Priceless currents: What does Kosovo learn from neighbors?

Kosovo launched this process with major businesses on June 1st, but continues to have reactions and concerns both about prices and about preparing the country.

Representatives of economic subjects seek to postpone at least a year, arguing that prices offered by companies licensed for electricity supply are much higher than regulated by the Energy Regulatory Office.

What does liberalising the electricity market mean?
Under the decision of the Energy Regulatory Office (ZRRE), from June 1st, 2025, all companies in Kosovo that have more than 50 workers or circulation over 10m euros a year have been forced to cross the open energy market.

Prices on the open market depend on demand and offers, so they can be higher and variable.

Albania: Massive Liberalisation and Challenges
The process of liberalising the energy market in Albania has been under way since 2011, but practical implementation has begun gradually since 2018, according to electricity pressure levels.

Initially, in the open market, 35 kilowatts (KW) have been passed into tense businesses, then on 20 kW and recently on 10 kW.

They are usually big businesses, such as plants, mines, private hospitals, shopping centres and financial institutions with more energy costs, says Nikolin Jaka, chairman of the Chamber of Commerce and Industry in Tirana.

Speaking to Radio Free Europe, he acknowledges that the transition to the free market is conveyed with challenges, as prices are higher and unstable.

Currently, they behave at about 19 cents per kilowat per hour.

“These are prices higher than adjusted”, Jaka points out.

Businesses in Albania can choose local suppliers or international stock exchanges according to needs and agreements.

Jaka says that, in most cases, they are supplied by domestic producers, since Albania has enough electricity produced by local sources, but in cases when demand exceeds domestic demand, they are imported from international stock exchanges.

At the Energy Regulatory Administration in Albania, 26 companies that offer the power supply service are licensed.

Energy expert in this country Lawrence Gordani says such market liberalisation, though in the long term, becomes convenient in the long run because it enables business to select the supplier itself and negotiate more favourable conditions.

This gives businesses more control over their operational costs and encourages suppliers to be more innovative and efficient”, Gordani says of Radio Free Europe, broadcast Periscope.

The main challenge for businesses in Albania, he recalls, have been the lack of information to operate in the open market and the limited number of energy suppliers.

He admits that in some cases, especially during the energy crisis in Europe, caused by Ukraine's Russian invasion, businesses that have been released on the free market have paid prices far higher than those regulated.

But, over time and increased competition, Gordani says, prices stabilize and more rightly reflect the demand-off report.

Northern Macedonia: Energy crisis as turning point

In northern Macedonia, the Law on Energy that paved the way for market liberalisation was adopted in 2018, but the licensing of supply companies began only after 2020.

The real market crossing took place in 2021 at the peak of the energy crisis in Europe.

Sami Morina, a member of the Steering Council in northwest Macedonia's Economic Ode, says businesses initially hesitated, as prices were very high and local capacities were lacking.

But now, according to him, the situation has changed.

“Many companies consider buying energy through international stock exchanges favourable, as they can make their own calculations and forecasts for monthly or seasonal costs”, Morina says of Radio Free Europe.

According to him, they buy energy mainly on the Hungarian stock exchange, HUPEX, at prices ranging up to 110 euros per hour megawatt.

In the Macedonian market, 80 supply companies are licensed, and by 2023 the MEMO agency runs the next day's prices.

Another positive development, according to Morina, is investment of businesses in renewable energy sources and energy storage technologies.

“They buy energy when the market price is lower and use it in terms of rising prices, thus profiting”, Morina says.

Kosovo: Debat and Uncertainty From Start

In Kosovo 21 companies for energy supply are licensed, and another is in the process of licensing.

On June 1st, large companies are out of place and should link contracts with licensed suppliers.

The RER has estimated that the process has been successfully passed, while businesses that have not yet entered contracts with licensed companies are being supplied by the Kosovo Energy Corporation in the quality of the Last possible provider for a two-month period.

A day before the decision's entry into force, Kosovo Economic Ode Chairman Lulzim Rafuna has called on the country's institutions to demand from the ERE to postpone the process, saying that the exit of businesses into the open market will have <x0-effective negative” for both the economy and citizens.

Business representatives have protested, too.

Arben Klokoqi, expert at the Energy Community Secretariat in Vienna, says liberalisation of the energy market is the necessary and legally binding process for Kosovo since 2016.

Despite the challenges, he says he sees no reason for Kosovo not to implement this model, which has worked in the region.

Liberalisation of the energy market is the European Union's request through the Energy Community Treaty, signed since 2005.

The treaty in question is signed by Kosovo, Albania, Bosnia and Herzegovina, Northern Macedonia, Serbia, Montenegro, Bulgaria, Romania and Croatia.

It forces countries to harmonise legislation and follow the gradual opening of markets. /Periscope