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Kosovo’s decision to liberalize its electricity market threatens to spark a new crisis, as business consumers face significantly higher prices compared to the current, regulated rates. As a warning, disgruntled business owners plan to block the main roads leading into the capital, Prishtina, for two hours on Thursday, May 29.
Starting on June 1, businesses with an annual turnover of over EUR 10 million will be required to buy electricity on the open market, losing the right to regulated prices. Kosovo’s electricity market is the only one in the region that has not yet been opened to competition, and the decision to do so has been postponed several times since 2017.
The Kosovo Chamber of Commerce (KCC) said last week that out of 19 power companies licensed to supply electricity, only KESCO had made an offer to customers, at a price many times higher than the current rate, according to Kosovapress.
AmCham: Businesses are facing electricity price hikes of over 200%
The American Chamber of Commerce in Kosovo* has also expressed its deep concern regarding the significant risks that the liberalization, in its current form, poses to economic activity, employment, and long-term competitiveness of Kosovo*. It warned that businesses are exposed to electricity price increases of over 200%
The protest planned for tomorrow follows a series of meetings and numerous attempts to delay the latest decision on market liberalization. The KCC has said the business community wants the government to enable a fair and manageable transition phase, warning the protests will continue until the demands are met.
Businesses want a transition phase to enable a fair integration into the free market
The transition phase would allow for the gradual preparation of businesses for a sustainable and fair integration into the free energy market, the KCC said in a press release.
“If institutions do not reflect and do not take concrete steps to address the demands of businesses, the protests will continue until they are met,” it added.
The KCC also claims that the Energy Regulatory Office’s (ERO) decision to liberalize the market was made without proper analysis or consultation with stakeholders. It also said it would launch a “legal battle” to challenge the decision.
* 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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