The Kosovo Chamber of Commerce (OEK) has reached out to the Ombudsperson institution, requesting that a case be initiated at the Constitutional Court to suspend for one year the decision that forces businesses to transition to the open energy market, reports RFE.
The Energy Regulatory Office (ZRRE) has mandated that from June 1st, all companies with more than 50 employees or an annual turnover exceeding €10 million must move to the open energy market.
In its appeal to the Ombudsperson, the OEK argued that such a transition could have significant negative effects on businesses, particularly on their cost of production or services. According to OEK, this move could directly impact business competitiveness both domestically and internationally, leading to a reduction in the standard of living for citizens.
OEK’s Request for a One-Year Suspension
The Kosovo Chamber of Commerce outlined several reasons for requesting the one-year suspension. They emphasized that businesses are not prepared for this immediate transition and need more time to adjust to the free-market model. Specifically, OEK pointed out that small businesses would be disproportionately impacted by this change, which would harm market competition.
The OEK stressed that a gradual transition would allow companies to adjust their strategies and avoid sudden financial shocks. They also argued against setting a specific employee number or turnover threshold as criteria for the move to the open market, suggesting it would further disadvantage smaller companies.
The Energy Market Transition and Its Impact on Businesses
Under Kosovo’s Electricity Law, companies transitioning to the open market would need to select their own electricity supplier. According to ZRRE, businesses entering the liberalized market can choose any licensed domestic supplier or foreign companies.
KESCO, the main licensed supplier in Kosovo, sets the prices for its electricity products, though 18 other licensed companies also offer this service. However, companies over the threshold will no longer be eligible for regulated prices from June 1st and will instead be subject to unregulated market prices determined by supply and demand.
OEK’s Call for a Transition Period
The Chamber of Commerce urged ZRRE to reconsider the timing of the transition and extend the deadline for at least a year. A longer transition period would allow companies to adjust their strategies to avoid financial instability.
As Kosovo approaches the shift toward an open energy market, concerns about the financial sustainability of businesses remain at the forefront, with many questioning whether this change could disproportionately impact small businesses and lead to higher costs for consumers.
