Kosovo’s Energy Regulatory Office (ERO) has decided to increase energy price for households consuming over 800 kw in an attempt to reduce energy consumption.
On Tuesday, ERO announced their decision following consultations with involved institutions and after a number of protests opposing an expected hike in price.
The price will remain the same for up 800kW per month (€2.89 per 100Kw) but it will double (€5,9) for the exceeding energy amount. This new regulation takes effect immediately and will stay in place for one year.
Criticism to ERO announcement from citizens, civil society and opposition was swift. A number of non-governmental organization rebuked ERO’s stated objective to reduce consumption, claiming that the threshold is too low. Others compared the hike to Kosovo’s minimal wage of €170, the lowest in Europe, closely following that of Albania at €250.
Opposition parties called an extraordinary parliamentary session to discuss the hike in price, during which they accused the government of Albin Kurti of using ERO as a pawn to extract more money from citizens.
During a cabinet meeting today, Prime Minister Kurti said his government has spend €120 million since the start of energy crisis for energy imports, while €100 million more will go to subsidize ERO for the energy consumed below the 800 kW threshold.
Over 70 percent of household won’t feel the price hike during winter, Kurti said, while in summer this goes up to 90 percent. Business won’t be affected by the hike in order to avoid a hike in products prices.
Critics maintain that the strategy is unsustainable, as energy prices are not expected to lower worldwide, and in one year from now government subsidies will end, leaving consumers in front of the same crisis.