ENERGY COMMUNITY MINISTERIAL COUNCIL MEETING HELD IN

UNCLAS PODGORICA 000244 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ENRG PREL MW SUBJECT: ENERGY COMMUNITY MINISTERIAL COUNCIL MEETING HELD IN MONTENEGRO ¶1. (U) Introduction and summary: The "Energy Community" is a process that aims to extend the EU internal energy market to the Southeastern European region. The Treaty establishing the Energy Community was signed on October 25, 2005 in Athens, and entered into force on July 1, 2006. The Treaty extends major EU legislation in the field of energy, competition and environment to the territories of the Contracting Parties, and as such aims to provide a climate favorable to investments in the energy sector. The main goals are to create a stable regulatory market framework capable of attracting investment; to create a single regulatory space for trade; to enhance security of supply; to improve environmental situation and to develop electricity and gas market competition on a broader geographical scale. Background information on the Energy Community: http://www.energy-community.org/ ¶2. (U) The Second Athens Energy Community meeting was held in Montenegro (Becici) on June 29, 2007. Parties to the Treaty, and in attendance at the meeting, include the European Community, Albania, Bosnia and Herzegovina, Croatia, former Yugoslav Republic of Macedonia, Serbia, Montenegro and Kosovo (UNMIK); the U.S. was invited to attend the meeting as an observer. The meeting was co-chaired by EU Energy Commissioner Andris Piebalgs and the Montenegrin Minister of Economic Development Branimir Gvozdenovic. The meeting broke no new ground and produced little in the way of results. End summary. Second Meeting of The "Energy Community" -------------- ¶3. (U) The meeting assessed the results achieved since the Treaty entered into force a year ago, and set a path for future progress. Ministers reviewed the implementation of Treaty obligations by the Parties and noted both progress and the concrete future challenges for each of them. The firm commitment of the Parties towards market reforms in line with the requirements of the Treaty was reiterated. ¶4. (U) The issue of security of supply received particular focus. The ministers agreed that implementation of key European Acquis requirements in this regard is needed, and extended the scope of the Treaty to cover EU legislation on safeguarding the security of electricity and gas supply, as well as to access to natural gas transmission networks. Ministers also paid special attention to promoting investments in the region, a vital aspect in the development of strong sustainable, competitive, reliable and affordable domestic energy markets. Next Steps -------------- ¶5. (U) The Energy Community Ministerial has requested the Permanent High Level Group to draw up a list of priority infrastructure projects for the Contracting Parties using the criteria established in the European Unions Trans - European Networks - Energy (TEN - E) Program. The Ministerial Council welcomed the upcoming Athens Conference on investments, and noted that the next Ministerial Council meeting will take place in Belgrade in November 2007. BARNES