ERO comes up with a proposal for electricity prices, here is how consumers are classified

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The Energy Regulatory Office has published today a consultative report in the framework of the extraordinary review they have made for the change of electricity tariffs.

Taking into account a commitment of the Government of Kosovo that it will allocate 75 million euros to mitigate the impact of the energy crisis on tariffs, ERO says that there is no need to increase the price of electricity for consumers who spend up to 600 kWh electricity per month.

The subsidy provided by the Government effectively affects that the tariffs of business consumers do not increase and the bills for household consumers do not increase for the consumption that can be provided with the existing tariff from local capacities in Kosovo up to 600 kWh per month, it was announced in report.

ERO's proposal is that the price of electricity be increased for consumers who spend over 600 kWh per month, while those who spend up to 800 kWh or more, will not be helped even by the Government subsidy.

ERO proposes that the tariff for consumers with 800 kWh of electricity consumed per month be increased to 13.31 euros, while those who spend 1000 kWh will face an increase of 24.62 euros.

If the Government does not allocate subsidies, ERO considers it necessary to increase the price of electricity for other categories. In this case, ERO proposes that electricity tariffs be changed in order to increase the price of electricity by 9% for business consumers.

An increase in the price of electricity by 9% is also proposed for households, which are considered to consume up to 600 kWh of energy per month.

In this case, it is also proposed to apply a tariff of 0.21 euro / kWh for energy consumed at high tariff time during the day and 0.09 euro / kWh for energy consumed at low tariff at night.

A consumer who consumes 300 kWh per month is considered a consumer who consumes the energy needed to cover the essential needs of a family of four. During the year, 20.5% of customers do not cross this threshold in any month, according to ERO. These customers fall into category A.

The consumer who consumes 450 kWh per month represents the average consumption of a household consumer during the year.

Based on KEDS data, the average consumption (from 2012 - 2020) by households consuming over 300 kWh per month, is ~ 460 kWh / month. The average consumption in 2021 for households consuming over 300 kWh / month of electricity is about 440 kWh. During the year, 44% of consumers do not cross this threshold in any month. These customers fall into category B.

Consumer consumption of 600 kWh per month represents the minimum basic consumption of a consumer with electric heating during the winter, based on analysis when placing the block at past tariffs, 69 percent of consumers do not cross this threshold in any month during the year, and 79 percent of consumers do not exceed this level during the summer months. These customers fall into category C.

The consumer who consumes 800 kWh per month represents a consumer with consumption above the proposed block. These customers fall into category D.

The consumer who consumes 1000 kWh per month represents a consumer with the highest electricity consumption. These customers fall into category E.

ERO offers regulated companies, customers and other stakeholders the opportunity to review the data and views presented in the consultation report and comment on them, presenting counter-arguments or providing new data which ERO may not have have taken into account. Parties wishing to express their views on ERO's position are invited to submit their written comments to ero.pricing‐[email protected]-ks.org, no later than January 28, 2022, at 18:00 p.m.