Kosovo Does Not Plan Amnesty for Electricity Non-Payers

Stuck for ideas on how to put Kosovo's power company on a firmer financial footing and failing to collect debts of power consumers, Kosovo's government is not considering to erase the debt of around 350 million euro.

"There are no proposals or any discussions at all to wipe out the debts of power consumers in Kosovo and it is not expected that the government will do so," Gezim Baxhaku, political advisor of economic development minister told Balkan Insight.

He added that the government is preparing to privatise Kosovo's Energy Corporation, KEK, and is seeking ways as how to deal with the debt prior to selling it.

"But certainly we will not include the debts for potential bidders," Baxhaku said.

Baxhaku admitted that KEK is having huge difficulties to collect the debts that have been acumulated since 1999.

In April, parliament in neighbouring Albania erased the debts of some 270,000 poorer families who had run up a collective bill worth 400 million US dollars.

KEK has meanwhile said it is up to the government - the company's main share holder to decide whether to erase the debts.

Viktor Buzhala, KEK spokesperson, told Balkan Insight that no decision had been taken.

“I cannot speculate on whether such a decision would have positive impact in terms of the behaviors of our consumers,” he said, referring to the amnesty idea. 

In meantime, the company is continuing its policy of cutting off electricity to homes that owe more than 150 euro. 

The KEK was focusing on disconnecting big debtors "but this does not mean an amnesty for the others,” Buzhala insisted. “Every consumer should pay their bills if they don’t want to be disconnected,” he added.

The latest actions taken by the KEK had shown a positive effect, allowing the company to collect 74. 5 million euro in the first four months of 2011, an increase of 15 per cent compared to the last four months of last year.