9 hours agoEnergy market liberalisation threatens business stability, employment
Periskopi(a year ago)
(a year ago)Five days before the announced liberalisation of the electricity market in Kosovo, the American Economic Oda in Kosovo reiterates its deep concern over the significant risks this transition, in its current form, poses for Kosovo's economic activity, employment and long-term competitiveness. According to OEA, until, in principle, liberalisation should [...]
According to OEA, as long as liberalisation should be a welcome goal, its success is marred by the lack of real market conditions. In Kosovo, despite numerous licensed suppliers, only one is fully functional, leaving businesses without efficient elections as well as exposing them to electricity price increases of over 200%. Consequently, this is not a competitive market, but it is an early transition that imposes an immediate financial shock on businesses that also face broader economic pressures.
These developments directly endanger thousands of jobs, especially in industries where energy consumption is higher, which form the backbone of Kosovo's productive economy.
Kosovo's total dependence on electricity, without access to alternative energy sources such as natural gas, makes comparisons with other regional liberalisation patterns unstable. The country's energy environment requires a careful approach in several stages, not a liberalisation for which only three months' notice has been granted without transitional support.
The American Oda reiterates that the lack of a functional Assembly further undermines institutional accountability and raises serious concerns about the legitimacy of implementing such a huge and unreserved change.
The American Economic Oda in Kosovo once again calls on the Energy Regulatory Office to extend the June 1st deadline and use the subsequent period for ensuring the necessary regulatory, technical and market conditions for a truly competitive energy sector. Without these aspects, liberalisation risks causing long-term damage to the economy, the business climate and the competitiveness of Kosovo.
