The Ministry of Economy submitted its comments on the ERO’s Consultation Reports
Prishtina, 02.02.2022 – The Ministry of Economy has submitted its comments on the “Consultation Report: Review of the Tariff Structure for Regulated Household Customers served under the USS” and the “Consultation Report: Extraordinary Review of the Maximum Allowed Revenues for Electricity Regulated Operators” published by the Energy Regulatory Office on 17 January 2022.
Given the large price difference by the proposed blocks (up to 600 kWh and over 600 kWh), as well as the lack of a multidimensional study, which would provide the determination of the threshold, the Ministry of Economy has proposed two alternatives to ERO.
Alternatives proposed by the ME are as follows:
1. Expansion of the tariff range, respectively change of the block threshold from 600 kWh to 800 kWh, taking into account the effectiveness of this mechanism in the absence of other alternatives of providing electricity for the heating needs by some consumers; or
2. Increasing the number of tariff blocks, which would enable the escalation of tariffs across blocks, and setting a tariff lower than the one that has currently been proposed for consumption of up to 1000 kWh.
Further, the ME has requested from the Energy Regulatory Office (ERO), as an independent authority, which in its mandate has consumer protection, to ensure that when reviewing the tariffs to avoid cross-subsidization and discrimination between consumer categories.
Among others, the Ministry of Economy has proposed that ERO re-evaluate the calculation elements of allowed revenues, such as import prices and profit margins of the supplier, as well as to see the possibility of reducing them, in order for this to be translated into tariff reductions for consumers.
Full comments by the Ministry of Economy: