The Kosovo Business Association has reacted strongly to the decision of the Energy Regulatory Office (ERO) to increase electricity prices by 15%, calling it an irresponsible decision with severe consequences for both the economy and citizens.
According to the Business Association, this decision will have a direct and dangerous impact on the entire economic chain in Kosovo.
The full statement from the Kosovo Business Association outlines the following concerns:
- Increased Production Costs: Businesses reliant on electricity will face immediate increases in operating costs, making their products more expensive.
- Price Increases in Goods and Services: As businesses cannot absorb all the extra costs themselves, they will pass these costs on to consumers through higher prices for goods and services.
- Higher Costs for Basic Products: Basic products such as bread, flour, oil, sugar, and milk, as well as transport services, will become more expensive, impacting low-income families most severely.
- Decreased Purchasing Power and Living Standards: With higher living costs, citizens will have less disposable income, reducing consumption and negatively impacting the internal economy.
- Job Losses: Businesses unable to absorb the cost increases will be forced to cut jobs, leading to higher unemployment and economic insecurity.
Additionally, the liberalization of the energy market creates further challenges for businesses. From June 2025, around 1,000 large companies will no longer be able to purchase electricity from KESCO but will be forced to buy it on the open market, which could lead to higher prices and instability in energy supply.
The Business Association also warns that the decision benefits energy traders and risks creating monopolistic conditions that would harm businesses and consumers.
The association urged the government and ERO to immediately suspend the decision, reconsider other options to stabilize the energy sector, and delay market liberalization for at least two years to allow for greater transparency and more stable supply options.
Failure to address these issues could lead to a broader economic and energy crisis, with businesses potentially leaving Kosovo due to unsustainable operating conditions.
