As of June 1st, businesses with more than 50 employees have entered the open electricity market. This means they are expected to pay significantly higher energy costs this month. In response, over 1,300 businesses protested for the second time on Wednesday to oppose the decision by the Energy Regulatory Office (ERO).
Dire Consequences for Businesses and Economy
According to the Chamber of Commerce and Industry, this decision will have major consequences for businesses and the country’s economy. “We already have the first cases of businesses that have simply shut down completely, sending employees home. We have businesses that have planned to terminate contracts with 200 farmers, from whom they used to collect milk for dairy product production. Others are waiting to see how the cost of electricity payment will reflect, as no price is being offered by any party,” said Kushtrim Ahmeti.
Lack of Market Conditions for Liberalization
According to the head of the Kosovo Business Alliance, there are no conditions for electricity market liberalization in the country. This is because, he states, currently only one operator can offer electricity to companies.
“When we talk about an open market, a free market, everyone thinks it’s a good opportunity to supply electricity cheaper. It’s the opposite, as the offers are still from a single economic operator, and they are around 250-300% more expensive than the current prices,” said Agim Shahini.
On Wednesday, businesses demanded that ERO suspend the decision within 10 days and that the liberalization of the electricity market be implemented transitionally after one year.
