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Decision/ Supreme Court of Kosovo declares 'free electricity market' illegal
2025-11-17 13:10:06 / KOSOVA
The Supreme Court of Kosovo has repealed two articles of the guidelines for the liberalization of the energy market, saying they have created legal and economic uncertainty for electricity consumers in the country.
In a press release, the court announced that it accepted the lawsuit of the Kosovo Chamber of Commerce against the Energy Regulatory Office (ERO), which in June ordered large businesses to enter the free energy market.
The court declared illegal and repealed Article 8 of the guideline for the liberalization of the electricity market from January 2017, and Article 2 of the guideline amending and supplementing this guideline.
She said she found that "the inconsistencies between the legal provisions and the provisions of the normative sub-legal acts have contributed to the creation of a situation of legal and economic uncertainty for electricity consumers, making the intervention of the court necessary."
The Supreme Court concluded that the boundary between consumers who enjoy the right to universal supply and those who are forced to switch to the free market has not been clearly and predictably defined.
It also found that some provisions of ERO's guidelines were not in line with the Kosovo electricity law, and European Union energy directives.
The energy regulator's June decision forced all large businesses in the country - with over 50 employees and annual turnover over 10 million euros - to enter the free energy market.
This means that these businesses are no longer supplied with regulated tariffs, i.e. in the universal market, but purchase energy according to offers from private companies licensed for trading.
According to ERO, around 1,300 businesses are involved in this process, consuming around 37% of total energy.
The business community has opposed the decision, including through protests, deeming it harmful due to the high prices being offered by licensed suppliers.
A total of 27 companies are licensed for electricity trading - and three more are in the licensing process.
The process of liberalizing the energy market has hit manufacturing businesses hard, significantly increasing costs and limiting their opportunities for expansion and employment.
The company "Pestova" in Vushtrri - which deals with the processing and production of potatoes and has 260 regular employees - told Radio Free Europe that it has stopped a new production line and suspended the hiring of 20 new workers, due to the increase in energy prices.
Even though she spent 4% less electricity in September this year, her bill increased from 10,962 euros to 25,535 euros - an increase of over 100% compared to last year.
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