Announcement on publication of the Report on Evaluation of Competition in the Electricity Market in Kosovo for the years 2018-2019
The Board of Energy Regulatory Office (ERO), in the session held on 10 December 2020, has approved the Report on Evaluation of Competition in Electricity Market in Kosovo for the years 2018-2019.
From the findings presented in the report and the results obtained from the survey conducted with licensed suppliers in Kosovo, as well as based on the results obtained from the Market Concentration Measurement Index (HHI), the Report concludes that the concentration in the wholesale and retail electricity market is very high, which means that the energy market in the country was facing a lack of competition during the analysed period.
The report also came out with four recommendations that need to be further addressed which are related to legal responsibilities between the Energy Regulator and the Kosovo Competition Authority (KCA):
- Cooperation between ERO and KCA to start the investigation related to the compliance with the procedure for energy trading by market participants related to electricity trading;
- Given that the Bulk Supply Agreement (BSA) may have an impact on competition, and according to this agreement ERO is not the competent authority for competition, KCA should initiate an investigation related to the impact of BSA on the electricity market in the country;
- Intensify the departure of customers from the supply at regulated tariffs according to the Guideline on Liberalization of the Electricity Market;
- Continue with the development of the Electricity Price Comparison Tool which is considered as a reliable source to compare the prices that will be offered by electricity suppliers.
In line with the foreseen procedures, on 27 August, the Report was initially sent for further commenting to the KCA and the State Aid Office. Then, on 21 October, the document was published for public consultation, where interested parties could comment until 6 November 2020. Following the receipt of the comments of the parties (KCA and KESCO) the final version of this document was prepared, which was approved by the Board of ERO in the Xth session held on 10 December 2020.
All interested parties can access the Report on Evaluation of Competition through ERO’s website: Evaluation of Competition in Electricity Market in Kosovo / 2018-2019.