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Economic regulators

The EU Pillar also works closely with a number of economic regulators including:

  Civil Aviation Regulatory Authority (CARO);
  Energy Regulatory Office (ERO);
  Frequency Management Office (FMO);
  Independent Commission for Mines and Minerals (ICMM);
  Railway Regulatory Office (RRO); and
•  Water and Waste Regulatory Office (WWRO).

Civil Aviation Regulatory Office (CARO)

The Civil Aviation Regulatory Office (CARO) was established by UNMIK Regulation No. 2003/18 ("On the Establishment of a Civil Aviation Regulatory Office for Kosovo"), and is an independent body responsible for regulating civil aviation issues in Kosovo. CARO performs its duties in conjunction with the Icelandic Civil Aviation Administration (ICAA), consequent to primary legislation in the aviation sector that stipulates that UNMIK itself cannot perform any aviation-related functions that, under international law, fall within the authority of sovereign states. An agreement between UNMIK and the Government of Iceland for the involvement of ICAA in performing such functions was signed on 1 April 2004.

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Energy Regulatory Office (ERO)

The Energy Regulatory Office was established in accordance with UNMIK Regulation No. 2004/20 ("On the Promulgation of a Law adopted by the Assembly of Kosovo on the Energy Regulator"), as an independent body in charge of regulating activities in the energy sector, including Electricity, Heating and Gas, all with the aim of achieving a transparent and non-discriminatory energy market based on free market principles. Amongst other things, the ERO has the authority to issue licenses and monitor license compliance for energy enterprises, approve tariffs for public service activities, impose public supply obligations, resolve disputes between customers and energy enterprises, and issue secondary legislation in the energy sector.

Ongoing ERO’s objectives cover developing an institutional arrangement in accordance with the regional energy market; already issued Secondary Legislation: Statute of ERO, Code of Ethics and Conduct, Rule on Pricing for the Electricity Sector, Tariff Methodology for the Electricity Sector, Dispute Settlement Procedures, and Schedule of Fees; further issuing the prepared Rules on licensing, general conditions for energy supply, and disconnection procedures; monitoring the restructuring, legal unbundling, and incorporation of energy utilities; and developing and strengthening the technical, managerial, economic and market review/analyses capabilities of the ERO’s local staff. More information can be found on ERO’s website: www.ero-ks.org.

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Frequency Management Office (FMO)

Frequency Management is a reserved power of the SRSG, as per UNMIK Regulation 2001/9 ("On a Constitutional Framework for Provisional Self-Government in Kosovo" – the Constitutional Framework). The Frequency Management Office exercises administrative control and authority over frequency management in Kosovo. Its functions and duties are set out in Administrative Direction No. 2004/19. The main responsibilities of the FMO are to oversee the Kosovo Table of Frequency Allocations and Utilization, manage the reserved part of the radio frequency spectrum, cooperate with the Telecommunications Regulatory Authority (TRA) for an efficient use of the transferred part of the radio frequency spectrum, and to monitor the radio frequency spectrum. The FMO consists of two sections: a Section for the Planning and Radio Monitoring of the Frequency Spectrum, and a Licensing Section.

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Independent Commission for Mines and Minerals (ICMM)

The Independent Commission for Mines and Minerals (ICMM) was established by UNMIK Regulation No. 2005/2 ("On the Establishment of the Independent Commission for Mines and Minerals"), and is governed by a Governing Board. The ICMM oversees and administers all activities in the field of mining and mineral extraction in Kosovo. In carrying out its duties, the ICMM applies UNMIK Regulation No. 2005/3 ("On Mines and Minerals in Kosovo").As exploitation licensees pay royalties, the ICMM is a net revenue earner for the Kosovo Consolidated Budget (KCB). It should be noted that the mining sector constitutes one of Kosovo’s main economic comparative advantages.

The ICMM has thus far approved 53 exploration and exploitation licenses. 18 major licenses with a total gross in situ value (the value of the mineral in the ground) of approximately six billion euro were handed out in July alone. The ICMM has prepared its own business plan for 2006 and beyond, aimed at attracting foreign direct investment. Its main points are related to ongoing lignite mining and the opening of new lignite mines.

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Railway Regulatory Office (RRO)

The establishment of the Railway Regulatory Office (RRO) is pending the promulgation of a draft regulation that was submitted to the UNMIK Office of The Legal Adviser (OLA) on 10 July 2004. The RRO will be established as an independent regulatory body. The Ministry of Transport and Communications (MTC), in cooperation with stakeholders including UNMIK Railways, is currently working on a policy that outlines the objectives for the development of railways in Kosovo.

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Water and Waste Regulatory Office (WWRO)

The Water and Waste Regulatory Office (WWRO) was legally established by UNMIK Regulation No. 2004/49 ("On the Activities of Water, Wastewater and Waste Services Providers"), as an independent body exercising the functions of an economic regulatory authority for all Publicly and Socially Owned Enterprises that are providers of water, wastewater, and solid waste services (including solid waste collection and solid waste disposal services) in Kosovo. WWRO is accountable to the SRSG who appoints the WWRO Director and the Deputy Director.

The legal mandate of WWRO consists of: issuing, amending, extending and revoking service licenses; setting up and enforcing service standards; setting up or approving tariffs payable by customers; regulating the mutual rights and obligations of service providers and their customers through Customers Charters; establishing and enforcing a regime of disconnections in case of non-payment; approving a regime for the settlement of past debts owed by customers; protecting customers - particularly ethnic minorities and other vulnerable groups - from discrimination in the provision of services.

In 2005, WWRO issued service licenses to 14 POEs for water and wastewater services and to 13 POEs for solid waste collection services. In future, the WWRO governance structure shall consist of a Board of Directors. The Board of Directors will be composed of local experts and will be accountable before the Assembly of Kosovo, when the SRSG decides on the transfer of reserved powers to the PISG.

For more information, visit the Documentation section of this site.

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