ALPEX, ZRRE Board makes these decisions

ALPEX, ZRRE Board makes these decisions

Licensed Market Operator of Electricity – NEMO (ALPEX) for the 2026–2028 period, and has also decided on the appointment of the Supplier of Last Resort (FMF), during its first meeting of 2026, held on Thursday, reports KosovaPress.

According to ZRRE, the allowed revenues for Kosovo have been set at €669,028 for 2026, €712,410 for 2027, and €835,613 for 2028, with their structure mainly dominated by operational costs.

The Head of the Tariff Department at ZRRE, Muharrem Gashi, stated that the institution had accepted ALPEX’s application for determining NEMO’s revenues and tariffs, emphasizing that the review process was carried out in accordance with the applicable legislation and relevant methodology.

“ZRRE has accepted ALPEX’s application for determining the revenues and tariffs of NEMO for the 2026–2028 period. After analyzing and reviewing the application from a technical, financial, and legal perspective, ZRRE also carried out a public consultation process, which resulted in a consultative report that was published on ZRRE’s website. This legal procedure gives ZRRE the authority to approve the allowed revenues and tariff structure. The proposed allowed revenues include the standard regulatory components, such as operational costs, costs related to capital investments, depreciation, working capital, and license fees. The proposed values for Kosovo for 2026 are €669,028, for 2027 are €712,410, and for 2028 are €835,613. The revenue structure is mainly dominated by operational costs. This increase is not due to a rise in tariffs, but results from higher costs per unit and increased energy volume,” he said.

He clarified that the increase in allowed revenues is not due to higher tariffs but stems from the increase in unit costs and the volume of traded energy.

“The NEMO tariff list for Kosovo is proposed to remain unchanged compared to the previous period and will continue to apply to the market. ALPEX’s tariffs should be clarified as applying only to services for stock exchange members, including annual fees, administrative fees, and variable trading fees. These tariffs do not represent electricity prices on the exchange, as market prices are automatically determined by the trading platform based on the supply and demand bids of market participants every day and every hour,” Gashi said.

Meanwhile, the acting Head of the Legal Department at ZRRE, Ymeridin Misini, spoke about the Board’s decision regarding the appointment of the Supplier of Last Resort.

“Regarding the legal framework, the Law on Electricity, specifically Article 40, defines that the Supplier of Last Resort exists as a protective mechanism for consumers to ensure electricity supply is not interrupted in cases where the consumer is left without a supplier for reasons beyond their control. FMF is not a regular commercial supplier, but a public service protection mechanism. FMF is activated only in exceptional and temporary situations. An important element emphasized by the law is that FMF service is not permanent; consumers have the right to be supplied by FMF only for a limited period, which cannot exceed 60 days. As a result of a failed or canceled tender, the Board concluded that conditions were met to appoint a temporary Supplier of Last Resort,” Misini emphasized.

Misini stated that, since two unsuccessful tender procedures were conducted and the mandate of the temporary Supplier of Last Resort ended on 30 January 2026, ZRRE found that the legal conditions were met to move to the phase of appointing the Supplier of Last Resort by a specific act for a three-year term.

“Since two unsuccessful tender procedures were conducted and the mandate of the temporary Supplier of Last Resort ended on 30 January 2026, ZRRE concluded that the legal conditions were met to appoint the Supplier of Last Resort through a specific act for a three-year period. Therefore, after assessing technical, organizational, and financial capacities, as well as the willingness of licensees to take on this responsibility for electricity supply, we propose to the Board that KESCO continues to be appointed as the Supplier of Last Resort, as it has experience in performing this responsibility, possesses the necessary software, has professional human resources, and financial stability, and will be able to carry out this function as FMF from 31 January 2026 to 30 January 2029. FMF is not a long-term supplier; it is a time-limited protective mechanism to prevent any consumer from being left without supply,” he added.

In this ZRRE meeting, KESCO’s request to increase tariffs by 21 percent was not reviewed.

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