This paper presents a methodology development and the results achieved in the process of establishing energy management system in the City of Kragujevac (Serbia) and in its public services. The paper is an overview of influential factors in the field of energy management, analyzing their impact on raising the energy efficiency of individual utility service and the city of Kragujevac, as a whole. The paper also presents the most interesting scientific and research projects realized in the cooperation of several actors which were coordinated by Regional Euro Energy Efficiency Center Kragujevac. The municipal companies together with the city administration are the direct beneficiaries of the results realized in the following areas: - Development of energy management in municipalities and the establishment of energy planning at the local level; - Improvement of municipal services by applying energy efficiency measures in public enterprises: “Energetika” (heating), “Čistoća” (communal waste management), and “Vodovod i kanalizacija” (water and waste water management).