Prishtina, 18.01.2022 – The Energy Regulatory Office (ERO), an independent institution responsible for setting tariffs that reflect the cost to final consumers, has issued its Consultative Report on the Extraordinary Review of Electricity Tariffs.

This has come as a result of the last quarter of 2021, when Kosovo had to import electricity to supply consumers with electricity above the level that can be provided by local generation capacity and to meet the increase in demand due to the cold weather. The cost of electricity supply from imports has risen significantly, affecting the cost of energy.

ERO has proposed to restore the block tariff up to 600 KWh for household consumers, and to increase electricity tariffs by 9% for all commercial consumers and household consumers consuming up to 600 KWh, while tariffs for households spending over 600 KWh would reflect the import price.

Given the extraordinary and unprecedented situation in the European electricity markets that has affected Kosovo, the Government of the Republic of Kosovo at the request of the Ministry of Economy has committed to subsidize the citizens and businesses of Kosovo, thus protecting them from tariff increases. Subsidies represent revenues for the sector that do not need to be covered by electricity tariffs and, consequently, mitigate the increase in electricity tariffs.

The electricity subsidy by the Government will make the tariff for business consumers to remains with 0% increase, the tariff for households consuming up to 600 kWh remains with 0% increase, while the tariff proposed by ERO for household consumers for consumption over 600 kWh to be reduced, reflecting the import price for these consumers and promoting energy efficiency.

During this extraordinary time, the primary purpose of the subsidy allocated by the Government of Kosovo is to protect particularly vulnerable costumers from the impact of higher electricity prices.