Annual implementation report of the Energy Community announced

The Energy Community (“EC”) has recently publicized their Annual Implementation Report (the “Report”) which evaluates performance of the contracting parties in transposition and implementation of the Energy Community acquis into domestic legislation.

EC extends the European Union internal energy market to the neighboring (member) countries, with the principle goal to create a regulatory and market framework which is capable of attracting investments for a stable and continuous energy supply and to provide compliance with the EU regulatory framework in this area of law.

General remarks

The Report indicates that six out of eight member states have successfully transposed Third Energy Package into domestic legislation, while the level of implementation varies significantly depending on each country.

It was noted that Serbia and Montenegro are still leaders in implementation of the sustainability policies comprising energy efficiency, renewables, environment and climate matters, while the remaining members show promising improvement alike. The indicators observed allow for the identification of certain trends. Relatively low transparency ratings, a pressing need for improvement in institutional capacity, implementation of infrastructure, climate and greenhouse gas (GHG) monitoring stands out as the main deficiencies in all countries.

The Report also indicates that the latest members of the EC (Ukraine and Moldova) are closing up to the other contracting parties in all “implementation-related dimensions”.


In general, it is noted that Serbia is successful in transposition of the EC acquis; however, implementation is rather slow and insufficient, with the particular accent on the lack of unbundling of the transmission system operators, EMS (Elektromreža Srbije) in electricity and Yugorosgas Transport and Srbijagas in natural gas, which all led to a vast number of infringement cases. Serbia is also expected to facilitate the implementation of the signed agreements with Kosovo*.

Concerning particular areas examined, it was noted that the first priorities for Serbia in the forthcoming period are the transposition of the Energy Efficiency Directive (either through amending the Law on Efficient Use of Energy or through adoption of the new law) and full implementation of the Buildings Directive and adoption of the two delegated regulations on space heaters and water heaters.

With regards to the Large Combustion Plants and Industrial Emissions Directives, Serbia is encouraged to implement them in practice, but this must be accompanied with further alignment of the domestic laws and by-laws.

Serbia should also adopt a piece of legislation which should ensure transposition of the Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure immediately.


The Report was prepared based on the achievements and statistics collected in one year period and it is overall conclusion that although certain improvements may be detected in all the countries, there were no significant progresses compared to the previous Report year before.

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