Against the newest tendency of ERO to double the energy price for consumers

21 February 2019 - Institute for Development Policy (INDEP) and Balkan Green Foundation (BGF) oppose the document "Establishing a Public Service Obligation on Security of Supply" by the Energy Regulatory Office (ERO). This initiative is in violation of the constitutional role of ERO, in violation of local and European laws and aims to legitimize the destructive contract for the construction of the new power plant "Kosova e Re".

On February 6th, the Energy Regulatory Office has put into public discussion the scandalous document "Establishing a Public Service Obligation on Security of Supply". Through it, ERO intends to push forward the construction of the "New Kosovo" power plant by putting the financial burden directly on the backs of the consumers. In an unprecedented act, ERO has decided to impose a "security of supply fee" that will be paid by all licensed suppliers to the NewCo (NKEC). This tax will be paid by the citizens of Kosovo through doubled electricity prices.

ERO has no mandate to find modalities to accommodate harmful contracts signed by the Government of Kosovo. As an institution not subject to the Government of Kosovo, ERO has in its mandate the preservation of public interest by guaranteeing the functioning of a free market, and ensure free competition, and so lay the foundations for an integrated regional market. All of these will be violated if ERO decides to put itself into service of this scandalous contract, which is in full opposition to the spirit of the third European energy legislation package.

The security of supply is a right that the citizens of Kosovo should not be taxed for. Electricity is a basic product and its provision to the citizens should not be subject to taxation, so as to guarantee the profits of a sabotaging enterprise that will distort the free and integrated energy market. The designation of the security of supply based on an isolating contract for Kosovo does not guarantee anything other than unbearable prices and a deepening energy poverty for Kosovo's citizens.

Security of supply should have been guaranteed by the privatization of the distribution network. In the reasoning of the privatization process, the Kosovo Government had mentioned ten times that privatization of the distribution network was necessary to guarantee the security of supply. Now, with this document, ERO is declaring that for security of supply, citizens have to pay billions of Euros from their pockets once again!

INDEP and BGF call on the Energy Regulatory Office's board not to approve this document and to give up on efforts to implement the isolating contract for Kosovo's energy market. Moreover, we invite the Assembly of Kosovo, respectively the Parliamentary Committee for Economic Development, Infrastructure, Trade, Industry and Regional Development to call an immediate hearing to discuss this situation. We have compiled an analysis with detailed comments about the ERO's document. This analysis has been sent to the Energy Regulatory Office and will also be delivered to the Assembly of Kosovo.

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