The price of electricity will increase by 92% if TPP 'Kosova e Re' is constructed

Pristina, April 23, 2019 - Balkan Green Foundation (BGF), GAP Institute, the Legal and Political Studies Group (GLPS) and the Institute for Development Policy (INDEP) have raised concerns over the impact on electricity bill prices if 'Kosova e Re' power plant project is implemented, which will make the citizens' affordability for electricity much more difficult.

At present, for family consumers (households), the high tariff (day) is 6.75 cents/kWh, while the low tariff (night) is 2.89 cents/kWh. The average of these two tariffs is 4.82 cents/kWh. However, one should not overlook the fact that most of Kosovo's electricity is spent during the day, during the high tariff. Therefore, a reasonable and comparable average that includes and gives importance to spending during the day should be somewhere in the value of 6 cents/kWh. [1]

According to Eurostat, the average consumption of a Kosovar family falls somewhere between 2500-5000 kWh per year or 312.5 kWh per month. To translate this into a monthly bill, the value of the monthly average of consumption with the average price value should be multiplied. After this calculation, it is estimated that a Kosovar family pays an average of 18.75 euros per month for electricity. Normally, this amount is modest as it does not take into account the use of ineffective equipment as well as summer-winter variations when electricity demand is greater due to cooling or heating equipment.

The average price of 6 cents/kWh varies when the New Kosova Power Plant is put into play. This is because TC Kosova e Re will only produce electricity with the highest price (8 cents/kWh) than the total current price (6 cents/kWh) for electricity. When calculating the production price from TPP Kosova e Re (8 cents/kWh), electricity transmission via KOSTT (0.3 cents/kWh), KEDS acquisition and KESCO sales (3.2 cents/kWh) comes out of the final price for household customers to be somewhere 11.5 cents/kWh.

Therefore, if a Kosovo family has paid 18.75 euros per month for electricity, it is likely that the same family will have to pay 35.94 euros per month or 92% more expensive electricity bill for the same amount of energy electricity consumed (this is if TPP Kosova e Re is constructed).

Balkan Green Foundation (BGF), GAP Institute, the Legal and Political Studies Group (GLPS) and the Institute for Development Policy (INDEP) require the immediate withdrawal of Kosovo from the contract for the construction of this power plant. This project will bankrupt Kosovo economically, will prevent the liberalization and integration of the electricity market, and represents a decisive blow to the environment, health and human rights. By disrupting this harmful project, Kosovo has the potential to build a European future through energy transition towards renewable sources, energy efficiency and an integrated and liberal market in function of affordability of prices and consumer protection.

Find here the next infographic published by Balkan Green Foundation (BGF), GAP Institute, the Group of Legal and Political Studies (GLPS) and the Institute for Development Policy (INDEP).

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[1] According to the Energy Regulatory Office (ERO), the average electricity price for family consumers (households) for the last ten years was 5.32 cents/kWh (excluding VAT). Statistically, it is ethical that the average price of 6 cents/kWh is taken as representative value when talking about family consumers (households).

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