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Electricity

Electricity prices in Western Balkans highest in Albania, Montenegro, lowest in Kosovo*

electricity prices acer report energy community

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Published

October 29, 2020

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Published:

October 29, 2020

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Average household electricity prices in the Energy Community contracting parties (EnC CPs) – Albania, Bosnia and Herzegovina, Georgia, Moldova, North Macedonia, Kosovo*, Montenegro and Serbia (excluding Ukraine) decreased by 1.6% to 7.66 euro cents/kWh in 2019. However, average industry electricity prices increased by 11% to 7.27 euro cents/kWh.

According to the ACER Market Monitoring Report 2019 – Energy Retail and Consumer Protection Volume, the price for household consumers was 2.8 times lower than in the EU last year. On the other hand, the price for the industry in the EU was around 11 euro cents/kWh or only 35% higher than in the EnC CPs.

Electricity is the most expensive in Albania, and Montenegro, and the cheapest in Kosovo*

From 2013 to 2019, electricity prices for households in the EnC CPs, excluding Ukraine, increased by 15.8% on average, while industrial prices increased by 12.8%. From 2013 to 2017, tariffs decreased for industrial electricity consumers in the majority of the EnC CPs. However, the trend was reversed in 2018 and 2019.

End-consumer prices for households are not regulated only in Montenegro

Montenegro had the highest household electricity prices (10.32 euro cents/kWh) while the lowest were in Kosovo* (6 euro cents/kWh), excluding Ukraine.

Prices for the industry were the highest in Albania, 12.5 euro cents/kWh, and the lowest in Kosovo*, 5.2 euro cents/kWh.

electricity prices energy community eu

End-consumer prices for households were still regulated in all EnC CPs except Montenegro, which sometimes resulting in prices being set below actual costs, the report reads.

Share of renewables’ charges is highest in North Macedonia

The share of renewables (RES) charges in the final price gives an indication of the support for renewable electricity production in the EnC CPs. In Albania, Kosovo*, and Moldova, no RES support mechanism was reported by the NRAs for 2019.

RES support amounts to 1% of the final household electricity price in BiH and Serbia, and 7% in North Macedonia, according to the report.

In the EU, the share of RES charges was 14% in 2019.

In Montenegro, a RES support scheme was part of the final electricity price until mid-2019, when it changed. A RES fee is now paid by end-users for every kWh above 300kWh consumed monthly, the report underlines.

The share of the energy component in the final bill was the highest in Albania (63%) and the lowest in Serbia (34%), the report reads.

In the EU, the energy component accounted for 75% of the final bill in Malta, but only for 20% in Denmark.

* This designation is without prejudice to positions on status and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.

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