K E SCO: We're importing at prices of over $300, we're billing it to consumers for $60

Rudina Heroi Puka, representative of the K supply company The ESCO said that the situation due to the crisis is alarming and that the company is already feeling the crisis, even though, according to it, this crisis has not yet begun to affect consumers. She stressed that due to the high prices of import the company is forced to buy to cover the supply, the 5% cost set by the regulator on the allowed revenues has been exceeded and that this testifies to the burden the supplier is carrying as a result of the crisis. This is a crisis that is experiencing the sector. In October we have paid energy to 250 Euro/MWh, until the last few days the prices have increased by 300 Euro/MWh, to the bottom consumer we're selling it at 60 Euros, and this bar directly beats the suppliers and not only is a burden for other licenses like KOSTT, KEDS.

According to the price regulation, the moment the licensed ones exceed the costs of 5% of those allowed by the regulator to cover themselves through tariffs, the licensed one may request extraordinary consideration of the tariffs. The supplier, having been unable to cope with the subsidisation of these costs until the upcoming tariff review that goes into effect in April 2022, has used its right and has demanded extraordinary consideration. Although the regulator during the cost set has taken into account the current data for the January-July months, only for the August-ttor month gap, the supplier has exceeded the 5% threshold, which proves the burden the supplier is carrying for this increase in costs. The demand for extraordinary consideration results with an increase of 7% until the next review of the taryr”.

Other factors that can be challenging, according to Hero Puka, are the commercial boundaries from which imported energy is transported.

The risks we might face are also linked to narrow throats. So because not only Kosovo, but also the region are like countries that depend on import, import demand increases significantly. Blocking one commercial border forces energy to be drawn between alternative routes that have limited capacity. We have witnessed in the past that even if we have enough means to secure import, because narrow throats may result in not obtaining the necessary import, without discussing the fact that by increasing demand prices for capacity, which further increases the end price of imports, over what is being traded on international markets”.

Arrian Zeka and Berat Rukiqi from Odat for Business raised concern on behalf of businesses that increasing the cost of electricity supply and institutional incomparation will increase the cost of operating businesses, and especially export ones, until greater transparency and communication was demanded from the country's institutions with all hisedars, including the private sector.

If there's no extraordinary tax review then according to all expectations we can have electricity supply restrictions. This for businesses is more harmful than any price hikes itself if you look at it overall. As far as the current price crisis is concerned, according to the information we have behind us, even in the markets, we're seeing there was a stabilisation but again in the last week there's an extraordinary growth trajector. If you have observed in countries that lack such as Spain, Greece, Germany, Italy, such increases are everywhere, and this has normally created concerns, and when such concerns arise, these should be followed by politics, responses of those called. Politics or commitment cannot be limited to calling for electricity savings. When you say course you need to pass an alternative”, Rukiqi said during the discruing panel.

He also stressed that businesses should be informed with task force recommendations so that they can be prepared for what I can expect in winter.

“U mentions that we have the task force, that this task force is working, but business wants in days to buy a generator or send back those in the basement and put them into operation because if this situation goes on, look at the temperature, you'll see the overload that we'll have the next few days. The regulator has to be available, gives answers to the need for many matters that are mandatory for dogs, like KEDS/ KESCO and the Ministry recently. Will there be extraordinary tax reviews, whether there will be budgetary support for the system's companies to have access to liquids with electricity, or it will be told where the overload is going to go with reductions. If it is said that there will be extraordinary revisions, then it should be thought that many important prices and contracts that our companies have with markets will be revised. Can't have a contract rewritten within days or within weeks. It's an important negotiation process”.

According to the ministry's representative, Luan Morina these days is expected to come up with recommendations for the energy crisis.