Kosovo warns rising electricity price for more than 30%

Officials of the Kosovo Electricity Distribution Company (KEDS) are confirming for Radio Europe Free Europe, saying the energy crisis in Europe directly affects Kosovo as well.

“Ration will be necessary, over 30 percent, based on the current situation. But what will happen during the winter months, what will be the consumption? What will be the price of import? What will then be the local product? This also determines growth”, ECDS spokesman Viktor Buzhala tells Radio Europe Free.

Europe, now and for many weeks, has been involved in the energy crisis because of increased gas prices and other factors. As a result, consumers are receiving much higher electricity bills.

Kosovo citizens currently pay the lowest price in the region for energy spent. For a kilowat an hour, they pay about six cents.

According to the European Statistics Agency, in Serbia a kilowatt hours cost about 8 cents, in northern Macedonia as well as about 8 cents, in Bosnia and Herzegovina about 9 cents, in Albania about 9.5 cents and in the most expensive Montenegro: about 10 cents.

According to KED officials, the price in Kosovo is not expected to change at least April 1st, 2022, when the Energy Regulatory Office (ZRRE) makes regular revision of tariffs.

Some citizens say they cannot afford price hikes
Qamil Nika, a pensioner living in Pristina, says rising the price of electricity, would make life more difficult, at a time when prices of other consumer products have already increased.

“Sometimes the current doesn't make anything expensive. This month I paid 71 euros. If the price of electricity goes up, I have to get a pension ready to pay. Pension I get 182 euros”, Nica says.

If the current costs 30 percent, its 71 euro bill may reach over 90 euros.

Nica says that in his eight-member family, some work, but have low wages to cover the cost of living.

We're not even allowed to enter the store. You don't have to go in unless you come in and look at the products around. They're lying about releasing products, but, in fact, they're costing them”, Nica says.

Idriz Fazliu says his electricity bill for the month of October has been 20 euros. He lives alone in the house, and heat does it with burning wood.

The prices have doubled, sugar, tea, and other articles, there is nothing cheap. They're getting expensive every day. How do we pay for the rising current?

In Kosovo, recent months, prices of basic products have been markedly expensive.

According to data from the Kosovo Statistics Agency, price hikes have started from April to 1.2 percent, reaching 4.9 percent in September.

Greater price movements have had - bread, oil, sugar, flour, and trees and vegetables.

Enhanced Energy Price Quadulated
Despite citizens' concern, in KEDs say rising electricity prices will be necessary, if electricity import prices continue to be high.

KED spokesman Buzhala says that increased consumption in Kosovo has been observed since October 50, which, according to him, has prompted this company to import electricity at a price of 4 to 5 times more expensive than last year.

The additional cost will be somewhere around 60m euros, but this can be increased or reduced, depending on domestic consumption and production”, Buzhala says.

According to KED, the average price for megawatts/hours for energy imported in October 2020 has been 49 euros, unlike October of this year, when the price has reached 242 euros.

To manage the situation created by the energy crisis, the Government of Kosovo has created a working group, which, according to Economy Minister Artane Rizvanolli, will have an informative and advisory role. Part of the processing group will be all the electro-energenetic chain acters.

Kadriaj: Quick plan needed for businesses and family economies
Economics professor Mustafe Kadriaj says that the eventual increase in the electricity price for more than 30 percent will cause trouble for businesses, and will aggravate the economic situation of households who have no other option for heating except electricity.

It's known that first it's businesses that will get a little heavier doing business, as well as family economies. The worst part is that we're now entering the winter season, where a large proportion of citizens especially in urban areas have it forced to warm up through electricity. Of course it will burden the citizen's pocket, because even the low wage rate in Kosovo is known, as well as the high unemployment rate”, Kadriaj says.

According to him, any price hikes present problems for citizens, since there have been no salary hikes in either the public sector or in private.

The average gross salary in Kosovo is estimated to be around 460 euros.

The average gross salary in the public sector is around 620 euros, while in the private sector around 380 euros.

Average salaries in other Western Balkan states do not differ much from that of Kosovo.

In the January-September period, 2020, according to data from the Republican Bureau of Statistics in Serbia, the average net wage in the private sector was 431 euros, while in the public sector, 521 euros.

Albania's Statistics Institute (Instat) has published the data for the first part of 2021, including only the gross wage of 460 euros.

The average net salary in Bosnia and Herzegovina is estimated to be 483 euros. In this country, average net salaries in the private and public sector have not been made public.

Recent data for Montenegro shows that the average net salary is 520 euros, while that gross amount to the average amount of 784 euros.

In northern Macedonia, according to the latest public data, the average net salary is 473 euros.

Private Sector Seeks Subvention
The head of Kosovo's Independent Private Sector Union, Yusuf Azemi, says increasing the price of electricity would burden more private sector workers' pocket.

“We, even without the price of electricity, are actually barely making ends meet, says Azem for Radio Free Europe.

According to him, workers in this sector have poor job insecurity and low wages.

“Institutions have had to make preparations that, if it came to priceing electricity over 30 percent... then especially families, which are only with the minimum wage, would have to (use state subsidies) a 100-euro amount within the month, until energy stabilisation in Kosovo”, Azemi says.

Azem says governments in the region have developed strategies to cope with the energy crisis and, according to him, should do so, especially supporting families living on social assistance.

According to Kosovo institutions' data, the unemployment rate in the country is 25 percent.

About 26 thousand families in Kosovo are dependent on social assistance, amounting to 60 to 180 euros.