Energy Community urges Kosovo to amend electricity sector legislation

By bne IntelliNews October 10, 2015

The EU Energy Community has criticised Kosovo for failing to amend its legislation to ensure the effective transposition and implementation of the Third Package provisions in the electricity sector. Kosovo missed the January 1, 2015 deadline for transposing the Third Package, but is expected to amend its legislation by the end of the year.

The implementation of the Third Package, which was incorporated into the Energy Community acquis communautaire in October 2011, will allow Kosovo to liberalise the electricity market and open the way for the development of the country’s gas sector. Signatories to the Energy Community treaty, which are mainly EU aspirant states from Southeast Europe, had been given until January 2015 to transpose the Third Package, a set of EU legislation aimed at making the EU’s energy market fully effective and creating a single EU gas and electricity market.

As of now, the Third Package has not been transposed in Kosovo, liberalisation of the electricity market is still pending and the country is lagging far behind the implementation of its target for renewable energy, said the statement released by the Energy Community on October 8.

The pace of market reform slowed down to some extent as Kosovo focused all the attention on one investment, the new thermal power plant Kosovo e Re, it said.

The Energy Community noted that institutional weaknesses still needs to be addressed.

On the other hand, agreements concluded between the transmission system operators of Kosovo and Serbia and the start of the connection process with ENTSO-E raise hope for Kosovo’s full and equal integration in the regional market.

The Energy Community said that the Energy Regulatory Office of Kosovo must impose measures aimed at deregulation of prices in the wholesale and retail electricity markets and limit public service obligation to what is necessary to address market failure without delay.

Pristina was also advised that the current cross-subsidisation between different categories of customers must be phased out.

“The necessary preconditions for retail market opening need to be put in place, including development of switching rules, appointing a supplier of last resort and defining load profiles for customers without interval meters. Distribution tariffs must be publicly available in order to allow for non-discriminatory third party access,” the Energy Community statement said.

Kosovo’s electricity transmission system operator KOSTT must also start to procure balancing services and address network losses through transparent and market-based procedures.

The Energy Community said that a gas market does not yet exist in Kosovo, but regional gas studies envisage the possibility for the country to become interconnected with the emerging market in Albania or with neighbouring Macedonia, which corresponds to Kosovo’s strategic plans.

Only after establishing a legal framework compliant with the acquis, will Kosovo be able to develop its natural gas infrastructure, including participation in regional gas initiatives.

Abandoning the customs duties levied on imports of petroleum products is a precondition for terminating the infringement action against Kosovo (Case ECS-12/14), which was launched by the Energy Community’s Secretariat in July 2014, it advised.

The parties to the Energy Community Treaty are the European Union, on the one hand, and on the other the contracting parties: Albania, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, Serbia, Kosovo and Ukraine. The countries should implement the relevant EU energy acquis communautaire, to develop an adequate regulatory framework and to liberalise their energy markets in line with the acquis under the Treaty.

 

Related Articles

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss