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Kosovo Business Owners Protest Energy Market Reforms Over Soaring Electricity Costs

Business owners in Kosovo protested power market reforms that could have tripled their electricity bills from June 1.

Hundreds of business owners blocked key roads leading into Kosovo’s capital, Pristina, on Thursday in a dramatic protest against a new regulatory mandate that could triple their electricity bills. 

The demonstration reflects growing concerns over a government-backed energy market reform that businesses claim could devastate their operations.

The Energy Regulatory Office announced in March that starting June 1, companies with more than 50 employees or an annual turnover exceeding 10 million euros will be removed from government electricity subsidies. These subsidies have long kept Kosovo’s electricity prices among the lowest in Europe. Now, affected companies must source power from the open market, where prices are significantly higher.

Authorities argue the move is a necessary step toward market liberalisation, one of the conditions for Kosovo’s bid to join the European Union. However, business owners say the change will severely affect their bottom lines without adequate preparation time.

The protest brought parts of Pristina to a standstill, with lorries, small trucks, and workers in uniforms blocking several major roads. A significant police presence monitored the protest to ensure public safety, but the atmosphere remained tense.

One of the demonstrators, Shaqir Palushi, who owns Frutex, a beverage company, said his annual electricity bill is projected to rise to 1.3 million euros under the new rules — nearly triple his current costs.

“We are not against entering the open market,” Palushi said. “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.”

Kosovo, one of Europe’s poorest nations, generates over 90% of its electricity from two ageing coal-fired plants. Yet, these facilities are unable to meet national demand, forcing the government to rely heavily on imports to bridge the gap. In 2024 alone, the state spent 114 million euros on open market electricity purchases.

Prime Minister Albin Kurti, whose party failed to secure a majority in the February parliamentary elections, has rejected calls to delay the policy. Speaking at a government session on Thursday before the protests, Kurti defended the reform.

“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 said.

Kosovo officially applied for EU membership in December 2022, and government officials have reiterated that reforms like energy market liberalisation are essential for aligning with EU standards.

But with businesses warning of job losses and operational risks, the government may soon find itself balancing the demands of European integration with the economic realities facing local industries.

Melissa Enoch

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