Regulatory authority

State of compliance

Since the alignment of national legislation with the requirements of the Third Energy Package in 2016, the organisation, competences and independence of the Energy Regulatory Office (ERO) is compliant with the Energy Community acquis communautaire. ERO is headed by five board members, including a chairperson. The term of board members is limited to a period of five years, renewable once and including a rotation scheme. As an aspect of improvement, the selection procedure of commissioners would be better protected from political influence if an expert committee was involved. On the practical side the regulator’s effective functioning is blocked since the board lost its decision-making quorum in April 2017. A precise date for replacement of the vacant board positions is still pending which is a serious infringement of ERO’s independence. ERO is accountable for its activities by presenting its annual report to the parliament.

During the reporting period, ERO improved its profile at the national level. First steps in liberalizing the electricity market and the introduction of an exemplary practise for mutual recognition of licenses based on the principle of reciprocity proves that the regulator is starting to live up to its competences and the challenges of compliance with the acquis. This deserves particular praise in an environment as difficult as that of the Kosovo* electricity sector.