Treaty establishing the Energy Community

EU requirements and BiH international obligations in the energy sector are largely contained in the provisions of the Energy Community (Decision on Ratification of theTreaty establishing the Energy Community,Official Gazette of Bosnia and Herzegovina - International Agreements, No. 9/06).

Bosnia and Herzegovina has started participation in the regional electricity market by its engagement in  South East Europe Energy Market Process (the Athens Process), respectively by signing two Memoranda of Understanding on the Regional Energy Market in South East Europe and its integration into the Internal Market in 2002 - 2003. After several years of preparation, the first multilateral and legally binding international treaty in the area of the South East Europe was signed on 25 October 2005 in Athens - the Treaty establishing the Energy Community.

The Energy Community Treaty entered into force on 1 July 2006. It enables the creation of the world largest internal market for electricity and gas, in which the European Union, as one Contracting Party and the following eight Contracting Parties: Albania, Bosnia and Herzegovina, Montenegro, Kosovo, Macedonia, Moldova, Serbia and Ukraine, effectively participates.

In accordance with the expressed interest, the work of the Energy Community bodies includes Austria, Bulgaria, Czech Republic, France, Finland, Greece, Croatia, Italy, Cyprus, Latvia, Hungary, the Netherlands, Germany, Poland, Romania, Slovakia, Slovenia, Sweden and United Kingdom. These 19 so-called the participating countries from the European Union are directly involved in the work of the Energy Community bodies, and their positions in the vote are expressed by the European Commission. Armenia, Georgia, Norway and Turkey have the observer status in the Energy Community bodies.

The basic objectives of the Energy Community are to create a stable and single regulatory framework and market that provides a reliable energy supply and may attract investments in the electricity and natural gas sectors. In addition, there are the development of alternative gas supply routes and improvement of the environmental situation, with energy efficiency and renewable energy sources.

By concluding this Treaty, the regional Contracting Parties are obliged to establish a common electricity and gas market that will function according to the EU energy market standards to be integrated. This can be achieved by gradually transposition of the EU acquis, namely through the implementation of relevant EU directives and regulations in the areas of electricity, gas, environment protection, competition, renewable energy resources, energy efficiency, oil and statistics.

The Treaty which was concluded for a period of 10 years was extended for another 10 years by unanimous decision of the Ministerial Council of the Energy Community on 24 October 2013.

On behalf of BiH, the Ministry of Foreign Trade and Economic Relations of BiH is responsible for the fulfillment of the obligations assumed by the signing of the Treaty establishing the Energy Community. It also, together with the relevant entity ministries, cooperates with the Energy Community bodies.

More information about the Energy Community can be found here.