Is co-operation continuing for electricity even after a breach of agreement?

The breach of the energy exchange agreement by the Kosovo Energy Corporation has not prevented Albania's Electronic Corporation from continuing co-operation with KEK.

Although the Energy Regulatory Office had found KEK required energy from KESH even when there was no need and that the afterwards accepted energy has offered it on the free market, the deal is continuing.

From the Kosovo Energy Corporation, they have confirmed for Gazeta Express that the power exchange agreement with KESH is in effect,

KEK spokesman Skender Bucolli has said this deal has been very productive for both countries, especially during the energy crisis.

The “Agreement on exchange of electricity between KEK and KESH now and several years has been very productive for the two countries with particular emphasis during the energy crisis period. Under the deal if KEK has surpluses, its capacities offer to KESH, and the latter accepts them only if there is need and vice versa. Therefore, the agreement continues to be in force and will be respected whenever one side has capacities and the other side needs to be”, Bucolli said.

Bucolli has indicated that KEK has begun depositing energy towards KESH now when Albania needs it and will continue to deposit it whenever there is surplus and need.

It has also shown how much energy has been stored so far.

So we announce that during 2022 KEK deposited 226,330 in KESH. While accepting the amount of 135,965 from KESH Me. During winter months when consumption has marked rise in Kosovo, the 2022 difference has been returned to KEK, as well as KESH, has deposited the total of 91.094 Me. Now when Albania needs, KEK has begun depositing electricity towards KESH and has so far deposited the amount of 21.714 More and will continue to deposit whenever there is excess and KESH needs it. Remember that the figures presented are dynamic and may vary from day to day, especially now in the summer months, when consumption marks an increase of” in Albania, Bucolli's answers are said.

Bucolli also talked about production capacities. Currently, he said that the A-4 and A5 units are in operation, as well as unit B-2. They all say they're producing around 520. There's electricity.

Kosovo Energy Corporation currently has A-4 and A-5 units in operation with capacity of about 130 Each of them, as well as B-2 unit, with a capacity of about 260. So total KEK is producing about 520 With more power”, Bucolli declared.

Otherwise, the EC's monitoring report on the Energy Regulatory Office concerning the process of selling electricity from KEK had highlighted the numerous violations it has made.

The first violation to be listed in this report was linked to the agreement for exchange/depositing electricity to Albania's Electronic Corporation (KESH).

It said KEK had sought energy from KESH even when there was a need and then accepted energy had offered it on the free market.

“KEK has received energy from KESH even when there is no need The FSHU and the energy recognised by KESH has offered it to the free market. A similar move falls into agreement with Article 1 with Albania's NECH and Energy Corps Kosovo (KEK)”, says the ZRE Monitoring Report.

The Express newspaper had asked the KEK about the reasons it was doing so, but no answer was received. For the ZERE findings, they had also been silent by the Albanian Electronic Corporation.

In the newspaper's questions whether they have communicated with KEKU on this issue and whether they will continue the agreement even after this violation, KESH has returned the response.

Other violations were found in the report, which have influenced the pronunciation of a 3.2 million fine by the Energy Regulatory Office.

According to Z RRE, KEK has traded and continues to trade electricity with companies that have been licensed by Kosovo authorities, such as the company “Holding Slovenian electricity d.o.”.

This time around, sir. The RRE has reacted several times to official e-mail and official paperwork, where it has been issued by KEK to act in accordance with the high-profile legal obligations, and to stop the power trading activity with unlicensed electricity.

Over again, sir. THREE of 19,08.2022, has monitored the process of commercialing electricity in real time, and has noted that despite the fundamentals and demands. Z THREE for halting power trading with unlicensed electricity, KEK still carries out the activity of electricity trading incompatible with legal obligations”, the report said.

The Express newspaper had asked the Ministry of Economy if it had been informed of something like this and what actions it would take to stop that, but even this institution had returned.

THE GER had also found incorrigible auctions for the sale of electricity. One of the findings is that KEK has undergone the process of selling electricity and in cases when there have been Valide bids, as well as that during the selection winning bids there has not been standard access to one choice in all cases.

“1. KEK has not approved the internal procedure based on their market function. Given that, the trade in electricity without internal procedures is in conflict with Article 2, par. 2 of the Electrical Energy Trade Process. 2. KEK has reiterated the power supply process even in cases when there were Valide bids. A similar action by KEK is in violation of Article 13, par. 1 of the Electrical Energy Marketing Procedure. 3. KEK during the selection of winning bids has not been used standardly to elective in all cases. Given that, the selection of winning bids is not in accordance with Article 11 money. 10 and Article 12 pars. 1 and 3 Procedury of Electrical Energy Marketing. 4. With the signing of individual contracts with companies, the statements that are not licensed in Kosovo, KEK has not acted in agreement with Article 28, par.1 and par. 2 and Article 30, par.1 to Law on Energy Regulatory, Article 32, par.3 to Electricity Law, Article 2, par. 2.1.2, 2.1.3 and 2.1.6 of the market rules, Article 8, par. 1 to Procedure for Energy Marketing Electric”, ZRER found.

The monitoring report mentions both violations and the sale of electricity to cover losses in four northern municipalities.

“KEK sells electricity to COSTT for coverage of losses in the country's north, under terms of agreement on covering the system's losses. Sale of electricity to COSTS for coverage of losses in the north conflicts with the electricity trade procedure, as it has been determined that electricity trading should be subject to the free and competitive market”, the Monitoring Report said.

For all these violations, the Board of Z. RIRE “has imposed fines at the value of 3.2m euros for the Kosovo Energy Corporation”.