The treaty is to take effect at the start of 2006.
The parties to the treaty are the European Commission on one side and Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Kosovo (UNMIK), Macedonia, Romania, Serbia-Montenegro and Turkey on the other.
The treaty will ban tariff duties and quantity restrictions on electricity and natural gas imports and exports among the parties to the agreement.
The purpose of the agreement is also to enhance the provision of electricity and gas supplies, improve environmental protection and develop market competition. The countries concerned will have to implement the EU directives on the internal electricity and gas market as well as relevant EU environmental laws such as the directive on Large Combustion Plants (reducing emissions and improving efficiency standards).
Regarding the adoption of the European acquis communautaire in the sector of renewable power sources, Croatia is planning to increase the share of renewable power sources to 4.5 percent until 2010, Tomsic said.
He added that the EU would probably insist on a six percent share, which he said would be a topic of the accession negotiations.