energy  Community  Ministerial  Council  agreed  between  the 
services of the Commission and the Council (14623/07). 

2. 

DRAFT ANNOTATED AGENDA 

2.1. 

“A points” (No discussion) 

The Commission shall approve the Director’s financial discharge for 2011 on the basis of the 
Audit Report of 31st December 2011, the Budget Committee Report on Audit for 2011 and the 
Director’s Report on Execution of the 2011 Budget. 

The Commission shall approve the Annual Report on the activities of the Energy Community 
to  the  European  Parliament  and  to  the  Parliaments  of  the  Adhering  Parties  and  of  the 
Participants, foreseen in Article 52 of the Treaty. 

The Commission shall take note of the other reports presented under this Agenda item. 

2. 2. 

Implementation of the Treaty 

The  Commission  shall  take  note  on  the  Secretariat’s  Report  on  the  implementation  of  the 
Treaty,  which  includes  a  first  assessment  of  Moldova  and  Ukraine,  as  newest  Contracting 
Parties. 

The Commission will also take note of the Report on dispute settlement. It will take note of 
the  progress  achieved  on  the  open  cases  and  will  further  support  the  Secretariat's  efforts  in 
view of finding negotiated solutions. 

The  Commission  shall  moreover  propose  the  inclusion  of  the  following  wording  in  the 
Ministerial  Council  conclusions:  "The  Ministerial  Council  took  note  that  Moldova  and 
Ukraine, which joined the Energy Community in 2010 and 2011, may need longer than the 
deadline of 1st January 2016 to implement Article 9 of Directive 2009/73/EC1" 

1 

Directive  2009/73/EC  of  the  European  Parliament  and  of  the  Council  of  13  July  2009  concerning 
common rules for the internal market in natural gas and repealing Directive 2003/55/EC 

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2.3. 

Statistics 

The  Commission  shall  approve  the  draft  Ministerial  Council  Decision  concerning  the 
implementation  of  the  rules  of  energy  statistics  in  the  Energy  Community,  by  which  the 
Contracting Parties agree to implement, not later than 31st December 2013, Regulation (EC) 
No  1099/20082  on  energy  statistics  and  Directive  2008/92/EC3concerning  a  Community 
procedure to improve the transparency of gas and electricity prices charged to industrial end-
users. 

This draft Ministerial Council Decision is based on Article 100(ii) of the Treaty and does not 
include any specific adaptation for the Contracting Parties. A formal Commission’s proposal 
under  Article  79  of  the  Treaty  was  therefore  not  deemed  necessary.  This  decision  requires 
unanimity. Should the unanimity not be reached on the proposed deadline of 31st December 
2013,  the  Commission  could  accept  to  delay  the  implementation  deadline  to  31st  December 
2015 at the latest. 

Considering that sound, reliable, comparable and consistent energy statistics are essential for 
monitoring the effectiveness of energy policies, the adoption of these basic EU rules should 
not  be  delayed  unnecessarily,  especially  in  view  of  the  expected  application  of  the 
cooperation  mechanisms  on  renewable  energy  between  EU  Member  States  and  Contracting 
Parties. 

2.4. 

Oil stocks 

The Commission shall approve the draft Ministerial Council Decision on the implementation 
of  Directive  2009/119/EC4  imposing  an  obligation  on  Member  States  to  maintain  minimum 
stocks  of  crude  oil  and/or  petroleum  products,  by  which  Contracting  Parties  commit  to 
implement this Directive not later than 1st January 2020. 

This draft Ministerial Council Decision is based on Article 100(ii) of the Treaty and does not 
include any specific adaptation for the Contracting Parties. A formal Commission’s proposal 
under  Article  79  of  the  Treaty  was  therefore  not  deemed  necessary.  This  decision  requires 
unanimity. 
Should  the  unanimity  not  be  reached  on  the  proposed  deadline  of  1st  January  2020,  the 
Commission  could  accept  to  delay  the  implementation  deadline  to  1st  January  2023  at  the 
latest. In case none of the two options reach the unanimous agreement, the Commission could 
accept  to  postpone  the  formal  adoption  of  the  draft  Ministerial  Council  Decision  while 
proposing  the  inclusion  of  a  political  statement  in  the  Ministerial  Council  conclusions 
encouraging  Contracting  Parties  to  take  the  necessary  steps  for  building  the  necessary  oil 
stocks  reserves  and  inviting  the  Energy  Community  Secretariat  to  continue  its  support  to 
Contracting Parties in this area.  

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Regulation (EC) No 1099/2008 of the European Parliament and of the Council of 22 October 2008 on 
energy statistics 
Directive 2008/92/EC of the European Parliament and of the Council of 22 October 2008 concerning a 
Community  procedure  to  improve  the  transparency  of  gas  and  electricity  prices  charged  to  industrial 
end-users (recast) 
Council  Directive  2009/119/EC  of  14  September  2009  imposing  an  obligation  on  Member  States  to 
maintain minimum stocks of crude oil and/or petroleum products 

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2.5. 

Renewable Energy Sources 

The Commission shall approve the draft Ministerial Council Decision on the implementation 
of Directive 2009/28/EC5, upon which Contracting Parties commit to implement the Directive 
by 1st January 2014. 

The adaptations contained in the Ministerial Council Decision, under Article 24 of the Treaty, 
are largely in line with those proposed in the Commission Decision of 19th March 2012. Some 
amendments were introduced following the discussions at the 25th meeting of the Permanent 
High Level Group, as follows: 

– 

– 

Reporting deadlines are adapted in line with the general implementation deadline. 

