Identifier
Created
Classification
Origin
09PRISTINA482
2009-11-04 16:57:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Pristina
Cable title:
KOSOVO: BELGRADE REFUSES TO DISCUSS KEK SUB-CONTRACT
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UNCLAS PRISTINA 000482
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/PGI, INL, DRL, PRM, USAID
E.O. 12958: N/A
TAGS: ECON ENRG PGOV KV SR
SUBJECT: KOSOVO: BELGRADE REFUSES TO DISCUSS KEK SUB-CONTRACT
AGREEMENT
REF: A) PRISTINA 465
B) PRISTINA 471
C) PRISTINA 481
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
UNCLAS PRISTINA 000482
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/PGI, INL, DRL, PRM, USAID
E.O. 12958: N/A
TAGS: ECON ENRG PGOV KV SR
SUBJECT: KOSOVO: BELGRADE REFUSES TO DISCUSS KEK SUB-CONTRACT
AGREEMENT
REF: A) PRISTINA 465
B) PRISTINA 471
C) PRISTINA 481
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. (SBU) On November 4, two KEK advisors met with Serbian Deputy
Minister for Kosovo Dragan Petkovic and Ministry of Energy State
Secretary Nikola Rajakovic in North Mitrovica. According to our
contacts, the Serbian officials were not prepared to talk seriously
about a commercial sub-contract for a subsidiary of Serbian electric
utility EPS to operate in northern Kosovo. KEK officials had hoped
that Petkovic and Rajakovic would be prepared to discuss a proposed
Memorandum of Understanding (MOU),which KEK had passed to them in
early October and which had been discussed previously. It was
evident, our sources said, that the two men were in an uncomfortable
position and not able to discuss the MOU in detail.
2. (SBU) The MOU describes a series of actions that must be taken to
regularize electricity payments north of the Ibar, which would also
allow EPS to provide metering, bill collection, and other services
on behalf of KEK as a registered Energy Service Company (ESCO) in
Kosovo. Instead, Rajakovic and Petkovic once again raised options
that were previously determined unworkable, basically proposing that
EPS provide electricity services in northern Kosovo without
registering as a licensed sub-contractor. (Note: As previously
reported, such an arrangement would be illegal. The only legal
option under existing law is that EPS registers an entity as a
sub-contractor of KEK. End Note)
3. (SBU) When the fact was discussed that customers in northern
Kosovo now anticipate they will be required to pay for electricity,
KEK advisors noted it would be problematic if anyone actually began
collecting fees before a formal agreement is in place. Rajakovic
conceded that fee collection in the absence of an agreement would be
problematic, and he noted that collection could not reasonably start
before December. At the close of the meeting, the KEK advisors
stated they would welcome a more substantive meeting next week to
discuss the MOU and ESCO sub-contract option for EPS in more detail,
though it is unclear whether such a meeting will take place.
DELL
SENSITIVE
SIPDIS
DEPT FOR EUR/SCE, EUR/PGI, INL, DRL, PRM, USAID
E.O. 12958: N/A
TAGS: ECON ENRG PGOV KV SR
SUBJECT: KOSOVO: BELGRADE REFUSES TO DISCUSS KEK SUB-CONTRACT
AGREEMENT
REF: A) PRISTINA 465
B) PRISTINA 471
C) PRISTINA 481
SENSITIVE BUT UNCLASSIFIED - PLEASE PROTECT ACCORDINGLY
1. (SBU) On November 4, two KEK advisors met with Serbian Deputy
Minister for Kosovo Dragan Petkovic and Ministry of Energy State
Secretary Nikola Rajakovic in North Mitrovica. According to our
contacts, the Serbian officials were not prepared to talk seriously
about a commercial sub-contract for a subsidiary of Serbian electric
utility EPS to operate in northern Kosovo. KEK officials had hoped
that Petkovic and Rajakovic would be prepared to discuss a proposed
Memorandum of Understanding (MOU),which KEK had passed to them in
early October and which had been discussed previously. It was
evident, our sources said, that the two men were in an uncomfortable
position and not able to discuss the MOU in detail.
2. (SBU) The MOU describes a series of actions that must be taken to
regularize electricity payments north of the Ibar, which would also
allow EPS to provide metering, bill collection, and other services
on behalf of KEK as a registered Energy Service Company (ESCO) in
Kosovo. Instead, Rajakovic and Petkovic once again raised options
that were previously determined unworkable, basically proposing that
EPS provide electricity services in northern Kosovo without
registering as a licensed sub-contractor. (Note: As previously
reported, such an arrangement would be illegal. The only legal
option under existing law is that EPS registers an entity as a
sub-contractor of KEK. End Note)
3. (SBU) When the fact was discussed that customers in northern
Kosovo now anticipate they will be required to pay for electricity,
KEK advisors noted it would be problematic if anyone actually began
collecting fees before a formal agreement is in place. Rajakovic
conceded that fee collection in the absence of an agreement would be
problematic, and he noted that collection could not reasonably start
before December. At the close of the meeting, the KEK advisors
stated they would welcome a more substantive meeting next week to
discuss the MOU and ESCO sub-contract option for EPS in more detail,
though it is unclear whether such a meeting will take place.
DELL