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Parties to the Energy Community in South-East Europe, including Moldova and Ukraine, have worked intensively to adapt and upgrade their legal frameworks in the past year, according to the annual implementation report of the Energy Community.

As contracting parties to the Energy Community, Moldova and Ukraine are included in the Energy Community’s 2012 annual report on the implementation, between mid-2011 and mid-2012, of the acquis under the Energy Community Treaty (EnCT).
 
“The contracting parties have committed themselves to the implementation of selected parts of the acquis communautaire on electricity, gas, renewable energy, energy efficiency, competition, environment and security of supply,” explains the introduction to the report.
 
One section of the report, on network energy, covers electricity, gas and oil. Another section, on horizontal policies, covers competition, renewable energy, energy efficiency, environment and social issues. Each section reports on progress country by country.
 
“During the reporting period, the contracting parties, assisted by the Secretariat, have worked intensively to adapt and upgrade their legal frameworks. The present report bears testimony to this and assesses the state of compliance in each sector covered by the Treaty in a true and fair view. It also identifies remaining gaps and makes proposals for priorities in each of the contracting parties,” explains the preface to the report.
 
“The patterns of gas trades and flows still follow a simple East-West direction and pipelines remain fully foreclosed. New infrastructure will be necessary to diversify supply and allow for the establishment of a market. Most importantly, however, the strife for electricity autarchy and excessive interpretation of public services need to be reconsidered by all contracting parties. New models and approaches need to be implemented on national level first; the current draft for a new Electricity Law in Ukraine and its allocation funds represents an interesting example in that respect. Finally, the vulnerability of regional electricity markets became apparent during the cold spell in February 2012 when all exports were temporarily halted and secure supply was immediately endangered,” says the opening section of the progress report.
 
The Energy Community entered into force in 2006, and aims to extend the EU’s internal energy market to South East Europe and beyond, and enhance the overall security of supply. Parties have committed themselves to liberalise their energy markets and implement key EU legal acts in the area of electricity, gas, environment and renewable energy. Among the Eastern Partners, Moldova (since May 2010) and Ukraine (as of February 2011) are both full members of the Energy Community. Armenia and Georgia have observer status. (EU Neighbourhood Info Centre)