The Office of the Energy Regulator (ERO) has returned a negative response to KESCO, after the request for an increase in the price of electricity up to 88 percent.

This comes after the Government has decided to divide the subsidy, with which the circumstances for the Extraordinary Review of the Maximum Allowed Revenues of FSHU, respectively of electricity tariffs for consumers with the right to Universal Service, have ceased.

"With the decision of the Government of Kosovo dated 24.08.2022, for the allocation of the subsidy, the circumstances for the Extraordinary Review of the Maximum Allowed Revenues of the FSHU, respectively of the electricity tariffs for consumers entitled to the Universal Service, have ceased" , it is stated in the ERO communique, Telegrafi reports.

On August 9, 2022, the Office of the Energy Regulator (ERO) accepted the application for the Extraordinary Review of the Maximum Allowed Revenues for the Universal Service Supplier (USS).

Among other things, in its request FSHU states that in the absence of reimbursement of subsidy funds from the Government of the Republic of Kosovo in the amount of 32.8 million euros for the period February 9 - June 30, 2022, the materiality threshold of 5% as defined in FSHU Revenue Rule, thus enabling the opening of extraordinary review.

ERO, in accordance with the Rule on the Determination of Allowed Revenues for the FSHU, has carefully analyzed the FSHU's application, and finds that the extraordinary event was not under the FSHU's control, and that the lack of Government subsidy of Kosovo would exceed the materiality threshold of 5% in the Maximum Allowed Revenue of FSHU, which would open the extraordinary review of tariffs for consumers who enjoy the right to universal service.

On August 24, the Government of Kosovo approved the request of the Ministry of Economy for budget allocation in the amount of 41 million euros related to the Economic Revival Package for the implementation of Measure 3.7 - Support in overcoming the energy crisis.

ERO says that during the coming months, it will closely monitor the cost situation of the regulated electricity sector and will take the necessary steps in accordance with its legal mandate.

Otherwise, KESCO had requested the increase in electricity tariffs up to 88 percent for households and up to 70 percent for businesses.

/Telegraph/