10 minutes agoEU Energy Institution Criticises Agreement on thermal power plant, New Kosovo
Periskopi(8 years ago)
(8 years ago)The Energy Community Secretariat today has criticised the agreement between the Government of Kosovo and “Contour Global” for building the new thermal power plant and the deal related to the purchase of energy between these two sides, saying it constitutes state aid, which is contrary to energy regulations [...]
The Energy Community Secretariat today has criticised the agreement between the Government of Kosovo and “Contour Global” for building the new thermal power plant and the deal related to the purchase of energy between these two sides, saying it constitutes state aid, which is contrary to the European Union's energy regulations (BE).
This Vienna-based institution has said that additional “elements potentially critical to the group of contracts concluded in December 2017 include tax evasion and customs duties, state guarantees and land rent transfer under the market price”.
The secretariat had shared concerns with Government through a letter sent on March 22nd of this year. Concerns relate to the contracting framework for construction of the thermal power plant, and mostly to the energy purchase agreement signed in December 2017.
Under the EU Energy Law, state aid is prohibited in order to prevent the common energy market from being distorted through advantages provided by public resources in certain companies.
The secretariat estimates that the new “Kosovo energy purchase agreement envisions risks, primarily related to the operation of a thermal power plant entirely in favour of Contour Global. Contour Global, on the other hand, is protected from commercial risks such as production, market risk, regulatory and tax risks of system fees and other tariffs, credit risk, etc., said on the official page of the committee.
Generous conditions offered through the energy purchase agreement could not have been achieved in market conditions. Thus, while “Contour Global” enjoys guaranteed and safe profits, risks are faced by the Government of Kosovo. Secretariat is also concerned that contractual agreements will further reduce Kosovo's capacities for participation in the regional market, including the planned market union with Albania
The Energy Committee is an international organisation that brings together EU states and its neighbours to create an integrated Pan-European energy market.
