Jeton Mehmeti, former chairman of KOSTT, has stated that the recent increase in electricity prices could potentially be reversed.
He noted that while he is not sure about the legal grounds for such a reversal, he believes the decision should indeed be annulled.
“I think this decision is essentially a done deal. Can it be reversed? Of course it can. But why hasn’t it been reversed? Because there are two decisions involved, two directions: in one decision, businesses were moved to the free market—this is the tariff decision. When the tariff review was conducted and the decision was made, businesses were also shifted to the free market. So, the tariff decision must be annulled. Whether or not there is a legal basis for this, I do not know. Is it necessary to liberalize the market? Yes, it should be liberalized. Even businesses agree that the market should be liberalized. But what does a free market mean? Right now, it means something very different from the rest of the region. The agreement between KEK and KESCO/KEDS makes the market unattractive for both citizens and businesses, because the price in that agreement is significantly lower than the market rate,” said Jeton Mehmeti in an interview with Klan Kosova.
He further explained why electricity prices increase and who initiates such requests.
“The request for a price hike comes from operators like KOSTT, KESCO, KEDS, KEK, and other regulated operators, who submit their tariff proposals to the Energy Regulatory Office (ZRRE), which is obligated to review and recognize the tariffs. What does recognizing tariffs mean? It means recognizing expenses. Each company plans investments, and these investment plans are submitted to ZRRE for approval. The approval of these investments implies higher tariffs for citizens and businesses,” Mehmeti explained.
He also criticized the regulatory process for not being properly planned.
“These things must be foreseen and forecasted. Tariff reviews are done a year in arrears, not in advance. That means companies receive funding a year later. They operate throughout the year, and only in the following year do they receive the funds from collected tariffs. ZRRE has always known that prices are rising, that tariffs are increasing. The reasons behind the increase are another issue, but at the very least, they should have been better prepared—there should have been a public awareness campaign to inform consumers,” he concluded.
