Elektrosever contract KEDS: In the north, they want to know if they'll pay the electricity

Elektrosever is owned by Serbia's energy company EPS (Electroprivreda Srbije), but in Kosovo it is founded according to local laws. It stems from the agreement between Kosovo and Serbia on energy, reached within the dialogue for normalisation of relations.

The European Union, which brokers dialogue, announced on December 9th that Elektroseveri and KED have signed a commercial energy contract.

“This is an important step towards the implementation of the Guide for Energy and towards normalising relations between Kosovo and Serbia”, EU Special Envoy for Dialogue Miroslav Lajcak wrote on the Social Network X.

Meanwhile, on December 11th, Kosovo Deputy Prime Minister Besnik Bislimi said the signing of the commercial contract between KEDS and Elektroseveri implies a step towards normalising the electricity supply in four municipalities in the north, but also paying bills.

Citizens of northern Mitrovica, Leposaviqi, Zvecan and Zubin Potok have not paid their bills for energy consumed since 1999.

What does the signed contract mean?

In a written response to Radio Free Europe, KEDS says that with the signing of this contract, Elektroseveri could start supplying electricity to northern Kosovo.

“This enables contracts signed between KEDS and Elektroseverer, along with the regular roles and responsibilities of each side, in line with primary and secondary legislation implemented in the Republic of Kosovo”, said ECDS spokesman Lulzim Krasniqi.

He also added that the commercial contract has been signed on the basis of agreements reached in advance under dialogue, and that Elektroseveri, “as KEDS subcontacter, should meet the guarantee of contracting distribution and supply services, based on the supplier's license in northern Kosovo”.

The contract signed with KEDS regulates the use of the distribution network under contract for keys, as well as other active suppliers in Kosovo”, Krasniqi says.

However, this company has not clearly answered the question, whether it means that citizens in the north will start paying electricity bills after more than two decades.

Kosovo's deputy prime minister and chief negotiator in dialogue with Serbia, Besnik Bislimi, has given the answer to this question.

The “now needs to move forward with the other steps needed to end after more than 20 years, the illegality of the stream's default”, Bislimi wrote on his Facebook account.

What do citizens say?

Mirjana from North Mitrovica, the Serb-run municipality in northern Kosovo, does not know what the signing of the commercial contract between the Serbian company Elektrosever and the KEDS of Kosovo means in practice.

We're confused, first I, what this means to us. With whom do we sign the contract, when will we [start] to pay off electricity? I think it's important for someone to address the public, to simply explain what will happen to the” stream, Mirjana said in a proposal for Radio Free Europe.

“I have no idea what” will be, said another North Mitrovica resident, who demanded that his name and last name not be mentioned publicly. According to him, the “people have been deceived” and believe no one knows what the signing of the commercial contract with KEDS means for northern citizens.

Meanwhile, Nenad stressed that, the “is time to start paying off electricity”.

If we want to look at it one way, not pay off electricity for a quarter of a century, there's no such thing anywhere in the world. On the other hand, we will see what those contracts offer, whether there will be privileges, whether old debts will be erased and how payment will be made”, Nenad told Radio Free Europe.

Debts for consumed electricity in northern Kosovo -- by 2017 -- are covered by the Kosovo Government's System, Transmission and Electricity Market (KOSTT). Until then, the debt for the north was paid by Kosovo citizens from other municipalities in the south of Ibri, so their bills were higher by 3.5 percent.

What do they say from Serbia?

REL has been addressed to the Serbian public company Elektroprivreda Srbije (EPS), under which it is Elektrosever, with the question of what concrete steps it envisions commercial contracts with KED and what exactly it means in practice. But until the publication of this article, the answer has not come.

Serbia's president, Aleksandar Vuciq, said on December 10th that one of the next steps is for the Elektrosever company to sign a “contract with the population” -- namely, consumers in northern Kosovo.

He stressed that “we are also looking at details” of the agreement between Elektrosever and KEDS companies, but that the official Belgrade's main goal is to avoid any possibility that the people in northern Kosovo will remain without electricity”.

“Findation, this is the most important thing for us”, Vuciq said.

He added that the agreement between Elektroseverer and KEDS “does not prejudge the property issue”, but has not specified which property it is talking about, nor what this specifically means.

Neither has Kosovo's KED provided concrete answers to the property question.

What do energy agreements foresee?

Kosovo and Serbia reached their first energy agreement in 2013. Among other things, it envisions the formation of the Elektrosever company, which will supply consumers with electricity, provide distribution services, or the delivery and collection of bills, as well as the maintenance and physical connections of young consumers.

Then, in 2015, conclusions for implementation of the energy agreement were adopted, which envision concrete steps for the establishment of Elektrosvere, according to Kosovo laws.

But in June 2022, due to the delay in implementing these agreements, with EU mediation, the Guide for Implementation of the Energy Agreement was approved.

This guide also provided clear steps towards implementing the agreement, which had to take place within 100 days but were not realised within that deadline.

Kosovo and Serbia burdened each other with responsibility, while the European Union, earlier, said the delay was caused by “technical reasons”.

The guide for implementation of the energy deal envisions that the Elektrosever company gets licenses to work in Kosovo and sign technical agreements with the Kosovo Power Distribution Company (KEDS) and System, Transmission and Electricity Market Operator in Kosovo (KOSTT).

Afterwards, the Elektrosver has had to receive identification codes for performing activities, while KEDS and COST have access to the Vallach substation in northern Kosovo, as well as to the other infrastructure for power distribution.

Also, the Energy Agreement Implementation Guide reportedly KEDS and COSTT, in consultation with the Elektroseverer, must hand over to the Energy Regulatory Office (ZRRE) investment plan, maintenance costs, and network losses, based on the analysis of existing infrastructure.

Most of the points by the Guide to Implementation of Energy Agreements have been implemented.

After signing technical agreements in October last year, COSTT announced it is ready to invest in the Vallach substation.

This substation in northern Kosovo provides much of the electricity for northern citizens of the country, as well as supplying hydropower to Weiman Lake (Gazioda).