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Third (III) Session of ERO Board in 2024

Reduction of electricity tariffs for final customers for the tariff year 2024

The Board of the Energy Regulatory Office (ERO), in its third session (III) for this year, held today on 2 April 2024, has approved the retail tariffs for final customers who are supplied under the universal service criteria.

The decrease in prices in the electricity markets in Europe has affected the wholesale costs of electricity in Kosovo. As a result of these changes, the costs of supplying electricity from imports to final customers for 2024 are foreseen to be lower compared to previous years. These changes have affected the reduction of electricity tariffs for final customers as follows:

• 8% tariff reduction for household customers for the block with consumption over 800kWh

• 3% tariff reduction for commercial and industrial customers

The Board of the Regulatory Office has also approved the tariffs for the relevant tariff year 2024 for the Transmission System and Market Operator (KOSTT) and the Distribution System Operator (KEDS).

In this session, the Board reviewed the results obtained from the evaluation of the concentration of the electricity market in Kosovo through the HHI index (Herfindahl-Hirschman Index) for the year 2023, which clearly shows that we are dealing with a high concentration in the electricity market, which shows the lack of active suppliers. Based on the results of this report, the Board has decided that the Universal Service Obligation for the next two years will be imposed to KESCO.

All decisions of the Board of ERO will be published on the official website of ERO