The Alliance of Kosovar Businesses, AKB, has warned that hundreds of companies face severe operational and financial strain due to being disconnected from the power grid. The AKB also claims that the country’s new energy market rules are forcing both local and foreign investors to consider relocating from Kosovo.

At a press conference on Monday, AKB President Agim Shahini said the business sector is facing an unprecedented crisis.

“We are sounding the alarm: Over 200 companies, with  nearly 10,000 workers, have had their electricity forcibly cut off by KEDS, the Electricity Distribution Company. Currently, 100 businesses remain without power. This has caused  millions in material damages and severely tarnished Kosovo’s image as a destination for investment,” Shahini stated.

He called for an immediate halt to the disconnection campaign and urged the government to, “open a transparent and inclusive dialogue with the business community.”

Local manufacturers echoed these concerns. Ahmet Kuçi, head of the Suhareka based footwear company ‘Solid,’ said his company is already preparing to relocate their operations.

“We’ve opened a facility in Tirana. If the situation doesn’t improve soon, we’re moving to [the Albanian town of] Kukës,” Kuçi said.

Lumnije Hajdini, AKB’s Managing Director, revealed that a foreign textile investor who has already invested 20 million euros in the Kosovan economy is preparing to lay off 70 employees and may exit Kosovo entirely.

“These are investors we struggled to attract. Now, because of the energy market rules, they’re leaving,” Hajdini warned.

The crisis derives from the implementation of Kosovo’s new energy market liberalisation policy. Under a directive issued in April 2025 and effective from June 1, all businesses with over 50 employees or an annual turnover exceeding 10 million euro are required to purchase electricity on the open market. These companies are no longer eligible for regulated tariffs.

Firms that fail to sign a contract with a licensed supplier are temporarily assigned to the Supplier of Last Resort—currently the Kosovo Energy Corporation, KEK—which charges significantly higher, unregulated rates. Continued failure to contract a supplier results in disconnection from the grid.

From June 1 to July 31, many affected businesses were being served by KEC as the Supplier of Last Resort, but that temporary arrangement has now ended for those who have not secured contracts with market suppliers.

KEDS announced over the weekend that it had begun disconnecting around 450 businesses for failing to comply. This follows a prior warning issued by the Energy Regulatory Office on August 13.

Although 21 licensed electricity suppliers are registered in Kosovo, many businesses claim there is little real competition.