New Kosovo takes Kosovo to banking, doubles energy price

Balkan Green Foundation (BGF) and the Institute for Development Policy (INDEP) through an analysis have raised the alarm for the consequences it will have for Kosovo's economy and environment implementation of the New Kosovo project and have called for an agreement with Contour Global to end. According to this analysis, the price of energy will double [...]
Balkan Green Foundation (BGF) and the Institute for Development Policy (INDEP) through an analysis have raised the alarm for the consequences it will have for Kosovo's economy and environment implementation of the New Kosovo project and have called for an agreement with Contour Global to end.
According to this analysis, the price of energy will double and will send Kosovo to bachronim.
Total analysis:
Balkan Green Foundation (BGF) and the Institute for Development Policy (INDEP) handles the Re Kosova Kosova Agreement for Energy Purchase Agreement. The agreement signed by the Government of Kosovo with Contour Global predicts that the Republic of Kosovo will pay the company all expenses, but also loan installments, interest, profit, and profit tax for 20 years.
New Kosovo thermal power plant has a guaranteed price of $80 /MWh.
To secure the sale of the energy produced by Kosova and New Kosovo, the Government of Kosovo has founded the Kosovo New Energy Company/New Kosovo Electricy Company (NKEC), which will serve as mediator between Contour Global and the rest of the energy market in Kosovo.
NKEC is forced to buy 100% of the thermal power plant's production capacity -- New Kosovo -- which will produce 3,370,000 MWh a year even if the market does not demand it. That energy NKEC will sell KEDS or anyone else at cheaper prices than cost, the average local and regional price, which is $50-60. /MWh.
With New Kosovo, the final consumer price (imviser) turns out to be $115 /MWh.
That's because:
New Kosovo produces $80 at the price /MWh
COMM STT conveys at $3 /MWh
KEDS/ KESCO distributes at $32 /MWh
$80 /MWh + 3 $ /MWh + 32 /MWh = 115 /MWh
This price is approximately 50% more expensive than the current price of $60/MWh. The Kosovo government will be forced to artificially lower the price to keep consumers satisfied. This is achieved by subsidising the real price difference at the current price: 115 $ /MWh $60 /MWh = $ 55/MWh.
How much does this subvention cost us if the New Kosovo TC lives? When we multiply the annual production of energy from TC (C) New Kosovo (3,370,000 MWh) by difference (55 $ /MWh) that the Government of Kosovo must subvention via NKEC, turns out that Kosovo citizens will have to pay UTF185 million a year, or $3.7 billion for 20 years. The money for subsidisation will come from Kosovo's budget and the tariffs raised for electricity, so that the new public company NKEC will respect this contract for 20 years. Subvention from Kosovo's budget of $3.7 billion for 20 years means less investment in infrastructure, security, economic development, education and health.
New company established The NKEC will carry out illegal activities to damage competition, market isolation and expensive energy prices for consumers to benefit private investor. As such, its establishment constitutes violations of Law No. 03/L-087 for Public Enterprises and Sublaw acts that speak of the economic reasonableness of establishing public enterprises.
With the establishment of the new NKEC company, the Kosovo government is creating deliberate and unnecessary spending of the project. The government is doing budget abuse and salaries of 5 members of the NKEC Board, which was named on the date 21.05.2018. In addition, political influences are being openly involved in the appointment of NKEC executive chief. British experts and the Government of Kosovo have given different assessments on the most successful candidate, which shows an open tendency to influence the outcome politically. (Refer links for more information on assessments from both sides:
Balkan Green Foundation (BGF) and the Institute for Development Policy (INDEP) require immediate withdrawal from the contract for construction of the New Kosovo thermal power plant. This project will bankrupt Kosovo economically, enable liberalisation and integration of the electricity market, as well as presents a decisive blow to the environment, health and human rights. By cutting off this harmful project, Kosovo has the opportunity to build European future through the transition of energy towards renewable sources, energy efficiency and an integrated and liberal market in the function of price sustainability and consumer protection.












