Energy Community Steps Up Pressure in Gas Unbundling Dispute with Serbia

Energy Community Steps Up Pressure in Gas Unbundling Dispute with Serbia
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Πεμ, 24 Απριλίου 2014 - 13:15
The secretariat of the Energy Community, a Vienna-based international energy policy organization, said on Wednesday that it has submitted a reasoned request to the Energy Community Ministerial Council, seeking its decision on Serbia's failure to comply with gas unbundling rules.
The secretariat of the Energy Community, a Vienna-based international energy policy organization, said on Wednesday that it has submitted a reasoned request to the Energy Community Ministerial Council, seeking its decision on Serbia's failure to comply with gas unbundling rules.

The Ministerial Council could take a decision on Serbia’s breach of its obligations under the Energy Community Treaty on September 23 in Kiev, the Energy Community said in a statement.

The secretariat has repeatedly expressed concerns that Serbia’s two transmission system operators for natural gas, Srbijagas and Yugorosgas, do not comply with unbundling requirements of the Second Energy Package.

At its core, unbundling requires the effective separation of activities of energy transmission from production and supply interests and embodies thereby a cornerstone of the market opening process. The relevant implementation deadline under Directive 2003/55/EC expired on July 1, 2007.

In February, the secretariat sent a reasoned request to Serbia, under Article 90 of the Energy Community Treaty, requesting the country to rectify the identified issues of non-compliance within a time limit of two months.

Serbia has since failed to inform the secretariat within the established deadline of any steps to bring the situation in compliance with Energy Community law.

Due to the lack of an adequate response from the Serbian authorities and the extensive delay in the implementation of the respective requirements, the secretariat has submitted a reasoned request to the Ministerial Council.

The dispute settlement procedure does not provide for a judicial decision in the last instance. In cases of serious and persistent breaches of the Energy Community Treaty, certain of the rights deriving of the application of the Treaty to the party concerned may be suspended by the Ministerial Council.

The Energy Community was established by an international law treaty in October 2005. As of July 1, 2013, the parties to the treaty are the European Union and Albania, Bosnia and Herzegovina, Croatia, Kosovo, FYROM, Moldova, Montenegro, Serbia and Ukraine.


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