Secretariat opens dispute settlement procedure against Kosovo for illegal State aid to Kosovo e Re

23 December 2019

On 20 December 2019, the Secretariat sent an Opening Letter to Kosovo* in Case ECS-4/19,  addressing its concerns with regard to the illegality and existence of State aid in relation to the Kosovo e Re project. In particular, the Secretariat preliminarily found that certain measures, such as energy and availability payments over 20 years under the power purchase agreement, the sale and transfer of the plant site under market value, a state guarantee, a VAT exemption, and taking over several charges and costs constitute State aid. 

These measures have not been notified to the competent State aid authority and therefore constitute per se illegal State aid.

By sending the Opening Letter, the Secretariat initiated a preliminary procedure, the purpose of which is to give Kosovo* the opportunity to react to the allegation of non-compliance with Energy Community law within two months and to enable the Secretariat to establish the full background of the case.

According to Articles 7 and 17 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat during the preliminary procedure. All requests for information on this case should be addressed to the Deputy Director and Legal Counsel at dirk.buschle@energy-community.org or +43 1 535 2222 24 and should refer to the case number ECS-4/19.

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.

In Scope:

  • Kosovo Kosovo