Energy market liberalisation: Businesses Face Cost Growth

At the request of the Energy Regulatory Office in Kosovo (ZRRE), all companies with over 50 workers or circulation over 10m euros will appear on the open energy market by 1 June.

As part of the Law on Electricity, this provision implies that businesses must select their own electricity suppliers.

Their representatives, but also the businesspeople, warn that this transition could cause economic disorders and increases in product prices.

“As we are provided from regular supply to unregulated supply, I believe the current will be more than 70 per cent more expensive than currently”, Free Europe Radio, Aladin Field, company representative “A B KPK”, broadcast Periscope.

This company, based in Prizren, has 13 different companies under its umbrella, offering food products and other services, and employs about 600 workers.

Currently, it pays over 65 thousand euros a year for spent energy bills. The cost has been halved since 2021, due to investments in solar panels.

The field says that with the liberalisation of the energy market, the price for kilowatt cannot be cut below 15 cents, from about 7 cents as much as the company currently pays.

This, according to him, will certainly reflect on the cost of products and services.

Where can electricity companies be supplied?

According to the ZRRE, consumers appearing on the liberalised energy market can be supplied by any local company that owns licenses or by foreign companies.

Energy supply operator KESCO is the main supplier licensed for electricity in Kosovo.

The price of his products defines the ERE.

According to the ZRRE, 18 other companies are licensed in Kosovo.

“They can carry out the majority power supply and trade activity”, the regulator for Radio Free Europe says, but no more specified around them.

K The ESCO, in a release published on March 5th, announced that at ZERE request, commercial companies with over 50 workers or circulation of over 10m euros will have to choose the power supply within 15 days, as by June 1st, they will no longer be on the list of fixed tariff consumers.

They will go into unregulated prices supply, which is determined by demand and market offerings.

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The chairman of the Kosovo Economic House (OEK), Lulzim Rafuna, says this change in supply will have serious consequences for large businesses, which are mainly producers.

According to him, the price of electricity is not available now.

And the next expensive will affect the price of products on the local market. It can also undermine their competitiveness on the international market”, Rafuna tells Radio Free Europe.

In Kosovo, active businesses according to the number of workers are divided into micros, employed by between 1 and 9 workers; small by 10 to 49 workers; medium with 50 to 249 workers and large with over 250 workers.

The number of last two categories totals about 17,300, according to OEK.

Rafuna says OEK is interested in other companies that mention Z The RRE for supply, but, according to him, they do not function as regular suppliers.

“Institutions have not created conditions for an open and competitive market. Businesses are forced to go to the free market, but without an opportunity to negotiate a cheaper price and better energy. This could create monopolies from KESCO, which would dictate prices”, Rafuna says.

So does businessman Field.

After the ECCO announcement, I'm interested in this issue, but there are no other companies that guarantee stable bids. In the end, we'll be refueled by KESCO, but at a much higher price”, according to him.

Radio Free Europe asked KESCO what prices will be for businesses entering the liberalised market and continue to remain its clients, but received no answers.

Currently, for household consumers and commercials who spend up to 800 kilowatts per hour within a month, the daily electricity price is 7.79 cents per kilowatt, while for those who spend more than 800 kilowatts, the share on this was counted at a price of 14.45 cents. / REL/