ZERE: Large businesses switch to open energy market

ZERE: Large businesses switch to open energy market

The Energy Regulatory Office announced that on June 1st big businesses have switched to the open energy market. “successfully, all that have contracted contracts to suppliers have emerged on the open market. Those that did not have a contract have been automatically passed to the Fund's Subservation Supplier, said [...]

The Energy Regulatory Office announced that on June 1st big businesses have switched to the open energy market.

“successfully, all that have contracted contracts to suppliers have emerged on the open market. Those that did not have the contract have been automatically transferred to the Last Access Supplier”, ZRER board chairman Ymer Fejzullahu told Radio Free Europe.

However, Feyzullahu gave no figures on how many companies -- from about 1,300 affected by the market liberalisation decision -- have entered contracts, and how many more will be supplied with electricity from the Last possible supplier.

Passing into the open market, to the market at unregulated prices for energy supplies, is taking place, respectively, despite multiple business objections.

Under this ZER decision, all major businesses, with over 50 workers or annual circulation of over 10m euros, have had to choose for themselves a company licensed for electricity supply.

If they haven't managed to select, these businesses from June 1st have gone automatically to the open market, where the supply is made by the Kosovo Energy Corporation (KEK), in the quality of the Last possible provider,(FMF) but at prices set by the market.

The FMF can supply only two months of energy to companies, and if after this period those that do not find suppliers are at risk of breaking off the power grid.

Currently, 21 commercial companies for power supply are licensed in Kosovo, while another company is under way.

However, according to Economy Minister Artane Rizvanolli, only five have so far submitted concrete offers for the business sector.

Part of these companies is the Energy Supply Operator, K ESCO, which currently supplies most family and industrial consumers in the country.

Radio Free Europe has talked to several businesses this week and none of them have signed agreements with licensed companies.

According to them, alone. K ESCO has provided a price offering of up to 260 euros for megawatts that they consider affordable.

K E SCO has not officially confirmed this award.

Due to the high energy price and lack of bids by supply companies on May 29th, hundreds of businesses protested, blocking for two hours Pristina's three main entrances with trucks and vehicles.

The chairman of the Kosovo Chamber of Economics, Lulzim Rafuna, said businesses are demanding that implementation of the decision be postponed for a year, since “did not make the necessary preparations for this big change”.

On the other hand, Nyazi Musliu, owner of the Euromethal company in Ferizaj, which has close to 90 employees, has described the decision as devastating to his business.

In Thursday's protest, he stressed that this development makes competition impossible in the markets of the region and Europe, where his company is present with metal processing products.

We will be forced to reduce the number of workers below 50, only not to enter the open market in order to save the customers at the current” prices, he told Radio Free Europe.

But, incumbent Kosovo Prime Minister Albin Kurti criticised the Economic Ode, saying that “has done nothing” to prepare businesses for the process.

On the other hand, Z. The RRE has said Friday about Radio Free Europe, that some private businesses and public companies have already signed contracts with companies licensed for electricity supply.

In Kosovo, liberalisation of the energy market is envisioned with the Law on Electricity adopted in 2016, but implementation has been delayed because of various circumstances. / REL/ Periscope.

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