American Economic Oda: Energy market liberalisation is already causing damage

It has called on the Energy Regulatory Office to urgently halt the process until essential preconditions are met, it broadcasts. Periscope.

The warning of private sector representatives is already coming true, since a few days since market liberalisation has entered into force, at least two production companies have announced the suspension of operations, citing electricity costs and instability created as the main reasons, while state institutions have been informed of these developments. This confirms that liberalisation, as it has begun to implement, is not only premature, but also undermining Kosovo's economic activity and investment climate”.

“Until liberalisation remains a strategic imperative on Kosovo's road towards regional and EU integration in energy, this transition should be managed with responsibility, transparency and with preparation from all sides. Statements published yesterday in the Kosovo media attributed to the European Union clearly stress this point: liberalisation should be gradual and managed in a way that minimizes social and economic disorders”.

“As stated several times by the American Oda and other Heeders representing private sector interests, liberalisation has occurred without meeting the market's necessary criteria, in terms of limited competition in terms of supply, placing an unaffordable burden on large businesses”.

Responding to claims by some policymakers that the pressure of the business community has to do with the demand for more time that these can be prepared, the American Oda stresses that this is a misinterpretation of the private sector position. Businesses have repeatedly demanded and clearly that, before consumer adaptation is required, the market should be the one that should be prepared”.

According to this approach, liberalising a market operating with only one active supplier is not literal competition, but a theoretical reform, implemented at the moment of institutional vacuum, with serious consequences for the private sector and for the country's economic stability.

Therefore, American Economic Oda in Kosovo reiterates its call to Z The RRE to take immediate corrective action by interrupting the liberalisation process until a functioning and competitive market is established, as well as until transitional support measures are established.