ERO proposes to increase electricity prices by about 15 percent

The Electricity Regulatory Office of Kosovo (ERO) announced on Friday that it has proposed increasing the price of electricity in the country by about 15 percent next month.

The news was announced on Friday through the publication of the consultative report on maximum allowed revenues, which foresees an increase in electricity tariffs.

According to the ERO announcement, the publication of the report provides an opportunity for interested parties to review and provide comments on the proposed tariff increase. The deadline for submitting comments is March 28.

ERO conducts the annual review and setting of electricity tariffs, which are announced every April 1 and are valid until March 31 of the following year.

This increase comes after the requests of three energy sector companies in Kosovo – KOST, KEDS and KESCO – which say that the need for electricity price increases is related to the high costs of importing electricity.

"The Consultation Reports present ERO's initial proposals for the maximum revenues allowed for these enterprises. This public consultation provides the opportunity for all interested parties to review the proposals and provide comments and suggestions that may influence the determination of final tariff decisions." Based on the results of these reports, it is expected that the average tariff increase for consumers will be around 15%," the announcement states.

Weeks ago, three energy sector companies in Kosovo asked the energy regulator to increase the price of electricity tariffs.

The System, Transmission and Market Operator [KOST], the Kosovo Electricity Distribution Company [KEDS] and the Kosovo Electricity Supply Company [KESCO] requested an increase in electricity tariffs due to the import of electricity.

Last year, ERO reduced the price for commercial and industrial customers by 3 percent.

But, a year earlier, in 2023, tariffs increased by 15 percent for all categories of consumers.

Currently, for consumers who consume up to 800 kilowatt hours per month, the price of electricity during the day is 7.79 cents per kilowatt, while for those who consume more than 800 kilowatts, the portion above this is calculated at a price of 14.45 cents.

Read too Energy companies submit a request to ERO for an increase in the price of electricity in Kosovo

From 22:00 PM to 7:00 AM, the price per kilowatt is 3.34 cents for those who spend up to 800 kilowatts and 6.81 cents for those who spend more.

In early March, former Minister of Energy, Ethem Çeku, warned Radio Free Europe that the increase in the price of electricity was inevitable.

In the interview with REL, he said that to reduce the amount of imports, Kosovo needs to increase domestic production, especially through alternative energy.

Kosovo cannot meet the needs of its over 1.6 million inhabitants with electricity, so it imports from foreign exchanges.

The country has the capacity to produce about 800 megawatts of electricity per hour, while its needs, on winter days, reach up to 1.300 megawatts per hour.

One of the reasons for underproduction is the decades-old age of the Kosovo A and Kosovo B power plants.

Currently, over 20 percent of electricity in Kosovo is produced by alternative sources, such as: hydropower plants, wind power plants and solar panels.

Kosovo authorities have previously said that the goal is that after 2031, 35 percent of electricity will be generated from these sources.

Kosovo's Energy Strategy 2022-2031 focuses on investments in renewable energy, but part of it also includes the Kosovo A Power Plant, namely investments in at least one of its units or blocks. /Telegraph/