Growth in reducing energy network losses

Despite the modest success marked in recent years, the level of net losses continues to be markedly higher than the rates allowed by the Energy Regulatory Office, ZRE.

Based on data provided by sources within the energy sector, net losses that also occur because of electricity misuse are about 24 percent.

According to ZRE, which is the authority that determines annual energy tariffs, losses in the network managed by KED should not exceed the value of 16.9 per cent.

According to these reports, net losses in 2013 reached over 31 percent to improve by less than 3 percent a year later.

And in 2015, losses were at over 26 percent.

It is estimated that citizens who illegally lock on the power grid benefit from weak rule of law, because even in cases where illegal keys are identified, they cannot be interrupted until the outcome of judicial processes.

At times, judicial processes last years until a decision is made. The most problematic districts in Kosovo are considered to be Peja, Pristina, and Gjakova, where net losses reach up to 30 per cent.

However, because of political circumstances, in the Serb-run northern part, energy spent is not at all billed.

Because of the way ZRE's tariff price is done, net losses also affect the pocket of regular electricity consumers.

ZRREE also considers the expenses and investments made by the operatives involved in the energy sector, such as licensed KEDS, KESCO, KEK, COST, as well as ZRE's own balance, which are periodically analysed. In these conditions, one of these licensed companies, KEDS, which manages the power grid, loses about 10m euros annually due to net losses. Consequently, these costs are eventually taken into account by ZRE when annual tariffs are set.