KEK Electricity Distribution and Supply is an inefficient and costly operation. The Government of Kosovo is not able to deliver the level of expertise, investment and technical operating skills necessary for a world class operation. These inefficiencies, coupled with collection deficiencies, theft, and outdated infrastructure, create an enormous financial drain on the Consolidated Budget of Kosovo.
Government subsidies to KEK are not sustainable. The drain on the Government’s budget negatively impacts the Government’s ability to address critical needs elsewhere.
Private sector investment in KEK Electricity Distribution and Supply will improve infrastructure, operating efficiency, collections, energy security, reliability and sustainability – all critical to Kosovo’s economic future, and an improved quality of life for all citizens.
2. What is wrong with the way things are now?
Power outages, unreliable infrastructure, inefficient operations, low collection rates, theft, commercial losses, and huge Government subsidies that cannot be sustained.
Private sector investment will help ensure reliability, improve infrastructure, create efficient operating systems and practices, improve collection rates through modern technology and improved billing, reduce theft, reduce commercial losses, and eliminate Government subsidies.
3. What will happen when KEK Electricity Distribution and Supply is privatized?
Customers will notice improved service and reliability. Billing will become more efficient and the overall quality of the customer experience will improve.
4. Why sell the country’s golden assets to outsiders?
KEDS is a constant and recurrent drain on government budget resources, and a cause of frustration and concern to the citizens of Kosovo. The Government is committed to delivering the best possible transaction outcome for the people of Kosovo, in a fully transparent manner. Identifying an appropriate private sector investor for KEDS is critical to our future. This challenge is being undertaken without any prejudice – and we will pursue the best possible scenario for Kosovo.
5. When will all of this happen?
It is in Kosovo’s best interest to privatize KEK Electricity Distribution and Supply as soon as possible – and in accordance with international standards of best practice and transparency. The privatization process is already under way and expected to conclude in 2011.
6. Will my electricity rates go up?
The independent Energy Regulatory Office (ERO) is charged with setting tariff rates which reflect energy pricing appropriate to cost and investment. Markets move, as do tariff rates.
7. What happens if I don’t pay my bill?
Non-payment will result in termination of service.
8. Will the meter reading be improved?
Yes. Metering and meter reading will improve with the installation of tamper resistant meters – which will record honest and accurate use of electricity and convey that information for billing purposes.
9. Will there be any massive changes in the number of employees?
Operating demands will dictate employee numbers. Privately owned companies are inherently more efficient than Government run enterprises – so some change is to be expected.
10. Will the security of supply and service for consumers be improved immediately after privatization?
There should be some early signs of improvement in service. Supply is dependent upon a number of factors that include KEDS service capacity, but also the ability of generators to provide power according to established power purchase agreements. In a short period of time, reliability of supply should be apparent.
11. What will happen with all the debts that consumers owe KEK?
They will remain due and payable.
12. Does the Government follow up on privatized companies?
Investors will be required to perform according to contractually agreed terms and conditions. Any violation of ‘the’ contract could result in a range of actions – some of which are spelled-out in advance within the contract. Investors will be eager to realize success in Kosovo. And, the Government will be eager to see a successful operation for the benefit of the people of Kosovo. All parties will be looking for success – which ultimately benefits the people of Kosovo.
