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"Kosovo is not prepared", AmCham demands the postponement of energy liberalization

Politiko 2025-05-09 15:04:01

"Kosovo is not prepared", AmCham demands the postponement of energy

The American Chamber of Commerce in Kosovo has reiterated its previous position that Kosovo is not prepared for such a transition. As the deadline for energy market liberalization approaches, the American Chamber of Commerce in Kosovo reiterates its previous position that Kosovo is not prepared for such a transition.

The OAS points out that beyond the lack of real competition in the market, the short term has not given businesses sufficient time to prepare, nor space to implement support measures during this transitional period, which are essential to avoid financial shocks and declining competitiveness.

"The concerns of businesses have increased significantly after the offers received from suppliers, which predict an increase of over 200% in energy tariffs, a development that contradicts expectations that liberalization would bring about a reduction in prices through competition.

This unforeseen growth will affect the wide chain of businesses in the country, from the manufacturing and processing sector, to the services, trade and technology sector, putting at risk the financial stability and investment outlook," the reaction states.

According to the Chamber, the arguments that countries in the region have successfully implemented liberalization are not valid in the context of Kosovo.

"Neighboring countries have access to alternative sources such as natural gas, while in Kosovo, due to wrong decision-making in the past, projects for the construction of gas infrastructure have been abandoned, leaving electricity as the only source for business and industrial needs.

Moreover, the non-constitution of the Assembly constitutes an additional reason why the Office of the Energy Regulator should not proceed with the plans for market liberalization at this stage, given that this independent institution is accountable to the deputies of the Republic of Kosovo," the reaction states.

For a sustainable and just transition, the American Chamber of Commerce calls on policymakers to postpone the deadline beyond June 1, 2025 and in parallel adopt the necessary secondary legislation to enable investments in energy storage technology (batteries) and in high-energy efficient systems.

Also, the introduction of a tax and customs incentive scheme for renewable energy technologies and supporting infrastructure is required. Without these measures, liberalization risks bringing more harm than good to the sustainable economic development of the country./ Monitor

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