Illustration: BIRN

Kosovar Energy Companies Fined Millions for Violations During the Energy Crisis

The companies for distribution and the supply of electricity in Kosovo have been fined millions of euros by the Energy Regulatory Office as a result of several violations during the energy crisis in 2021.

Energy Regulatory Office, ERO, on Wednesday decided to impose a fine of 8.4 million euros on the Kosovo Electricity Supply Company, KESCO, and 2.7 million euros on the Kosovo Electricity Distribution Services, KEDS, after a monitoring report of these two companies stated that KESCO had endangered the supply of electricity for consumers in Kosovo, while KEDS had not procured electricity to cover losses as provided by legal provisions.

The chairman of the ERO board, Ymer Fejzullahu, in an answer to BIRN, said that the fines are intended to ‘discipline’ these two companies.

“We have completed a monitoring process and based on that monitoring in accordance with the findings, the board of ERO has made a decision on the administrative measure – fines. The purpose of this measure is not to have punishment in relation to KEDS and KESCO, but the purpose is to discipline these two licensees because during the period of the energy crisis, several violations were identified” – said Fejzullahu.

He emphasized that the monitoring of KEDS and KESCO was for the year 2021 with a focus on the energy crisis period.

According to the monitoring report, KESCO has acted in violation of the license conditions, by cross-subsidizing the account of unregulated consumers from the accounts of regulated consumers that enjoy universal access to energy, as well as several other violations.

Meanwhile, KEDS has not procured electricity to cover losses as provided by legal provisions and has not exercised the responsibilities given under the legislation to provide electricity to cover losses in the distribution network and support services.

According to the decision, KESCO and KEDS must pay the fines within two years in four installments.

KEDS and KESCO have considered those fines imposed on them as unfair.

Through a press release, KEDS/KESCO on Wednesday declared that with the fine of 8.4 and 2.7 million euros for these two companies that operate together, the energy sustainability of Kosovo will be endangered during winter.

KEDS and KESCO have blamed ERO for not acting in time when the electricity crisis began.

“The only action to overcome the energy crisis is the decision to fine  KEDS/KESCO operators, deepening and jeopardizing the stability of the electric power system in the difficult winter period ahead of us. The Board of the Energy Regulatory Office has left the electricity sector “at the mercy of fate” – it was stated  in the reaction.

According to them, in July 2021 when the first signals of the energy crisis were given, ERO did not take any measures to prevent the crisis.

Furthermore, KEDS and KESCO have warned that they will pursue all legal avenues regarding the ERO fines, while claiming that the energy crisis was caused beyond the control of the operators, and that according to them, it is the operators who have suffered the consequences of the inaction of the relevant institutions in time.

17/11/2022 - 15:40

17 November 2022 - 15:40

Prishtina Insight is a digital and print magazine published by BIRN Kosovo, an independent, non-governmental organisation. To find out more about the organization please visit the official website. Copyright © 2016 BIRN Kosovo.