Electricity prices in Kosovo are being asked to increase by around 35 percent

Energy sector companies in Kosovo have requested from the Energy Regulatory Office (ERO) to allow them to increase their maximum allowed revenues for 2025 by around 145 million euros more compared to 2024. 

From around 400 million euros as the maximum revenues allowed for 2024, in 2025 the maximum revenues are requested to be around 545 million euros. So, in total, an increase in revenues of around 35% is requested, an increase that if approved will then translate into an increase in the price of electricity.

These are approximate figures, as the exact amount of revenue required will only be known after the Energy Regulatory Office publishes the consultative report, in which any improvements to the requests submitted by the companies (KESCO, KEDS and KOSTT) are made, including the costs covered by ElektroSeveri for the northern part.

The Energy Regulatory Office has not yet published the requests it has received from KEDS, KESCO and KOSTT for maximum revenues for 2025.

KALLXO has requested information from ERO, KESCO, KEDS and KOSTT regarding the requests made for Maximum Revenues for 2025, but none of these institutions have responded to the questions. However, the medium has not been able to obtain some data from the applications made by the regulated companies for the maximum allowed revenues for 2025.

At the beginning of each year, the Electricity Supply Company (KESCO); the System, Transmission and Market Operator (KOSTT) and the Distribution System Operator (KEDS) submit to ERO their requests for Maximum Allowed Revenues. These requests for 2025 revenues have already been submitted to ERO, but the latter has not yet made them public.

Based on practice, the Energy Regulatory Office does not accept all of the companies' requests for expenses that they have requested (see here the processes of reviewing electricity tariffs).

The Energy Regulatory Office initially determines the Maximum Allowed Revenues for KESCO, KEDS and KOSTT, and then sets electricity tariffs, which guarantee that KESCO will collect the allowed revenues for the energy sector. The new electricity tariffs will enter into force on 01.04.2025.

What are the requirements of KESCO, KEDS and KOSTT?

As it is learned, KESCO, which supplies electricity, has requested from ERO to allow it revenues of around 2025 million euros in 440. The 2025 request is around 40 million euros more than the revenues approved by ERO for KESCO in 2024, which were 399.6 million euros. KESCO has not included in their application the requests of KEDS and KOSTT for increased revenues.

KEDS has requested from ERO that the maximum revenues for 2025 be approximately 205 million euros. The request for the maximum allowed revenues for 2025 is approximately 85 million euros more than the revenues approved in 2024 for KEDS, which were 120.5 million euros.

These revenue increases are justified by the need for additional electricity imports during 2024, but also personnel expenses and loss costs.

Meanwhile, the System, Transmission and Market Operator (KOSTT) has requested that the maximum allowed revenues for 2025 be around 100 million euros, or around 20 million euros more than the revenues approved by ERO in 2024, which were 78.7 million euros.

Due to the energy crisis in 2022 and the increase in the price of imported electricity, ERO had reinstated the block tariff and increased the price of electricity. The increase in the price of electricity had mainly affected those who consumed more than 800 kilowatts.

In 2023, the price of electricity increased again, as ERO decided that electricity tariffs would be 15% higher.

Whereas, in 2024, according to decision of the Energy Regulatory Office dated 02.04.2024, businesses have had a 3% reduction in electricity tariffs until the approval of new tariffs in 2025.

There was also an 8% reduction in tariffs for household consumers who consume over 800 kW/h, but not for consumers who consume less than 800 kW/h.call/