State of Compliance

Although Kosovo* has transposed the competition and State aid acquis, it has no enforcement activities in the energy sectors. The lack of enforcement of competition and State aid acquis is due to institutional issues.

  • Competition Law

    Competition Law

    Kosovo* has transposed the competition acquis via its Law on Protection of Competition of 2010, amended in 2014.

    The KCA has so far not investigated any cases in the energy sectors. However, during the reporting period it conducted an assessment of monopolies in the energy sector. It concluded that there is insufficient competition on the market for supply, which is dominated by Kosovo Electricity Supply Company (KESCO), with two additional licensed suppliers not fully active yet. The recommendations given by the KCA are very general and the follow-up to this report needs to be monitored closely. No anti-competitive practices were identified in the report. However, full compliance with the Treaty’s obligations require active enforcement of the competition acquis.

    The KCA does not cooperate with the Secretariat and other national competition authorities in the framework of the Energy Community Competition Network.

  • State Aid Law

    State Aid Law

    The new Law on State Aid, which entered into force on 17 January 2017, transposes the State aid acquis.

    As required by the Law on State Aid, the SAD under the Ministry of Finance has been set up. Due to the integration of the SAD into the ministry, its independence is questionable. Furthermore, the SAD still has no sufficient human and technical resources to actively enforce the State aid acquis. Furthermore, the members of the SAC have not been appointed. Therefore, Kosovo* lacks an effective enforcement institution. This issue is subject of a dispute settlement case opened in 2011.

    There have still been no enforcement activities in the energy sectors since the Law on State Aid first entered into force in 2014. There is also no commitment to the Energy Community State Aid Network. It follows that Kosovo* is still not complying with the obligations stemming from the Energy Community Treaty regarding the effective enforcement of the State aid acquis.