The Kosovo Business Alliance (KBA), representing the local business community, has opposed the electricity price hike following the recent announcement from the Energy Regulatory Office (ERO) about a 15% increase in electricity tariffs.
“This proposal is unacceptable and economically harmful, considering the already difficult economic situation in the country and the impact it will have on businesses, local production, and citizens’ welfare.”
The electricity price increase, at this sensitive time for Kosovo’s economy, is seen by the KBA as an additional burden on the private sector and all consumers. This decision is expected to directly impact the rise in the cost of living, reduce citizens’ purchasing power, and shrink local economic activity.
Citing recent data from the Kosovo Agency of Statistics, the Business Association has shared the following statistics for February 2025 compared to February 2024:
- Exports have decreased by -8.9%.
- Imports have increased by +12.7%.
“This imbalance clearly shows the worsening of the trade balance and the weakening of the local production sector, which is already facing multiple challenges such as lack of support, high costs of raw materials and labor, and now, the increase in energy prices.”
The KBA states that the increase in electricity tariffs is expected to negatively impact:
- Increased production costs for local businesses.
- Reduced competitiveness of our products in the local and international markets.
- Increased prices for end consumers.
- Decreased new investments and the withdrawal of potential investors.
- Increased unemployment due to difficulties in the private sector.
Moreover, this decision will directly affect the welfare of citizens, who are already facing high living costs and continuous price increases in essential sectors.
The KBA urgently requests that the ERO:
- Immediately withdraw this proposal for tariff increases.
- Conduct open and inclusive consultations with the business community and other stakeholders to identify solutions that do not harm the local economy.
- Consider the economic and social impact this decision will have on the private sector, consumers, and the overall economy of the country.
“Kosovo needs policies that promote economic development, strengthen local production, and protect citizens’ welfare, not measures that further burden the economic situation.”