Article  16  (“Review  based  on  the  experience”)  has  been  amended  to  give  the 
possibility  of  drawing  consequences  from  progress  in  compliance  with  the 
requirements of EUROSTAT methodology for energy statistics. 

No  agreement  was  reached  at  the  meeting  of  the  Permanent  High  Level  Group  on  the 
Contracting Parties targets for the share of energy from renewable sources in their gross final 
energy  consumption  and  on  the  share  of  energy  from  renewable  sources  in  all  forms  of 
transport in 2020, which will need to be agreed at the meeting of the 10th Ministerial Council. 

The Commission can agree on an overall correction of the targets for the share of energy from 
renewable  sources  taking  into  account  a  shorter  period  of  implementation  of  the  Directive. 
Such correction should take into account the non-linear nature of the EU's trajectory for target 
fulfilment. 

The  Commission  shall  also  approve  amendments  to  the  Treaty,  in  line  with  the  Council 
Decision of 28 June 2011 to authorise the Commission to negotiate on behalf of the European 
Union amendments to the Energy Community Treaty.6 

This decision requires unanimity. 

2.6. 

Energy Strategy 

The Commission shall approve the Energy Strategy of the Energy Community, which results 
from the work of the Energy Strategy Task Force and takes into account comments made by 
the Contracting Parties and by the Commission on behalf of the European Union. 

The  Commission  shall  approve  the  extension  of  the  mandate  of  the  Energy  Strategy  Task 
Force till June 2013. The Energy Strategy Task Force should be tasked with the screening and 
identification of Projects of Energy Community interest and with the identification of possible 
policy  measures  aiming  at  fostering  the  development  of  the  future  projects  of  Energy 
Community interest. 

The Commission shall steer a debate on energy security, which is one of the main objectives 
of the Energy Community, and requires that all parties to the Treaty coordinate action. It will 
highlight  the  importance  of  the  internal  market  rules  that  guarantee  cross  border  flows  of 
electricity and gas within Europe, of establishing strategic oil stocks and promoting renewable 

5 

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Directive  2009/28/EC  of  the  European  Parliament  and  of  the  Council  of  23  April  2009  on  the 
promotion  of  the  use  of  energy  from  renewable  sources  and  amending  and  subsequently  repealing 
Directives 2001/77/EC and 2003/30/EC 
As a reminder,11242/11 REV 1 states : "The Commission shall ensure that amendments to be agreed on 
behalf  of  the  European  Union  refer  to  the  obligation  of  Contracting  Parties  to  adopt  Directive 
2009/28/EC  on  the  promotion  of  the  use  of  energy  from  renewable  sources  and  amending  and 
subsequently repealing Directives 2001/77/EC and 2003/30/EC". 

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sources of energy and increased energy efficiency. It will encourage the Contracting Parties to 
participate actively in Security of Supply Group7. 

2.7.  Appointment of a Director of the Energy Community Secretariat 

The Commission shall approve the Procedural Act of the Ministerial Council appointing Mr. 
Janez Kopač as Director of the Secretariat for a fixed renewable term of three years. 

Based on the Commission proposal the Ministerial Council shall decide on the appointment of 
the Director on a simple majority. 

7 

Procedural Act 2008/02/MC-EnC of the Ministerial Council of the Energy Community of 11 December 
2008, on the Establishment of a Security of Supply Coordination Group 

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2012/0254 (NLE) 

Proposal for a 

COUNCIL DECISION 

on establishing the European Union position within the Ministerial Council of the 
Energy Community (Budva, 18th October 2012) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 194 and 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,1  and  in  particular  Articles  4  and  5 
thereof, 

Having regard to the proposal from the European Commission, 

HAS DECIDED AS FOLLOWS:  

Sole Article 
In view of the 10th meeting of the Ministerial Council of the Energy Community to be held in 
Budva on 18th October 2012, the position of the European Union regarding the issues falling 
under the scope of Article 218, paragraph 9, of the Treaty on the Functioning of the European 
Union is set out in the Annex to this Decision. 

Done at Brussels,  

For the Council 
The President 

1 

OJ L 198, 20.7.2006, p. 15. 

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ANNEX  

European Union position 

The European Union approves the financial discharge of the Director of the Energy 
Community Secretariat for 2011. 

The  European  Union  approves  the  2011  Annual  Report  on  the  activities  of  the 
Energy  Community  to  the  Parliaments,  foreseen  in  Article  52  of  the  Energy 
Community Treaty. 

The  European  Union  approves  the  implementation  by  the  Energy  Community  of 
Regulation  (EC)  No  1099/2008,  on  energy  statistics,  and  Directive  2008/92/EC, 
concerning  a  Community  procedure  to  improve  the  transparency  of  gas  and 
electricity prices charged to industrial end-users, not later than 31st December 2015. 

The European Union approves the implementation of Directive 2009/119/EC on the 
obligation  to  maintain minimum  stocks of crude oil and/or petroleum products,  not 
later than 1st January 2023. 

The  European  Union  approves  the  implementation  by  the  Energy  Community  of 
Directive  2009/28/EC,  on  the  promotion  of  renewables,  not  later  than  1st  January 
2014, whereby Contracting Parties commit to targets of a level of effort similar to the 
one applicable to EU Member States, taking into account also the shorter period of 
implementation allowed to Contracting Parties. 

The European Union approves amendments to Article 20 of 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 Energy Strategy of the Energy Community. 

The European Union approves the extension of the mandate of the Energy Strategy 
Task Force until June 2013. 

The  European  Union  approves  the  appointment  of  Mr.  Janez  Kopač  as  Director  of 
the Secretariat for a fixed renewable term of three years. 

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