Some companies in Kosovo have received offers for electricity up to three times higher than the current tariffs, and most have not yet managed to sign contracts with suppliers. However, from June 1, according to the decision of the Energy Regulatory Office (ERO), all large businesses will exit the regulated tariff scheme and enter the free market.
Despite continuous calls from business representatives, there will be no extension of the deadline for the liberalization of the energy market, confirms the Energy Regulatory Office (ERO).
According to the ERO's decision, from June 1, all large businesses will no longer be supplied with energy through regulated tariffs, but must find their own supplier in the free market. If they fail to do so, they automatically switch to the open market with unregulated prices, A2 reports.
This decision includes companies with over 50 employees or an annual turnover of over 10 million euros. There are over 1,000 such companies registered in Kosovo, consuming around 37% of the total energy consumed.
Currently, 21 energy supply companies are licensed in the market, while another is in the licensing process. Most of them are from Kosovo, but some are from the region.
The Energy Supply Operator, KESCO, which currently supplies most household and industrial consumers, is one of them.
ERO announced that most suppliers are still analyzing customer profiles and preparing their offers. The institution stressed that the decision remains in force and can only be contested through legal channels – a move that, on May 28, was warned by the Democratic Party of Kosovo (PDK).
Radio Free Europe/Radio Liberty has spoken to several businesses that have not yet signed contracts, due to the high prices offered by suppliers and the wait for the deadline to be extended.
Significant increase in costs for businesses
All economic entities representing businesses – including the Kosovo Chamber of Commerce, the American Chamber of Commerce in Kosovo, the Kosovo Business Alliance, and the Chamber of Commerce and Industry – have requested a one-year extension of the deadline.
They said that this period should be used to create conditions that would make the reform more acceptable to businesses. Otherwise, liberalization risks causing long-term damage, affecting production and reducing competitiveness towards companies in the region.
Bedri Kosumi, owner of the company "Pestova" in Vushtrri, which has 260 employees, says that KESCO has offered him a price of 264 euros per megawatt hour (MWh) – three times the current tariff.
According to him, last year the company paid 500 thousand euros for electricity, while with the new offer, the annual bill will exceed 1.5 million euros.
"This is unacceptable, they are forcing us to increase product prices, reduce production and, as a result, reduce the number of employees... it is a chain effect," said Kosumi.
From the "Frutex" company in Suhareka, owner Shaqir Palushi says that only KESCO and the VoltKos company have submitted bids.
For the month of June, KESCO's offer was over 60 thousand euros more than it paid in June last year.
Meanwhile, the offer of the other company, VoltKos, for July was 200 euros/MWh.
"In July last year, we paid 40,960 euros for energy; for the same amount, in July this year, with the new offer (of VoltKos), we have to pay over 102 thousand euros," Palushi told Radio Free Europe.
Neither KESCO nor VoltKos have confirmed to REL the prices offered to these companies.
For one megawatt of energy per hour, according to a report published by ERO, businesses pay around 140 euros during the day (high tariff) and around 69 euros at night (low tariff).
Yes, according to this regulator, the average price of energy for non-household consumers last year was 9.30 cents per kilowatt hour or 93.0 euros per MWh.
The silence of licensed companies
REL has contacted several of the companies licensed for supply, such as Infinit Power Solution, Etmt Energy, MCM Commodities, Kosovo Energy Corporation, KESCO, Future Energy Trading and Exchange Dynamics, GSA Energy, but most have not responded as to whether they are ready to supply businesses from June 1 and at what price.
Partial responses were provided by the company Enerco LLC.
Rinor Klaiqi from this company did not specifically indicate the price of one megawatt, but said that they have talked with several businesses although they have not concluded any commercial agreements.
"This is a new situation and most consumers are using the Supplier of Last Resort offer until they adapt to the new situation," he told REL.
According to Burim Ejupi from the Institute for Development Policy - INDEP, companies are not transparent in pricing and current offers do not match the reality of the stock market.
For comparison, the average price for one MWh on the HUPX exchange on May 28 was only 87.39 euros.
Last resort: Temporary solution
If a company fails to find a supplier, it automatically switches to the Supplier of Last Resort – currently the Kosovo Energy Corporation (KEK), which is selected through an open tender by ERO.
ERO says that as of June 1, businesses that have not chosen a commercial company will automatically switch to this supplier.
This supply cannot last more than 60 days and the prices are higher than the average market price.
If after this period a contract is not signed with a commercial company, the business risks being left without electricity supply.
Meanwhile, the Kosovo Energy Corporation did not respond to whether it is ready for this process and what the price of energy will be for large businesses.
ERO stands by its decision, saying it can only be challenged through legal channels.
The PDK has warned that it will request a temporary suspension of the decision in court until the conditions for the functioning of the free market are created.
Meanwhile, businesses remain in uncertainty and face difficult decisions, as the sudden increase in energy costs risks affecting production, prices, and employment.
The process of liberalizing the energy market in the European Union countries began in the late 1990s with the aim of increasing competition, efficiency, security and choice for consumers. In the Western Balkans, however, this process is still under development.
In Kosovo, the liberalization of the energy market is foreseen by the Law on Electricity adopted in 2017, but its implementation has been postponed due to various circumstances./ REL (A2 Televizion)
A2 CNN Livestream
MUND TE LEXONI GJITHASHTU
