Business crisis in Kosovo - Liberalization of the energy market has increased prices and reduced capacities
The process of liberalizing the energy market in Kosovo has hit manufacturing businesses hard, significantly increasing costs and limiting their opportunities for expansion and employment.
As of June 1, by decision of the Energy Regulatory Office (ERO), the largest businesses in Kosovo, with over 50 employees and an annual turnover of over 10 million euros, have moved to the open energy market. This means that these businesses are no longer supplied with regulated tariffs, but purchase energy according to offers from private companies, licensed for trading.
According to ERO, around 1,300 businesses are involved in this process, consuming 37% of total energy. This number is based on data from 2024, while this year's data shows a different situation. According to the Kosovo Tax Administration, in September, the number of companies with more than 50 employees and a turnover of over 10 million euros was 976.
The Kosovo Producers Association says that these companies previously paid around 75 euros per megawatt, while now the price has gone up to 190 euros per megawatt, including additional fees. The price varies depending on expenses, the level of the line voltage and the energy exchange.
According to the Producers Association, out of 300 companies that have entered the open energy market, only 60 have been able to secure fixed-price contracts by the end of winter. All these problems stem from the fact that the energy liberalization process has not been properly prepared, business representatives say. For this reason, the Kosovo Chamber of Commerce also filed a lawsuit with the Supreme Court against the Energy Regulatory Office.
The association has asked the government to postpone the implementation of the decision for companies to go public and to support businesses in securing property for joint investments in solar energy.
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