KAMA: Increasing energy tariffs endangers the textile and clothing industry in Kosovo

The Kosovo Apparel Marketing Association (KAMA) expresses its concern regarding the decision of the Energy Regulatory Office to increase electricity tariffs and to force large industrial consumers to switch to the liberalized market as of June 1, 2025.

This decision is expected to have a severe impact on the textile and clothing sector – one of the largest contributors to employment, exports and local economic development in Kosovo. The sudden increase in energy costs, combined with the very short transition period foreseen for the transition to the liberalized market, puts the industry in a difficult position to adapt and maintain existing production and employment capacities.

One of the largest foreign-owned factories in the sector has warned that dozens of workers will be laid off as a result of this new financial burden. With the new tariffs, the monthly cost of energy will increase to unaffordable levels, exceeding current expenses many times over and making regular operation impossible. This is not an isolated case – similar situations may occur in other companies that will not be able to cope with the financial impact of this decision.

This situation is also affecting the confidence of existing investors and damaging the climate for new investments in the country. The lack of predictability, high costs and a one-sided approach to decision-making are making it increasingly difficult to maintain stability in the manufacturing sector.

The KAMA Association calls for an immediate review of the decision and for the establishment of a direct dialogue between institutions and industry representatives, with the aim of finding a solution that preserves the functioning of strategic sectors without exposing them to the risk of collapse. KAMA emphasizes that the current deadlines foreseen for this change are insufficient for a sustainable adaptation of the industry and requires a gradual, agreed and supported approach.

We are ready to offer our contribution – through impact analyses, technical recommendations and cooperation with institutions – in order to guarantee a just and affordable transition for productive sectors.

Our industry does not require special treatment, but requires equal conditions and real time to adapt. If not acted with care and cooperation, the losses will be incalculable for the country's economy. /Telegraph/