Three subsidiaries of Elektroprivreda Srbije (EPS) – the state-owned Serbian energy company – registered with addresses in Kosovo, reportedly carry debts exceeding €580 million.
The companies in question – Termocentralet e Kosovës, Minierat Sipërfaqësore të Kosovës, and Elektrokosmet – are listed among the 100 biggest loss-making enterprises in Serbia, according to financial reports analyzed by Radio Free Europe (RFE).
Despite losing operational control over Kosovo’s energy assets 25 years ago, these firms, employing over 3,100 people, continue to operate from Belgrade, while Kosovo-based companies manage actual electricity production and distribution.
Operations Despite Lack of Presence in Kosovo
EPS maintains these subsidiaries’ fictitious Kosovo addresses, continuing financial transfers to cover salaries and operational expenses.
In 2024 alone, EPS spent €54.7 million on employee salaries for these companies. Additional funds were allocated for equipment, vehicles, fuel, tools, construction materials, and IT infrastructure.
According to experts, such arrangements represent “pure spending” without real contribution to electricity production or distribution in Kosovo.
Tendering Practices and Alleged Corruption Risks
Despite reporting annual losses, these subsidiaries award tenders and contracts – often to single bidders, which raises concerns over transparency and potential corruption.
In 2025, they signed over 80 contracts worth more than €5 million, covering services from vehicle maintenance to fuel supply and IT services.
Company-Specific Insights
- Termocentralet e Kosovës: Over 770 employees, mainly performing maintenance work for EPS operations in Serbia. 2024 transfers from EPS totaled €16.2 million, but the company continues to post losses exceeding €355 million.
- Minierat Sipërfaqësore të Kosovës: Employs 1,900 people. In 2024, EPS transferred over €50 million for salaries and operational costs. The company posted a €1.4 million profit, but cumulative losses remain at €111 million.
- Elektrokosmet: Employs 441 staff, largely performing auxiliary services for EPS in Belgrade and Niš. In 2024, the company reported a €12.4 million loss, with total accumulated losses exceeding €115.5 million.
Fictitious Kosovo Addresses
EPS subsidiaries list addresses in Kosovo cities such as Prishtina, Mitrovica, Gjakova, Prizren, Gjilan, Pejë, and Ferizaj. However, no actual operations occur there, and these locations are largely administrative or “on paper” only.
Calls for Reform
EPS remains Serbia’s largest state-owned company, with annual revenue exceeding €200 million, but cumulative losses from previous years total €2.4 billion, making it the largest loss-making company in Serbia.
The International Monetary Fund (IMF) has urged reform to increase efficiency and transparency, and EPS reports ongoing efforts with international and local consultants. However, no response has been provided regarding reforms for the Kosovo-registered subsidiaries.
