The Energy Agency was established by the Energy Law (Official Gazette 84/04, 24 July 2004). The Agency is a legal entity with all the rights, liabilities and responsibilities stipulated by the Energy Law and other regulations.

The Agency was established as a regulatory body for performing the following tasks: enhancing and directing the development of the energy market in accordance with the principles of non-discrimination and effective competition, monitoring the implementation of regulations and energy systems operating codes, harmonizing the activities of energy entities in providing regular supply of energy and services to customers and ensuring their protection and equal treatment.

The Agency is functionally independent from any government bodies, all energy entities and users of their products and services, as well as other legal and physical persons.

The Council is the managing body of the Energy Agency.

The Agency was legally established on 16 June 2005, by registering at the Trade Court in Belgrade.