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1 year and a half after privatization, KEDS – higher prices, less supply, without new investment

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23 October 2014 – Thursday 11:03

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VETËVENDOSJE! held a press conference today Visar Ymer MP and member of the Committee on Energy, Prof.. Naim Hoxha, spoke in ESCR and ERO. Kosovo Privatization Company for Distribution and Supply of Electricity, Beqaj justified at the time by the necessity of increasing the efficiency of the company. This increase in efficiency will result in benefits for citizens, we were told, would improve electricity supply, would increase investment, and we would have cheaper prices. These are reasons to foster privatization.

Visar Ymer MP said that after half a year of private management of ESCR, have prices much higher, the supply has declined in quality, investments are only those projects forward from the time when the company was publicly owned. “This year we had two price increases in energy tariffs, once 4:57% and 5.18% next time. This fact alone, without stopping at all the others, clearly shows a drastic decrease of efficiency of enterprise, as an efficient enterprise offers better services with lower prices. In retrospect, electricity prices have been relatively stable from year to year since the war. The first significant growth of 8.9% occurred in 2012 when the government declared the winner consortium Limak Çalik privatization tender KEDS. And since then we have two other rising energy prices this year I mentioned above, “he said, adding that the only year when there has been no price increase since privatization was last year, when it is known ERO Y. had obliged KEK public company that give KEDS 17.9 million on the grounds of adapting maximum revenue collected from the previous year.

In the last review of the extraordinary tariff increase justified by the need to import after the explosion in Kosovo A ERO decides on KEDS to accept the request to increase the maximum income, but not the KEK who had sought additional revenues to invest in repairing the damage from the explosion.

“Energy losses continue at the same pace as before. Reduction of losses that occurred during a year of business of ESCR under private management are mainly reduction of commercial losses, thus increasing the collection. And this trend has not performed when the company was publicly owned. In this direction has recently been observed a very disturbing phenomenon. There have been several complaints from citizens on social assistance who contracted company executive from ECSR he has taken money from bank account to repay the debt of electricity, “said Ymer.Law on Execution Procedure, which privatize service execution and which we categorically rejected the Assembly in Article 85 and Article 112 then exclude this income, and all income to the level of social assistance from the procedure execution. Social assistance does not cover even the minimum living for a family. When these were removed a portion KEDS account then these families pushed into hunger. Therefore we invited all citizens who have been victims of their further impoverishment through enforcement proceedings should be commenced by the Government and the civil courts.

“From yesterday KEDS workers went on strike. They demand better conditions of work, wage growth in the sector level and job security. These basic requirements are reasonable and we support workers and their strike. At the same time ask the state authorities to take all measures to secure the workers’ right to strike, and the courts that did not fall prey KEDS management and their absurd requests the court to stop the strike . Strike can stop only the management and employees accepting their conditions. During September Edita Tahiri has reached an agreement with Serbia and energy, operational implementation plan agreement last year. This plan was never made public. Our request for access to an official document Tahiri’s office responds to delay and deny it with a banal excuse procedural “said Ymer end.

A member of the Committee on Energy, Prof.. Naim Hoxha, spoke about the functioning of the ERO, he does infringe its independence government, lack of transparency of fabricating and crafting energy prices, and the like. “ERO presented in the annual report, that because of their treatment of civil servants, and which are not, and due to declining revenue, caused leakage of staff, which is normal pamundësuarfunksionimin ERO . Despite remaining the board with only three members, despite the lack of substantial quality staff, ERO continues to perform its obligations under its no consequences. ERO follows the complete lack of transparency for HML-MAR calculations, this calculation that determines the price of electricity, as well as documents like price rise and other issues. From our request she sends us some financial documents processed operators, not the original, “said Hoxha among others.

Allowed return (RTNC) is the interest belonging to the owner and should be returned because the value of his investment. “This value, up to the sale of Distribution and Supply KEK (KEDS), has been replaced by the ERO and the Ministry of maximum values ​​12% to 5.5%. While ESCR was third in value after Mining and Generation, now has come before and presented as a value greater interest returns. So, KEDS has great value to the Mining and Generation “Kosovo A” and “Kosovo B”, therefore, can be expected that these be sold even cheaper than 26.3 million, “said Hoxha.

“Example of incorrect treatment of the elements of HML is compensation for bad debts which the years has been 10.8, 12.1 to 13 million for the respective years 2012 – 2014 These values ​​have been incorporated in the price which they pay customers” of good “instead of” evil “. And now the question is why does debt collections customer returns since they are compensated? “Hoxha finally asked.

 

October 23, 2014

VETËVENDOSJE!

Energy Committee

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