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Establishment of Energy Regulatory Office

The Energy Regulatory Office (ERO) was established in June 2004, with the promulgation by the Assembly of Kosovo of the Law on Energy, the Law on Electricity and the Law on Energy Regulator.

The Energy Regulatory Office is an independent body, which has the duty to regulate activities in the energy sector in Kosovo, including electricity, district heating and gas, in accordance with the obligations arising from the Energy Community Treaty (This treaty was signed by the European Union and nine partners from Southeast Europe in Athens in October 2005 to establish the legal framework for an integrated energy market).

ERO has the authority to issue licenses and monitor whether these licenses are respected by energy companies, to approve the tariffs for activities of public services, to impose obligations on the supply of the population, to resolve disputes and to draft secondary legislation for the energy sector. ERO is also responsible for creating the regulatory framework, which ensures transparent and non-discriminatory functioning of the energy market, based on the principles of the free market. It implements transparent and open criteria for granting licenses to energy enterprises, including the authority to grant, modify, suspend, transfer, withdraw, supervise and control whether the energy enterprises comply with these licenses.

ERO also has the competences to set in prior the principles and methods of determining the prices and later to approve tariffs for regulated energy services. This function also includes tariff monitoring, dispute resolution, service quality and standards for performing these activities. While carrying out its duties and functions, ERO cooperates with energy enterprises and ministries, especially with the Ministry of Economic Development.

ERO is funded by license fees, which enable this office to act as a financially independent regulatory body. ERO helps and ensures that Kosovo's regulatory framework is in line with the 'acquis communautaire' (summary of EU legislation) on energy.