Dispute settlement procedure against Kosovo opened for illegal State aid to new power plant

Gazeta Express

24/12/2019 13:14

The Energy Community Secretariat sent an Opening Letter to Kosovo addressing its concerns with regard to the illegality and existence of State aid in relation to the new power plant “Kosovo e Re” project.

The Secretariat preliminarily found that certain measures, such as energy and availability payments over 20 years under the power purchase agreement, the sale and transfer of the plant site under market value, a state guarantee, a VAT exemption, and taking over several charges and costs constitute State aid. These measures have not been notified to the competent State aid authority and therefore constitute per se illegal State aid.

“By sending the Opening Letter, the Secretariat initiated a preliminary procedure, the purpose of which is to give Kosovo the opportunity to react to the allegation of non-compliance with Energy Community law within two months and to enable the Secretariat to establish the full background of the case,” it is written in the letter.

The Energy Community Secretariat open letter came after the complaint of Balkan Green Foundation, Institute for Development Policy (INDEP), Instituti GAP, Group for Legal and Political Studies, and CEE Bankwatch Network. /GazetaExpress/