3 minutes agoCrisis government: Energy prices could rise, Kurti government continues subsidies for those saving electricity
Periskopi(3 years ago)
(3 years ago)The Government of Kosovo's decision to subsidise consumer bills saving electricity, “will continue to be in force until further notice”. So executive officials answered Radio Europe's free question about how long these bills will be subsidised, taking into account warnings from the Regulatory Office [...]
Thus, executive officials answered Radio Europe's free question about how long these bills will be subsidised, taking into account warnings from the Energy Regulatory Office (ZRRE) about the possibility of raising electricity tariffs, starting on April 1st.
On the basis of preliminary assessments, tariffs could rise by 14 per cent, the ZERE said, although the decision is still in the consultations phase.
From the government, they refused to talk about possible raising of tariffs, saying the “final decision must be expected”.
By September last year, the Kosovo government has subsidised consumer bills, which have saved at least 5 per cent of the energy consumed monthly, compared to the same month of the preliminary year.
These consumers have benefited twice the saving percentage.
Decision in March
The Energy Regulatory Office told Radio Europe free that in terms of preliminary assessments of tariff increases, it has already accepted comments from: Market Transmission System Operator (KOSTT), Electricity Distributment Company (KEDS), the Kosovar Company for Electricity Supply (KESCO), Kosovo Energy Corporation (KEK), President's Office and the Office of the Prime Minister.
“The ZERE is in the process of assessing the comments received by the interested parties, and after their analysis it will publish the final report in response to the” parties, the ZERE statement said.
According to her, the final decision to raise or not the bills will be made in March.
What do citizens say?
Some citizens surveyed by Radio Free Europe in Pristina say raising electricity tariffs would negatively affect their family economies.
Berat Simnica says that if the rise reaches 14 percent, it will affect the poor <x0-edge of citizens”.
“has also been expensive [al electric energy]. Now, however small, this 14 percent also have a negative effect on the family budget. It burdens the family budget in Kosovo. We are facing economic crises every day. I am convinced that the price of electricity will affect other food items and the cost of living”, Simnica says.
Beauty Johnbalaj, who lives alone with her child, says that the eventual cost of electricity will make economic situation difficult.
“In this situation, in which our society, where there was no salary increase, there was no other development in the positive sense for our economy, the increase [of electricity tariffs] would be too large. So, even for my home economy, where I live with only one child, it's too heavy, with a salary... I'm not talking here about the luxury expenses, but about the basic”, says Gjonbalaj.
Imer Hakaj expects the eventual rise in electricity tariffs to increase the prices of other daily consumer items.
Kosovo's “Government and competent institutions should take into account the serious situation in Kosovo, which we have today. They have to intervene and see some funding opportunities or something else, because for families in Kosovo, everything has been done unaffordable for life. Families in Kosovo have never been more tired than they are now”, Hakaj says.
Kosovo has completed the year 2022 at the average rate of inflation of about 12 per cent and the average salary of around 480 euros.
The minimum wage ranges from 130 to 170 euros, while pensions ranging from 100 to 265 euros.
Currently, consumers who spend more than 800 kilowatts per hour within a month pay 12.5 cents for kilowatts during expensive tariffs, while 5.9 cents during low rates. Consumers who spend less pay 7 cents for kilowatts during expensive fees and 3 cents during free fees.
Current electricity tariffs will be valid by 31 March.
The ZRR makes the review and set tariffs annually.
KEDS Keep quiet
The raising of electricity tariffs required the Electricity Distribution Company (KEDS), and its demand was for the upgrade to be 55 per cent.
This company did not answer the REL's question about what prompted it to demand this increase.
But through a statement on February 8, KEDS has justified the demand to raise electricity tariffs with the rise of the imported electricity price, as well as the inability of the Kosovo Energy Corporation (KEK) to produce needed electricity, especially during the winter season.
The right non-reflection risks KEDS' financial position, while at the same time endangers the security of electricity supply in the country”, it is said at this request.
Currently, Kosovo has the capacity to produce about 800 megawatts per hour, while its needs, in winter day, reach up to 1,300 megavats per hour. Discreet, she imports it from the outside.
Kosovo imports electricity according to the price of electricity on the Hungarian HUPX Stock Exchange.
In August 2021, the price was 150 euros for megawatts. In August 2022, the price reached about 430 euros for megawatts, but was later stabilised at about 260 euros.
On March 7, 2023, the price for megaves on the HUPX Stock Exchange was 142 euros.
Ramos: The lift is not high, but the big effect
Based on global price movement, the <x0-rate increase of electricity tariffs by 14 percent is not high”, says Berim Ramosaj, economics professor at Pristina University.
But, based on the structure of the population in Kosovo and its economic situation, the rise of electricity tariffs raises major questions about the possibility of facing, Ramosaj says.
If there are powerful arguments Z The RRE, that prices have been raised, then the Government would have to allow this price hike. But also, it has to subsidize those families, which have low incomes, those percentages of the population, which really didn't have an increase in income”, says Ramosaj for Radio Free Europe.
Ramosaj adds that if the increase in electricity tariffs by 14 percent will be linear, therefore, for all consumers then for production enterprises, which are huge suppliers of electricity, there will be increased costs of their production or services.
This, according to him, will cause chain effect and will have price increases for general consumer products as well.
The consequences, Ramosaj says, will mostly suffer low-income social categories.
Despite price hikes, under normal conditions, the Government would have had to subsidize those categories”, he says.
Kosovo's Finance, Labour and Transfers Minister, Iron Murati, has said on February 3rd that government subsidies for the current have benefited over 200,000 families.
