Energy Community Secretariat launches dispute resolution procedure over "Kosova e Re" project
24/12/2019
On 20 December 2019, the Energy Community Secretariat (ECS) has launched an open letter to the Kosovo institutions regarding the project for the construction of the “Kosova e Re” power plant as part of the dispute settlement procedure against Kosovo. In this letter, SKE raises concerns about the presence of illegal state aid in the project in question, stating as a State aid the agreement of Kosovo institutions to purchase electricity for 20 years, selling and transferring state property under the market price, VAT exemption, and Kosovo taking over other charges and expenses. The ECS has reached this stage where in case that the project does not comply with the rules of the Energy Community Treaty, the case may be brought before the Council of Ministers. The decision of the Council of Ministers may result in the suspension of Kosovos voting rights and its exclusion from this Council.
In a report published in February 2019, GAP Institute in collaboration with the Vienna Institute for International Economic Studies (wiiw) analyzed the "Kosova e Re" project from the state aid aspect where concerns similar to those of the ECS were raised, where we also emphasized the possibility for the ECS to open the procedure for resolving the dispute against Kosovo. The report also assessed that Kosovo institutions had to notify the state aid authority in Kosovo in order for the same to review the notification and assess whether the measures are in accordance with national state aid law. Due to the negligence and unwillingness of the Kosovo institutions to address the above issues, GAP Institute together with BGF, GLPS, INDEP, Bankwatch Network and Germanwatch, in May 2019 lodged a complaint regarding this project, with the Energy Community Secretariat.
Part from the report:
“If the project is approved, Kosovo risks suspension of voting rights at the Ministerial Council of the EC Secretariat, impairs the chances of EU accession given that it does not withhold the SAA agreement and receives lawsuits at the national courts for breaching the national law on State aid”.
See the link for full report: https://bit.ly/2MkaCZK
Link of news of Energy Community: https://bit.ly/2MkzYGU
