This is what new tariffs cost Kosovars

New energy tariffs charge the cost citizens must pay for spending electricity.

So said today on the occasion of presenting regulatory parameters from the ZRRE before the Economic Development Commission, with which final consumer tariffs are assigned.

The head of the Department of Tarifa and Chemime at ZRE, Ymer Feyzullahu, during the presentation of new tariffs, said they have come to the conclusion that the cost must be 7.6 percent for energy.

He stressed that the whole process lasts 120 days, while it would have had to be completed on March 31st of this year, but that could not happen because the board had no quorum.

“Costo of debt based on our estimates that we have received is about 6.5 percent. Also, the market risk threat has been 4.5, which KEDS has demanded that their market risk threat be around 12 percent. I believe you are aware that this happened even in 2012, when the privatisation of KED was made. It is also now required that the cost of real capital be 13.6 percent, or nominal, 15.5 percent. On the basis of our professional assessments, we have come to the conclusion that the cost, or average, is 7.6 percent”, he said.

While Independent Group MP Dardan Sejdiu has expressed his concerns over the proposed parameters' proposals, saying there is no economic reason to walk beyond the proposed numbers, as he said, the cost of money value in the market is cheaper than KEDS requires.

According to him, the cost of debt, which Z The RRE has accepted KEDS as a proposal, it needs to be revised, since for long-term loans, annual interest does not exceed 4.5, which according to Sejdiu makes the ZERE proposal very liberal, reaching up to 6.5.
He said such a thing would have a direct impact on the price KED would tarifi and if Z. The RRE approves of this, then there must be research into what's happening.
As a recommendation, you refer to the price of money on the market, because money in the market is cheaper than you accepted. With 6.5 percent today, each in Kosovo, not a profitable corporation with parameters that you've submitted. If I as an MP am able to argue here that the cost of money in the market is cheaper than KED is asking for, and you approve that, then anyway, we should also seek an investigation to understand exactly why these things are happening. So why is a private operator beyond what is given on the market more expensive? This is a recommendation of mine and I suggested you take it seriously, because at the end of the day we represent citizens who pay these bills, which you are distributing in 12 months at the most expensive price of”, he said.

While MP Dardan Moliqaj has accused the Energy Regulatory Office of regulatory parameters (ZRRE) of working in favour of KEDS, ignoring citizens' interest.

He has expressed himself against the direct electricity fee, which, according to him, charges the cost of family economies at a 30 percent level, with only the result. KEDS, until it added that the ZRR has not brought before the commission the report on the benefits of Kosovo's economy, a move that had a direct impact on the country's economy has been avoided.

I have the impression that the ZERE in general has served the private company, in this case KED rather than the interests of citizens. I find it much easier to understand ZERE policy as if KEDS was a public company. It would also be much easier if millions of euros of net profit were not discussed. Your policies have been harmful and heavy on the family economy in Kosovo, while a company has won a lot. I didn't see today, at least from what you brought in writing, that you made a report, how you pledged to do it, to show us what Kosovo's economy has gained, and what has been the result of those";x1> tariffs, Moliqaj said.
An immediate reaction has been to the director of the ZERE Board, Arsim Yanova, who said they are committed to protecting the citizens' interests, but also to the operator.

I personally don't agree with that address that we tried to protect the operator only and not the citizen. It's a fact that the tariffs changed last year, tarif schemes. It was made after a long process of what decision has been made. The fact is that if KED has taken advantage of it, now in the 5-year assessment process, those tools that if we have given more now we get. We take 15 percent interest. If we don't appreciate it well, it's spent more than we've given it to the operator, we have to get it back next year. That's how the fee system works, he explains.
MP Moliqaj has responded to Janova's statements, saying more energy has been paid by citizens.

“honoured board member, I had suggested that, according to my view, be more correct. I didn't do subjective points here. That's not what I'm saying, what he's saying. It's paid more for the same electricity in most euros for the fees you've set. It's not like I'm saying it or anyone else. We'll talk, but it's paid. Second, the company had more profits. That's right and you're in the middle of it”, he stressed.
While MP Memli Krasniqi has supported the current electricity fee.

Summer and winter productions don't really exist in electricity consumption either. It's much smaller than 10 years ago. Ten years ago, it has been spent much less summer energy than it is now spent, since we have not had climates in offices and homes, and today there is much more, and consumption is more or less similar. At least I'm against changing fees between day and night. It should be the same”, he said.
MP from Alternative Mimoza Kusari - Lila has sought to know the difference in performance efficiency before and after privatisation. It has also sought to clarify the term political losses, and the technical limit, clarifying they are commercial losses.
On the other hand, Petit Pepaj of the ZRER said a loss that could not be addressed must be controlled by the state.