Electricity

Implementation indicators

  • Unbundling

    Unbundling

    The transmission system operator is ownership unbundled and was certified in line with the Secretariat’s Opinion. The
    distribution system operator is legally and functionally unbundled.

     

  • Access to the system

    Access to the system

    Network tariffs are non-discriminatory and publicly available. Third party access to the new interconnection line with Albania is still not ensured. The Transparency Regulation is transposed and its implementation has started. The Connection Network Codes are implemented but not formally transposed by a legislative or regulatory act.

  • Wholesale market

    Wholesale market

    The wholesale market is deregulated. The transmission system operator signed a shareholders agreement with the transmission system operator of Albania for the establishment of the power exchange company ALPEX. A balancing market is yet to be established. REMIT was transposed but remains to be implemented.

  • Retail market

    Retail market

    The retail market continues to be predominantly regulated. Only industrial customers connected to 220kV and 110kV are supplied on the open market. The deadline of April 2020 for customers connected to the 35 kV voltage level to choose their suppliers at unregulated prices was not met. KESCO continues to act as the universal service supplier until 31 March 2021.

  • Regional integration

    Regional integration

    The implementation of the connection agreement with ENTSO-E will finally make possible day-ahead and balancing market integration of the electricity markets of Kosovo* and Albania, including the allocation of capacities on the interconnection line with Albania. Other cross-border capacities, currently allocated by EMS of Serbia, are
    planned to be allocated by SEE CAO as of 2021. The transmission system operator signed an agreement on establishing a Load Frequency Control (LFC) block with the transmission system operator of Albania.

State of compliance

The reporting period was marked by the signing of the connection agreement between the transmission system operator of Kosovo*, KOSTT, and ENTSO-E, which entered into force in October 2020. The contract for the new Kosovo e Re coal-fired power plant was terminated by the investor. These developments are expected to give rise to day-ahead market coupling and cross-border balancing cooperation, with Albania in the first place.

A contract on the establishment of a joint load frequency control (LFC) block between the transmission system operators of Kosovo* and Albania was signed in November 2019. Procedures for the dimensioning of balancing reserves and exchange and activation of balancing energy in the control areas and the LFC block were drafted, a public consultation was completed in September 2020.

Furthermore, KOSTT signed a shareholders agreement with the transmission system operator of Albania to establish the power exchange company ALPEX. The establishment and registration of the company was completed in October 2020. The operation of ALPEX and the market coupling of Kosovo* and Albania should be launched simultaneously in the first half of 2021. Following a recommendation of the Energy Community Regulatory Board, the regulatory authority (ERO) adopted rules setting the procedure for designating the Nominated Electricity Market
Operator in line with the Capacity Allocation and Congestion Management Regulation.

In June 2020, ERO approved the Rule on Wholesale Energy Market Integrity and Transparency, transposing the REMIT Regulation. Following the entry into force of the connection agreement with ENTSO-E, the allocation of capacities on the new 400 kV interconnector between Albania and Kosovo*, as well as on the interconnectors currently allocated by the transmission system operator of Serbia, will be performed by SEE CAO. Allocation is
expected to start with yearly auctions for 2021.

The certification of KOSTT was completed in line with the Third Energy Package in February 2019, following a positive Opinion of the Secretariat. The distribution system operator KEDS is unbundled from supply activities already since 1 January 2015. Amendments to the compliance programme of 2015 were approved by ERO in February 2020, following which KEDS appointed a compliance officer.

Transmission and distribution tariffs for the period from April 2020 to March 2021 were approved by ERO. The network tariff to be paid by generators connected to the transmission network was decreased in 2020. However, it still exceeds the maximum value allowed by Regulation (EU) 838/2010. KOSTT set up a transparency platform and started publishing data in line with Regulation (EU) 543/2013. The data are not yet published on the ENTSO-E Transparency Platform. The Connection Network Codes are implemented through amendments to the grid code, however, formal transposition by a legislative or regulatory act is still missing.

For the third consecutive year, there was no progress towards opening of the retail market for medium voltage customers. Despite the deadline for 35 kV customers to choose their supplier on the free market until 1 April 2020, they continue to be supplied by the universal supplier at regulated prices. In July 2020, the regulator adopted a decision extending the obligation imposed on the supply company KESCO to perform universal supply until 31 March 2021. The extension was justified by reference to the Covid-19 crisis.