Government plans 75m euros for energy subsidies

Through these subsidies it is said to be aimed at easing the increase in the electricity fee.

“Taking into account the state of emergency and unprecedented in the European electricity markets that have influenced Kosovo, the Government of the Republic of Kosovo at the request of the Ministry of Economy has pledged to subsidise Kosovo citizens and businesses, thus protecting them from raising tariffs. Subventions present revenue for the sector that is not necessary to cover electricity tariffs and, therefore, soften the growth of the electricity fee”, the ministry's communique said.

According to the Ministry, the government's subsidy of electricity will impact that the tariff for business consumers remains at 0% growth, the tariff for home consumers until consumption of 600 kWh remains at 0% growth, while the Z-proposed tariff RRE for household consumers for consumption over 600 kWh to be reduced, reflecting the import price for these consumers and promoting energy efficiency.

“During this extraordinary time, the primary goal of the subsidy shared by the Kosovo Government is especially to protect consumers sensitive to the impact of higher electricity prices”, the ministry's communiqué said.

Otherwise, according to the ZERE, consumers who spend up to 800 kWh per month and those who spend even more will not help the government's subsidy.

The ERC report proposes that the fee for consumers at 800kWh spent monthly will rise to 13.31 euros. While consumers who spend 1,000 kWh of electricity per month, according to the ZRRE proposal face a 24.62-euro electricity price increase.

How are consumers classified?

The consumer who spends 300 kWh/months is estimated to be a consumer who spends the energy needed to cover essential needs for a four-member family. During the year, 20.5% of consumers do not pass this threshold in a month, according to the ZRRE. These consumers get into category A.

The 450kWh/month consumer represents the average consumption of a household consumer over the year. Based on KED's data, average consumption (from 2012 to 2020) from households that spend over 300 kWh/months is~ 460 kWh/months. Average consumption in 2021 for household consumers who spend over 300 kWh of electricity is about 440 kWh/months. During the year, 44% of consumers do not pass this threshold in a month. These consumers get into category B.

The 600kWh/month consumption consumer shows minimal consumption of a consumer with electricity heat during the winter, based on analyses during the bloc's deployment on previous tariffs, 69% of consumers do not pass this threshold in a month during the year, and 79% of consumers do not cross this level during summer months. These consumers get into category C.

The 800 kWh/month consumption consumer presents a consumer with consumption over the proposed bloc. These consumers get into category D.

The 1000kWh/month consumer represents a consumer with higher electricity consumption. These consumers get into category E.

The ERC has offered companies, consumers and other interest parties the opportunity to review the data and attitudes presented in the published report and comment on them, presenting arguments against or offering new data. /Gazza Express

Full communication:

Pristina 18,01.2022 ) The Energy Regulatory Office (ZRRE), the independent institution responsible for determining tariffs that reflect the cost for bottom consumers, has released its Consultative Report on Extensive Electricity Targets.

This has come as a result of the last quarter of 2021, when Kosovo has had to import electricity to supply consumers with electricity above the level that can be provided by local generation capacity and meet demand increases as a result of cold weather. The cost of electricity supply from imports has risen significantly, affecting energy costs as well.

ZRRE has proposed restoring fee block to 600 A land for household consumers, as well as for electricity tariffs to be raised 9% for all commercial consumers and household consumers that consume up to 600 KWh, while households consumption fees over 600 KWh would reflect the import price.

Taking into account the extraordinary and unprecedented situation in the European electricity markets that have influenced Kosovo, the Government of the Republic of Kosovo at the request of the Ministry of Economy has pledged to subsidise Kosovo's citizens and businesses, thus protecting them from raising tariffs. Subventions represent revenue for the sector that is not necessary to cover electricity tariffs and therefore ease the increase in the electricity fee.

Government energy subsidies will impact that the fee for business consumers remains at 0% growth, home consumers' tariffs by 600 kU remains at 0% increase, while the Z-proposed tariff remains at 0% RRE for household consumers for consumption over 600 kU is reduced, reflecting the import price for these consumers and promoting energy efficiency.

During this extraordinary time, the primary goal of the subsidy shared by the Kosovo government is especially to protect consumers sensitive to the impact of higher electricity prices.