Serbia benefits millions of euros annually from Kosovo energy

Kosovo loses millions of euros a year due to failure to implement the energy agreement signed in 2013 between representatives of Pristina and Belgrade, with the ease of the European Union.

The same agreement was later confirmed by both Kosovo and Serbian prime ministers in August 2015, when they had renegotiated and agreed to its implementation.

As a result of the failure to implement the agreement, Zana Bajrami-Rama, official at the Kosovo Transmission System Operator and Electricity Market (KOSTT), says Kosovo loses about 10m euros annually.

“Operator of Serbia's System (“Electrice Mreza Srbije” - The EMS continues to collect capacity access to Kosovo border lines with neighbouring states”.

“Only between January and October of this year, estimated that Serbian operator The EMS, has benefited from the aloche of Kosovo's border lines capacities with neighbouring states and co-operations, over 9.5m euros. Each year, there are benefits from revenues from capacity aloche”, Rama tells Radio Free Europe.

Meanwhile, Minister of Economic Development Valdrin Luka, in a conversation for Radio Free Europe, says the losses from Serbia's blockade amounted to over 17m euros, including losses from the dysfunction of the Kosovo Interconction Line é Albania, which is ready but has not been able to activate because of the blockade that Serbia has caused.

The “is from 10m to 15m euros annually, including the transmission with Albania, which has not been implemented for that very reason. So, in general there are over 17m euros, which Serbia is inexorating in the name of Kosovo since Kosovo's declaration of independence in 2018<18x1>, Luqa says.

Minister Luka adds that the Government of Kosovo will seek compensation for these means during future negotiations that will be held between Kosovo and Serbia, with the ease of the European Union in Brussels.

On the contrary, he says, this problem will be presented in Arbitrages.

Until the contract is signed by the Serbian side and Kosovo, then it is binding to respect it, so Serbia has a duty and must compensate for these losses in any form, whether through arbitration, or whether through negotiations”, Luka estimates.

Even in the 2013 agreement, it is said that if it is not possible to reach a common solution within six months, both sides agree to present these claims before international arbitration.

By contrast, during Kosovo negotiations, Serbia is scheduled to start operating as two independent regulatory areas in line with the requirements of the European Power Transmission System Operators.

Also signed was the Kosovo Energy System Locking Agreement in the Sincroan Zone of Continental Europe.

Under this agreement, COSTT's independence is reportedly allowed after the creation of a new company, according to Kosovo's legal framework, which will supply electricity to consumers in four Serb majority northern municipalities, and will be able to buy and sell energy on the open market.

But this company has not yet been registered and licensed in the competent Kosovo institutions, says Zana Bajrami- Rama, what is unable to implement the agreement.

“Regardless of what COSTT has met all technical and operational preconditions in accordance with the requirements of the European Network of Electric Energy Transition System Operators (ENTSO-E) to function as a regulatory zone under the key arrangement, this agreement has not yet entered into force due to Serbia's continued instructions in implementing obligations stemming from the Kosovo Energy Agreement and Serbia<2>, Bajrami Rama points out.

Otherwise, the energy issue is currentised following the Court of Appeals' decision, with which the billing of energy spent by consumers of northern municipalities, consumers of other Kosovo regions, is required to cease.

According to official data, citizens of these parts reportedly spent 8m euros annually, while consumers of other parts of Kosovo have paid that value.

Even for this problem, the Government of Kosovo, claims that in future negotiations with Serbia's Government in Brussels, it will seek compensation of materials from spent electricity bills.