KOSTT-EMS energy dispute: Light at the end of the tunnel 

22 April 2020

After long negotiations facilitated by the European Network of Transmission System Operators for Electricity (ENTSO-E), a big step towards resolution of the dispute between the Kosovan transmission system operator KOSTT and the Serbian transmission system operator EMS came on 20 April 2020, when TSOs from Continental Europe voted positively for the draft Connection Agreement with KOSTT. This agreement, once signed and implemented, will end the long-lasting dispute between the two TSOs and give a boost to market integration in the Western Balkans and further with the rest of Europe.

The dispute was formally brought by KOSTT to the Energy Community Secretariat in 2008. After a long negotiation process, the Ministerial Council of the Energy Community found Serbia in breach of the Treaty with regards to the use of congestion revenues in 2016.

Part of this dispute, in relation to participation of KOSTT to the inter-TSO Compensation mechanism, was resolved already in 2015 under a mediation facilitated by the Dispute Resolution Centre of the Energy Community Secretariat.

The Centre supported by the German Government and KfW, mediated the negotiation with the objective of fulfilling the pre-conditions that would enable the entry into force of the Connection Agreement with ENTSO-E, namely the registration and licensing of the Serbian supplier in Kosovo*. The agreement reached within ENTSO-E two days ago gives clarity and certainty to this process.

The Energy Community Secretariat fully supports this and is looking forward to the next steps in order to formally close one of the longest and most complex disputes in the Energy Community.

 * 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:

  • Serbia Serbia
  • Kosovo Kosovo