The Board of Energy Regulatory Office (ERO), yesterday, on 18 June 2019, presented the Annual Report 2018 to the Parliamentary Committee for Economic Development, Infrastructure, Trade, Industry and Regional Development.
The presentation of Annual Report 2018 on behalf of ERO Board was carried out by Mr. Arsim Janova, Acting Chairman of ERO Board.
Mr Janova explained to members of the Committee that during 2018, besides the numerous challenges in the energy sector in the country, there have been various achievements as well.  Among them is the approval by ERO of four rules, six codes and two procedures which are related to the energy sector. It was also reported on the licensing of four companies for carrying out the electricity supply activity, whereas four companies applied for obtaining the license following the construction of capacities through the authorization procedure. One of them was issued the long-term license whereas the remaining three are in the evaluation process.
With respect to Authorization Procedures for construction of new generation capacities, during 2018, ERO issued six Final Authorizations and thirteen Preliminary Authorizations for construction of new generation capacities for electricity generation from renewable energy sources. Whereas with Final Authorizations, in the process are three projects from water sources with a capacity of 11.3 MW and three projects from wind sources with a capacity of 103.5 MW.
ERO has also reported on the continuous monitoring of activities in the energy sector, regarding which members of the committee requested the submission of Monitoring Reports.
In relation to the liberalization of the electricity market, in October 2018, ERO Board issued the Preliminary Decision on Certification of KOSTT. Through this certification, the Regulator has confirmed that there is sufficient division of control on TSO in relation to the generation and supply and that KOSTT as an energy enterprise is in compliance with unbundling provisions, as set in EU Directive on Energy and Kosovo’s Law on Electricity. The certification of KOSTT verifies the full functioning of this enterprise within the territory of Kosovo, in compliance with EU Directives on Energy. It will also make Kosovo’s energy market more reliable for foreign investors who are interested to invest in our country. In this aspect, according to the Guideline of 2017, ERO has decided on the opening of wholesale market, starting with  generation, followed by the liberalization of the retail market and adjusting it to the circumstances of energy sector in Kosovo.

The deregulation of energy prices of KEK was carried out at the beginning of 2017. In addition to this, the opening of electricity market also started at the beginning of 2017, with the transition of 220kV and 110kV costumers in the market at unregulated prices of electricity supply, which comprises about 8% of energy demand. Whereas, for customers connected to lower voltage levels, ERO has reported that there is stagnation in the market opening process because the licensed suppliers, except for the Universal Service Supplier, have not begun to exercise their functions yet.
With respect to price regulation, during 2018, the Regulator has finished the “Second Regulatory Review” for the regulatory period 1 April 2018-31 March 2023, to determine the Maximum Allowed Revenues of the licensees: Transmission System Operator and Market Operator (TSO/MO), Distribution System Operator (DSO-KEDS) and for one-year period for the Universal Service Supplier (USS-KESCO) as well as licensees in the thermal energy sector. During this multi-year tariff review, the Regulator has analysed the data for the previous five years (2013-2017) and carried out the forecast for the next five year period (2018-2022).
Regarding costumer protection, during January - December 2018, the Regulator has resolved 223 customer complaints, including complaints that were returned for review to the supplier and Distribution System Operator. Out of the total number of resolved complaints, 136 of them were resolved in favour of customers or expressed in percentage 61.26%, while 86 customer complaints or 38.74% were rejected as ungrounded.
According to ERO data, electricity generation in 2018 was 5,311 GWh, out of which 5,008 GWh are from power plants, while HPPs and other RES are 303 GWh, which marks a slight increase compared to generation in 2017.
Regarding the thermal energy sector, during 2018, ERO reported that the situation remains largely unchanged. The Cogeneration Project at DH Termokos has provided good results by increasing the quality of heating for customers connected to the network, while the Cogeneration Project in DH Gjakova is in the execution process. Thermal power generation in 2018 at DH Termokos was 224 GWhTh, while DH Gjakova 8.8 GWhTh. The thermal energy consumption in 2018 in DH Termokos was 197 GWhTh, whereas at DH Gjakova was 6.6 GWhTh.

ERO will also submit to the Committee the specific monitoring reports of enterprises and additional explanations, as requested by the deputies.

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