Kosovo* power distributor KEDS cuts off businesses without supplier after market liberalization

Kosovo’s distribution system operator, KEDS, has disconnected around 90% of electricity meters belonging to businesses that have not signed an agreement with a licensed supplier following the power market liberalization. KEDS, owned by Turkish companies Çalik Holding and Limak, claims the law prohibits it from keeping any consumers on the grid who do not have a licensed supplier, while the Kosovo Chamber of Commerce says it will press ahead with a legal battle.

KEDS’ spokesperson, Lulzim Krasniqi, stated that as of August 16, around 90% of some 1,400 designated business electricity meters had been disconnected from the grid, while the remaining companies would be cut off in the coming days unless they reached an agreement with a supplier, the media in Kosovo* reported.

KEDS has disconnected over 1,400 electric meters at firms without a licensed supplier

The move comes after the appeals chamber of the Commercial Court ruled against postponing electricity market liberalization for businesses with more than 50 employees and an annual turnover exceeding EUR 10 million. Previously, the Commercial Court had granted a request by some companies to delay their obligation to purchase electricity on the free market, a decision that was interpreted as overturning the entire market liberalization process.

The decision to liberalize the electricity market in Kosovo*, which stripped large companies of the right to regulated prices, officially took effect on June 1.

The Kosovo Chamber of Commerce (KCC or OEK), which opposes the adopted liberalization model, claims the entire process is riddled with legal and procedural irregularities and urges the Government of Kosovo* and the Energy Regulatory Office (ERO) to immediately suspend its implementation and launch a transparent review. The chamber also stated that, if necessary, it would take the case to the Supreme Court and the Constitutional Court.

The Kosovo Chamber of Commerce has warned of severe economic consequences

The KCC warns that the model chosen by the ERO will have severe consequences for the economy, including a significant increase in the price of electricity and other products, a potential loss of 22,000 jobs, a decline in domestic production and increased imports, as well as the closure of a large number of businesses.

The chamber had earlier demanded that businesses be allowed a fair transitional period in the electricity market liberalization process.