Entity-free businesses risk power cuts on July 31st

On July 31st, all businesses in Kosovo with over 50 workers, or annual circulation of over 10m euros, which have not contracted any licensed electricity suppliers, will remain without power.

The warning has come from the Energy Regulatory Office (ZRRE), which stresses that the 60-day interim supply deadline will be completed on 30 July.

Currently, major private companies are being supplied by the Kosovo Energy Corporation (KEK), which is acting as the Last Options provider (FMF).

After this deadline expired, this provider no longer has the right to provide energy for these companies.

This request is derived from the law, and the Energy Regulatory Office (ZRRE) is unable to extend or change this deadline. Consequently, on July 31st, all consumers without suppliers will be shut off from the” power grid, Free Europe Radio from ZRRE said.

The 60-day period of support from the Last possible provider began on 1 June, when the ZERE decision to liberalise the electricity market has entered into force.

Under this decision, all private and public companies that have over 50 workers or annual circulation of over 10m euros are obliged to switch to the open energy market, choosing a licensed supplier themselves. That means they will go into price supply, which is determined by demand and market offerings.

So far, more than 1,300 companies with more than 9,367 power measures are involved in the open market.

A company may have more than one electrical unit.

The exact number of companies that have contracted contracts with licensed commercial suppliers is unknown, but in the ZRRE say there are 2,198 such measures.

And 7,169 measuring points are supplied by the Last possible supplier, meaning that by Thursday they should choose the licensed supplier.

What should businesses do now?

The ZERE and KEK, as responsible institutions, have called on all businesses to quickly contact licensed suppliers and sign new supply contracts to avoid power cuts.

In Kosovo, 22 companies for electricity supply are licensed, while another three are in the process of licensing.

One of them is Energy Supply Operator (KESCO), which supplies most family and industrial consumers.

Also, there is the Kosovo Energy Corporation (KEK).

With KESCO, so far the contract has signed about 100 businesses and the signing of ten other requirements is under way.

“Intercession continues to be very high, especially in the last few days ] taking into account that KESCO is the company with the longest experience in supplying and trading energy in Kosovo”, says in a response to Radio Free Europe from this company.

They add that they are working with increased capacities in order to meet any requirements before July 30th, when the provisional supply from KEK is also completed as the Last possible provider.

One of the companies waiting to sign the contract before July 30th is the Pesova company from Vushtrria.

Bedri Kosumi, owner of this company, numbering 260 workers, says he is obliged to contract with KESCO. He said other licensed companies have not submitted any offers.

I don't have another option, I'm being forced into a contract. Because, if you stop power, you risk production. I still have no information on the power price details. But, the main thing is not to get out of the power, and now we look at”, he said.

And a production company, which until a few months ago had about 90 workers to escape market liberalisation, has found another alternative.

The owner of this company (known name for editing) said the company is divided into two new entities -- one has preserved the old name, while the other is registered by a new name.

Now, each of them has fewer than 50 workers.

REL has asked the Kosovo Energy Corporation (KEK) and dozens of other companies licensed if they have started to link contracts with private or public businesses, but only one of them has responded.

The owner of the company “Enerco LLC”, Youth Klaiqi, said he has started signing contracts with businesses in recent days, but did not show their number, nor did he show the price of energy. He said only that energy for supply is provided through the Albanian Electricity Stock Exchange (ALPEX).

The “is a bit of a stressful situation for businesses, because everyone has left negotiating and signing contracts for the past few days, as they have expected it will change something”, Klaiqi said.

Liberalisation and the Consequences for Business

Business representatives have consistently rejected the process, as they say the price of energy on the open market is much higher.

The chairman of the Kosovo Economic Ode, Lulzim Rafuna, has reiterated the demand that the process of liberalising the energy market be suspended until 1 February 2026.

This phase, according to him, is needed to have competitive energy trade companies at the same time so businesses can invest in alternative energy.

He said most businesses have not yet received favourable bids and are being forced to link inappropriate contracts.

It is not enough for businesses to be forced into free market and left at the mercy of fate or at the mercy of an bidder, as we have KESCO. Although there are other licensed companies, they have not yet managed to create a concrete offer”, Rafuna said.

If suspension or postponement does not occur, Rafuna says producers will be severely damaged by reducing export value.

But, the ZRRE says there is no legal basis for automatic or general extension of the supply period from the FMF beyond the 60-day deadline.

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.

And in the countries of the European Union, the process of liberalising the energy market has started in the late 1990s with the aim of increasing competitiveness, efficiency, security and choice for consumers.

In the Western Balkans, this process is still under way. / REL/