Market Operator

Pursuant to requirements of the Law on Electricity , Kosovo must implement a competitive market model in its electricity sector and this task is given by the Law to the entity of “Market Operator” (MO), nominated by the Government and licensed by the Energy Regulatory Office.

The Market Operator operates independently from any enterprise engaged in any electricity activity other than transmission. The primary legislation describes MO as a legal person responsible for the organization and administration of trade in electricity and payment settlements among producers, suppliers, and customers. The Market Operator balances financial supply and demand ahead of time.

Kosovo Market Operator, in general, is responsible for the economic management of the electricity system. In an organized and centralized market model, MO responsibilities, based on the provisions of the law, comprise:

- maintaining records of all contractually-agreed-upon obligations between suppliers and eligible customers;
- receipt of bids for the electricity trading;
- applying the bidding procedure;
- notifying participants in trading and the transmission system operator of the settlement process, planning network access based on the settlement and the price of the remaining energy offered;
- accepting information from the transmission system operator regarding the settlement changes required based on technical capacity and any exceptional situations in the transmission or distribution network;
- setting the final price of energy for each specified time period and notifying all parties involved in trading;
- establishing the accounting system for trading at the final price achieved, and providing information on the actual operation of the generators and availability of generation capacity for each time period;
- public announcement of market trends for any required time interval

As current transitional model does not incorporate central trade, MO retains responsibilities only related to provisions of bilateral trade, such as:

- contracts notification;
- nomination;
- settlement and invoicing;
- interconnection capacity allocation, etc.

KOSTT performs its functions with due respect for the principles of transparency, objectivity and independence.