Ministers hail largest energy internal market in the world – Energy Community Treaty - Main contents

The signatories of the Energy Community Treaty have today welcomed its coming into force on 1 July this year, at the Ministerial meeting of the Energy Community held in Luxembourg. The Energy Community Treaty creates the largest internal energy market in the world, bringing together the 25 Member States of the European Union with 9 close European states and territories into a single trading block.

Energy Commissioner Andris Piebalgs i who participated in the meeting welcomed this achievement. "The Energy Community is becoming a central plank of our external energy policy, providing a means to spread EU standards and a way for non-EU countries to access the EU market; the Treaty is a success for all concerned", he said.

The Ministers discussed reform plans for the energy sector in the region. Commissioner Piebalgs updated the Energy Community on recent developments within the EU. A common discussion on energy security focussed on short-term disruptions to the markets that may occur this coming winter and a system of security of supply correspondents was agreed as a means of monitoring the situation.

The Energy Community is based on the extension of European Union standards into neighbouring countries on the basis of reciprocity and allowing these countries to trade freely within the EU. There is the possibility to expand the Energy Community to countries such as Turkey, Norway, Ukraine, and Moldova.

With the ratification of participating states, the Treaty will enter into force on 1 July. From that date, participating states will have to allow free movement of electricity and gas across their borders in return for the assurance of minimum environmental and commercial standards. The Energy Community states will pursue common policies on demand management, energy efficiency and renewables, as well as having the possibility of establishing common external trade policies.

The Energy Community achieves several strategic goals for the European Union. It establishes direct connections to countries that themselves border on the substantial reserves of the Caspian Sea and the Middle East, so ensuring a single regulatory basis for the import of fuels from these countries. It extends environmental standards to neighbours of the EU. And it provides a solid basis for macro-economic reform by providing sustainable and secure energy supplies to business and consumers.

25 EU Member States, Croatia, Bosnia & Hercegovina, Serbia, Montenegro, former Yugoslav Republic of Macedonia, Albania, Bulgaria, Romania and UNMIK.