
Ombudsperson issued the legal opinion about the new structure of energy tariffs
Prishtinë, May 23, 2022 – The Ombudsperson has published today the Ex-Officio Opinion No. 39/2022 with regard to evaluation of the new tariff structure in Kosovo, that handles the legality, and above all, the elements of human rights that might have been violated by Energy Regulatory Office (ERO) for determination of tariff structure.
Based on Ombudsperson’s assessment, ERO’s decision has elements of discrimination and unequal treatment of consumers. Different tariffs based on the level of electricity consumption are in contradiction with Article 47 of Law no. 05 / L-084 on the Energy Regulator which emphasizes the need for tariffs to be non-discriminatory.
ERO’s decision to exclude consumers in northern Kosovo from the increase in electricity prices creates a situation of discrimination against the rest of consumers. Furthermore, subsidizing between categories of customers at regulated prices also places ERO in a discriminatory position.
The decision for retroactive billing and the failure of its disclosure in the bill as well as the non-reflection of subsidy level in the bill is also a violation of consumers’ right on information. The affirmative measures imposed in the ERO Decision are not equally enjoyed by all consumers with regulated prices and all citizens of the Republic of Kosovo are not equally affected by the increase of energy prices.
ERO’s decision to selectively increase the price of energy, to set block tariffs and the decision to fund also selectively, contradict the principles of setting tariffs described in local legislation, with the legislation of the Energy Community in Vienna and in contradiction with the provisions of the Law on Customer Protection.
The Ombudsperson deems as necessary that the Government of Kosovo should establish a Fund for Consumers in Need. Newly announced package of energy legislation to clearly define the line of energy poverty and link it to household income, so that support for vulnerable consumers is sustainable, dynamic and reflects their socio-economic situation without discriminate against others.
Discrimination based on consumption level should be removed and ERO in cooperation with the Government, the Kosovo Agency of Energy Efficiency and the Efficiency Fund to find other awareness raising mechanisms to promote efficiency without restrictions on consumption levels and price differences for utilization of a convenience to be paid for the unit of consumption, not for its volume.
The Ombudsperson deems as necessary that the whole process of determination of the tariff structure and the amount of tariffs is returned to point zero and any future process, to be followed by the principles of ethnic or regional non-discrimination and consumer equality in the regulated market.
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