AKB and OEK on the increase in electricity prices: Businesses are leaving Kosovo, while citizens are becoming poorer

AKB and OEK on the increase in electricity prices: Businesses are leaving Kosovo, while citizens are becoming poorer

Experts in economic circumstances estimate that the price increases in electricity are causing serious consequences for both businesses and citizens.

The President of the Kosovo Business Alliance, Agim Shahini, and the former President of the Kosovo Chamber of Commerce, Safet Gërxhaliu, said that businesses are leaving Kosovo, while citizens are becoming poorer.

“ERO has proven to be unfair to all economic operators in Kosovo and its decisions have severely damaged the economy, production, local services, and raised prices due to the increase in the price of electricity for the most powerful economic operators in Kosovo. It has now reduced the competitive strength of electricity, has influenced businesses to try to find cheaper places for electricity in the Balkans, while some have reduced the number of employees.

All these manipulations that ERO is trying to do are unsustainable because it has achieved its goal: it has made energy more expensive, making it the most expensive in the Western Balkans, it will make it more expensive again in the fall and certainly in the winter it will hit us with a price over 30 percent more expensive. This will significantly burden the consumer basket of Kosovo citizens and businesses. And businesses do not have the only alternative to staying in Kosovo, but are looking to transfer their capital outside of Kosovo”, said Shahini.

He warned that rising prices that are forcing businesses to move capital abroad are contributing to rising unemployment.

“We have businesses of foreign investors that have laid off dozens of workers after the ERO decision, we have local businesses that are moving production outside of Kosovo. The situation is worsening, this best shows us how many new manufacturing companies have opened within this period. Businesses will increase the price of their products and have increased the price, some have reduced workers, and the number of exports will also decrease, because competition is weaker and the number of imports will increase. On average, imports will exceed 7 billion euros, which is the largest import in the history of Kosovo,” said Shahini.

Meanwhile, economist Safet Gërxhaliu expresses the view that the lack of reforms in the energy market and dependence on imports are leaving citizens and businesses at the mercy of foreign prices.

“The ERO’s statements on the review of the decision to increase the price of electricity are not a surprise, since we have warned that there will be another increase in the price of electricity at the end of the year because we do not have a decision to regulate the free market, we do not have the elimination of bureaucratic procedures for issuing licenses for local production of electricity, whether based on the sun or in terms of hydro. We are dependent on imports, so the fate of the price is not dictated by the citizens of Kosovo, but by the market. Until we have economic independence, we will depend on imports that are damaging the private sector, the business sector. In Kosovo, we have much more repairs than we have in investment in expanding production capacities, this is a political strategy,” said Gërxhaliu.

He considers the new increase in energy prices to be worrying, especially in times of inflation and economic stagnation.

“The increase in energy prices is happening at a time when we have inflation and price increases and at a time when Kosovo is emptying. In this race to raise prices, thanks to inflation and corruption, we have a wage freeze in both the private and public sectors. It is very worrying,” added Gërxhaliu.
Days ago, in a press conference, ERO requested that businesses respect legal decisions, stating that increases are not a desire, but a legal obligation. /Ekonomiaonline