Poverty and Distributional Analysis of Electricity Poverty and Protection of Vulnerable Customers in Kosovo
The objective of the report is to inform the preparation of a Government Program for establishing the status of customers in need, the scope of their rights, and protection measures to help them meet demands for electricity in case of electricity t...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/309881614661360439/Poverty-and-Distributional-Analysis-of-Electricity-Poverty-and-Protection-of-Vulnerable-Customers-in-Kosovo http://hdl.handle.net/10986/35265 |
| Summary: | The objective of the report is to inform
the preparation of a Government Program for establishing the
status of customers in need, the scope of their rights, and
protection measures to help them meet demands for
electricity in case of electricity tariff increases. The
report analyzes patterns of electricity consumption,
affordability, poverty and distributional impacts of
hypothetical scenarios of tariff increases. It also reviews
the current protection mechanism with an electricity
subsidy, models the impact of short- and medium-term reform
options, and recommends concrete mitigation measures. In
accordance with Law No. 05/L-085 on Electricity of 2016, the
Government of Kosovo should develop a detailed Program for
establishing the status of customers in need, the scope of
their rights, and protection measures to help them meet
demands for electricity. Electricity accounts for almost 90
percent of the total energy expenditures of households in
Kosovo, and over 97 percent of the energy expenditures of
poor households.1 According to the Law on Electricity2, the
Ministry of Labor and Social Welfare (MLSW) in cooperation
with the Ministry of Energy, Ministry of Finance and in
consultation with the Energy Regulatory Office (ERO) and
other stakeholders of the electricity sector should develop
a social protection program (Program), providing social
benefits to ensure the necessary electricity supply to
customers in need, or providing for support for energy
efficiency improvements, to address energy poverty. Such
measures shall not impede the effective opening of the
electricity market and its functioning. Customers in need
are household consumers, who, due to social status, enjoy
some special rights regarding the supply with electricity,
to be provided in exceptional cases. Commitment to the
development of this Program is taken also with Kosovo’s
Energy Strategy, and with the requirements of the Treaty of
Energy Community as defined by the Third Energy Package3.
The Program should propose an approach to identifying the
electricity poor who are vulnerable and outline short- and
medium-term measures for their protection. |
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