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Kosovo: MEM sets tough criteria for eligible customers


Prishtinë, Apr 14, 2006 - Only customers directly linked to the KEK transmission grids at the high voltage line of 110 kV and higher, and those which posses metering, control and communication equipment compatible to the conditions set by Article 33.2 of the Law on Electricity, may gain the status of "eligible consumers" for KEK. This is written in the Administrative Directive No 001/2006 on implementation of the Law on Electricity No 2004/10, on determination of conditions for identifying privileged consumers for the year of 2006, issued recently by the Ministry of Energy and Mining (MEM). Koha Ditore wrote that it possesses a copy of the Directive.

The Directive clearly states that an "eligible customer" may gain the status, but they can also lose it if they endanger the financial position of KEK and/or electricity supply for other consumers, such as households. "The consumer may have the eligibility status for as long as none of the three conditions are met: if it impacts negatively the KEK business which in turn would cause the failure to fulfil the obligations towards other consumers (public utility obligations); if it imposes whatever unreasonable limitations to the actual or planned industrial structure, KEK and the retail or wholesale markets of electricity, then if it represents cross-subsidy of prices between eligible consumers and those regulated (tariff), and if it causes KEK general losses in a 12-month periods, which directly or indirectly impose the need for subsidies from the Kosovo Budget". Such a condition would result into an immediate revocation of the status,” the Directive reads.

The Ministry has issued this Instruction following the signature of the contract between "Alferon", the buyer of "Ferronikeli" and KEK. "Alferon" has always requested the electricity supply from KEK, although the latter has offered its grid for "Alferon" to be supplied by other companies as well.

The agreement was signed after marathon negotiations. According to the MEM, the Directive was based on UNMIK Regulation 2001/19 and the Article 22.2 of the Law on Electricity No 2004/10.

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Background information for foreign investors

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