No receipts, no price hikes in the north

Fejzullahu is chairman of the Steering Board of the Kosovo Energy Regulatory Office and is currently in the position of one explaining why the price of electricity is growing everywhere, except in four municipalities north of the Iber River.

This is a political problem now 20 years and the Energy Regulatory Office cannot solve it. We would like this process to be resolved today, but this issue has been discussed for years at the level of dialogue [for normalising Kosovo-Serbia relations] in Brussels and we hope that it will soon be resolved”, Fyzullahu says.

However, the solution does not appear on the horizon. Kosovo and Serbia have signed the Energy Agreement in 2013 and it still does not apply.

Energy Agreement

In mid-January, Kosovo Prime Minister Albin Kurti has received a letter from US Secretary of State Antony Blinken, in which he mentioned the energy issue and has shown hope that it will be resolved soon.

The “is in Kosovo's interest to resolve these issues and reach a compromise solution”, Blinken has said.

How was the problem supposed to be solved?

Kosovo, in recent months, is facing an energy crisis because of the rise in global gas prices. And, given that it does not produce enough electricity, Kosovo is forced to import at more expensive prices.

As a result, the price of electricity for consumers who spend more than 800 kilowatts a month.

The company “Electricity”, which, under the Brussels Agreement, must send and collect the bills for citizens in the north where most are of the Serbian Nationality yet to obtain licenses.

The Kosovo Energy Regulatory Office “, in a written statement for Radio Free Europe, says the license was requested in late December, 2020, but has not yet been approved, because “should be in line with the [ Brussels] Agreement and the conclusions”, which, according to Z. RRE's has not been achieved so far.

ZERE does not specify what is specifically controversial in the documentation for obtaining a license.

After signing the first Energy Agreement in 2013, Kosovo and Serbia have agreed to the conclusions on implementing this agreement in 2015.

According to them, Elektrosever “will apply to the Energy Regulatory Office needed license for consumer supply, purchase and sale of electricity in the open market, and for import and export of electricity”.

That license should be issued in line with the legal and regulatory framework, which is in effect in Kosovo.

What are the losses?

From System Operator, Transmission and Electric Energy Market in Kosovo (KOSTT) indicates that losses for the year 2021 alone have reached 40m euros.

“COMM The STT has asked the Energy Regulatory Office to urgently remove the obligation to cover losses in the north from the licensed transmission system operator, or to find another mechanism for covering these expenditures”, says a written statement by COST, sent to Radio Free Europe.

But, ZRRE says there is no other way to compensate for the costs of electricity in municipalities in the north, because Kosovo's Constitutional Court has prevented the increase of bills for citizens south of Ibri, who would compensate for the losses.

“Since then (2017) so far, electricity consumption in northern Kosovo municipalities is paid by Koo STT, or Government of the Republic of Kosovo”, says the Energy Regulatory Office.

From 1999 to 2017, the debt for Kosovo's north has paid Kosovo citizens from municipalities in the south of Ibri. Their bills have been higher by 3.5 percent.

After much complaints, however, the Court of Appeals decided at the end of 2017 about suspending this practice, arguing that it is illegal. The ruling was later confirmed by the Constitutional Court of Kosovo.

Who blocks the Energy Agreement?

On 3 February, EU special envoy for the Kosovo-Serbia dialogue Miroslav Lajcak has announced on Twitter that he has discussed energy issues with the Serbian delegation's chief in technical level dialogue with Kosovo, Petar Petkovic, but has not provided further details.

Radio Free Europe has been addressed to the European Union, which is the mediator of dialogue between Kosovo and Serbia, with questions of how far it has been achieved with implementation of the Energy Agreement and whether they agree on new details, consider that the 2013 agreement and the 2015 conclusions are not producing results.

The correct answer was not received, but it is said that “dialog continues in order to reach a comprehensive, legally binding agreement for normalising relations between Kosovo and Serbia, which would bring a permanent solution to all open issues”.

It also says that the EU and member states expect Kosovo and Serbia to show commitment to dialogue, given the direct link between normalisation of relations and concrete prospects for their European integration.

From the Kosovo government, no one has answered REL questions about how far the implementation of the Energy Agreement has been reached, what is questionable about its implementation and whether any new details are being discussed.

The same questions, the REL has also sent to the Office for Kosovo in Serbia's Government, which is led by Petar Petkov, but until the publication of this article has not been answered.

Who supplies the north with electricity?

Representatives of Kosovo and Serbia, in some cases, have made controversial statements about who supplies electricity to citizens in northern Kosovo.

COMM The STT says that the supply of electricity to all Kosovo citizens “is made and will be made by operators licensed by the Energy Regulatory Office, in line with the legal and regulatory framework of Kosovo”.

Until 14 December, 2020, when COST has operated under the SMM Block (Serbia, Northern Macedonia and Montenegro), daily reports of electricity nominations at COST by buyers and suppliers, as well as SMMM Block reports have shown that the north of Kosovo has not been supplied by Serbia”, the KOSTST say.

But, official Belgrade claims otherwise.

In late January, Petkov has said it is not true that the current that consumes Serbs in northern Kosovo has not been paid.

According to him, every kilowatt of electricity, consumed over all these years, has been paid properly because Belgrade and EPS (Serbia's electricity) -- until the beginning of the 2021 year -- have paid off electricity, which through the EMS transmission systems (Electro-Ruth of Serbia), has reached four municipalities in northern Kosovo”.

From COSTs, they also say that the SwissGrid (the Swiss transmission network operator) report shows that Kosovo supplies consumers throughout the territory, including the north.

“Citizens of the Republic of Kosovo receive the electricity from licensed ZERE suppliers, while losses for electricity consumption exploited and unpaid by citizens in the north currently cover COST8x1>, says this institution for Radio Free Europe.

How much has the price increased?

On 8 February, the Kosovo Energy Regulatory Office (ZRRE) has approved new electricity tariffs, under which all those who consume more than 800 kilowatts per month will pay more dearly.

As reported, about 20 percent of consumers consume more than 800 kilowatts per month.

For those who don't consume more than 800 kilowatts, the electricity price does not change, they will either continue to pay 7 cents for kilowatts during expensive fees and 3 cents during free tariffs.

New tariffs have entered into force on February 9th and will be valid until March 31, 2023.

The free power fee in Kosovo is between October 1st and March 31st, between 10: 00 p.m. and 7: 00 a.m.

From April 1 to September 30, the free fee is between 11: 00 and 8: 00 a.m.

Opposition parties in Kosovo, the Democratic Party of Kosovo, the Democratic League of Kosovo and the Alliance for the Future of Kosovo have expressed themselves against increasing the price of electricity.