Kosovo’s Energy Regulatory Office (ERO) has announced that starting June 1, 2025, large businesses—defined as those with over 50 employees or an annual turnover above €10 million—must enter the liberalized electricity market. This move has triggered strong opposition from Kosovo’s business community, which warns of serious financial risks and potential protests.
Businesses Demand Delay or Subsidies
In a joint press conference, business leaders called for the postponement or complete repeal of ERO’s decision, arguing that the market is unprepared and that energy costs could increase by 200–300%.
Lulzim Rafuna, President of the Kosovo Chamber of Commerce, requested a €50 million government subsidy and a one-year delay, warning that without action, “protests are inevitable.”
Skënder Krasniqi, head of the Kosovo Chamber of Commerce, said the decision was “illogical and rushed,” citing only a two-month notice before implementation and a lack of market readiness.
Supply Options Are Limited, Prices Skyrocket
Currently, only KEDS/KESCO has submitted a price offer, with terms that include upfront payment for two months’ worth of energy. Out of 19 licensed energy suppliers, none besides KESCO have made active bids, raising concerns about genuine competition.
Ilir Ibrahimi of the Business Club emphasized that businesses were “left without proper information or time to prepare.”
Kushtrim Ajvazi, from the Association of Kosovo Producers, demanded two things:
- Postpone enforcement by at least one year, and
- Subsidize additional energy costs for domestic producers, who he called “the heart of the economy.”
American Chamber and Companies Echo Concerns
The American Chamber of Commerce in Kosovo stated the country is not ready for this transition. They criticized the lack of competitive suppliers, poor communication, and unrealistic price hikes, warning of a chain reaction of financial instability that could affect manufacturing, services, technology, and investment.
Sadik Krasniqi, a business owner, said communication consisted only of a vague email: “No guarantees, no education, no support.“
Mergim Prishtina, CEO of a pharmaceutical firm, said, “Local energy producers like KEK must be liberalized too—it can’t just be the buyers exposed to the open market.”
Context and Legal Background
Kosovo’s Law on Electricity, adopted in 2017, called for gradual energy market liberalization, which was delayed until now. ERO’s new decision means over 1,300 companies will need to find their own energy supplier from June 1, paying unregulated market-based prices.
Although 18 suppliers are licensed, very few are actively participating, creating a quasi-monopoly environment rather than a free market.
The liberalization model follows the EU, which began this process in the late 1990s. But unlike neighboring countries, Kosovo lacks natural gas infrastructure, making its economy fully dependent on electricity.
Conclusion
With the June 1 deadline fast approaching, Kosovo’s leading businesses are pressuring the government to intervene. They are demanding either a one-year delay, subsidies, or the full repeal of the ERO decision. Without action, Kosovo risks widespread protests and economic disruption.
