Kosovo businesses block roads over power price hike

By Fatos Bytyci

Hundreds of business owners blocked roads into Kosovo's capital Pristina on Thursday to protest at a regulatory mandate forcing them to buy power from the open market that they say could triple their electricity bills.

The energy regulator announced in March that from June 1 all companies with more than 50 workers or a turnover exceeding 10 million euros ($11.29 million) will no longer be shielded by government subsidies that make power bills in Kosovo some of the lowest in Europe.

The regulator said that the move reflected its commitment to "market liberalisation", itself a condition for membership of the European Union. But businesses said it would hit their bottom line.

Lorries, small trucks and workers in uniforms blocked several main roads in Pristina. A strong police contingent monitored the protests.

Shaqir Palushi, the owner of Frutex, a beverage company, said that his yearly power bill would triple to around 1.3 million euros based on quotes he got from various suppliers.

"We are not against entering the open market, we just want a one-year period to make investments in solar panels and battery storage in order to self-produce a big part of the power for our own needs," he told Reuters.

Kosovo, one of the poorest countries in Europe, produces more than 90% of its power from two aging coal-fired plants. But it relies heavily on imports to fill yearly shortfalls. Last year, the government purchased 114 million euros of electricity from the open market to fill the gap.

Prime Minister Albin Kurti, whose party came first in February's parliamentary election but failed to win a majority, showed no sign of backing down.

"Fulfilling their request for more time does not resolve the problem but only transfers energy costs from 1,200 companies to your household bills," he told a government session on Thursday, before the protest.

Kosovo applied to join the EU in December 2022.