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14.02.2014 15:44

Electricity System Operators of Serbia and Kosovo Work Towards Normalising Bilateral Relations

Based on its provisions, further arrangements will be made to ensure that KOSTT joins ENTSO-E as an independent control area, participates in the European-wide compensation mechanism among transmission system operators (ITC) and effectively allocates capacities on its interconnectors with neighbouring Contracting Parties of the Energy Community

AUTHOR: publics.bg

© energy-community.org

A Framework Agreement governing the operational and commercial relations between EMS of Serbia and KOSTT of Kosovo has been signed by both companies’ general managers. The legally-binding Agreement constitutes a milestone in normalising the relations between the two electricity system operators. Based on its provisions, further arrangements will be made to ensure that KOSTT joins ENTSO-E as an independent control area, participates in the European-wide compensation mechanism among transmission system operators (ITC) and effectively allocates capacities on its interconnectors with neighbouring Contracting Parties of the Energy Community - Serbia, Albania, FYROM, Montenegro, Bosnia and Herzegovina. The Agreement is also likely to bring to an end a long-standing dispute between the Secretariat and Serbia in Case ECS-3/08 in the near future. KOSTT was licensed in 2006 under legislation promulgated by UNMIK to operate the transmission system within that Contracting Party. A set of bilateral agreements governing the relationship between KOSTT and EMS inter alia provides for mutual compensation for electricity transits for the purposes of the respective other party to and from third parties. With the application of multilateral Inter-TSO Compensation (ITC) Agreements in 2004, EMS ceased to compensate KOSTT for electricity transits. It does not forward to KOSTT the compensation received under the ITC Agreements. Furthermore, KOSTT does not receive the revenues from allocating transmission capacity on the interconnectors with the countries adjacent to UNMIK. That allocation is made by EMS.

The negotiations of the Framework Agreement were facilitated by the Secretariat’s Deputy Director Dirk Buschle and his team together with experts from the European Commission. Director Janez Kopač of the Secretariat expressed his satisfaction about the signature: “This Agreement is not only of bilateral relevance. It will unblock many serious obstacles which so far have prevented regional integration of the electricity markets in South East Europe.”