Kosovo businesses ask ZRE to suspend free market exit decision

The League of Businesses of Kosovo, as a representative of private sector interests, calls on the Energy Regulatory Office (ZRRE) to suspend the decision to exit businesses into the free electricity market, so that it is envisioned to take effect on June 1st 2025, for businesses that have over 50 employees or circulation of over 10m euros.

This decision, under current circumstances, poses a serious risk to the financial sustainability of businesses and to the country's economic stability. We have received numerous concerns from our members, who consider this step premature and with serious consequences, Periscope.

The main reasons for our request are:

1. Unaffordable Prices: Offerers on the free market currently offer prices 200-300% higher than the current tariffs, jeopardising business innovation.

2. Risk of bankruptcy and massive job loss: Over 50,000 jobs are at stake, while local production loses competitiveness.

3. The domination of foreign suppliers: This decision increases dependence on external markets and weakens the country's energy security.

4. Insufficient preparation deadline: Businesses have only been announced 3 months before implementation, which is extremely insufficient for such a complex process.

5. Lack of consulting: There has been no comprehensive process with the business community for this decision.

Statistics show that imports have increased by 16%, while exports have dropped 6% in the first four months of the year. On June 1st, local producers will be forced to buy energy on the free market at at least 2.5 times higher prices.

Do we understand the danger?
Our products will not compete abroad;
Exports will fall even more;
Tens of factories are on the verge of closing;
Hundreds of workers risk becoming unemployed.

This decision strikes the heart of Kosovo's economy directly.

The Kosovo Business Connection has rejected this decision in the negotiating phase and has called for businesses to be given a minimum 2-year deadline for preparation so that the transition to the free market can be made under stable and manageable conditions.

Therefore, we publicly ask for the suspension of implementation of this decision for at least 2 years to protect the stability of the private sector, prevent bankruptcy and ensure a fair and equal transition.

Business won't shut up. We are firmer and more united than ever.
We remain open to co-operation and consultation with all responsible institutions to find solutions in the interest of our country's businesses, economic development and welfare.

Kosovo Business Connection