A report by the Kosovo Transmission System and Market Operator (KOSTT) points to possible manipulation of prices for electricity imported into Kosovo. The findings implicate Serbia’s state energy company Elektroprivreda Srbije (EPS) and private trader Noa Energy Trade in coordinated behaviour during cross-border capacity auctions in 2025. The report also raises questions about whether auction mechanisms were used to increase transmission costs beyond the underlying electricity value.
SEECAO auctions for cross-border transmission rights
KOSTT’s analysis examined auction conduct in allocations run by the Southeast Europe Capacity Allocation Office (SEECAO) in Podgorica. These auctions are designed to allocate rights to use transmission lines for electricity flows between jurisdictions, including imports into Kosovo. According to the report, Noa Energy Trade and EPS often participated together in dozens of auctions involving capacity intended for Kosovo.
The report describes this pattern as creating an appearance of concentration and joint action among the same market participants. It links that participation to potential pressure on transmission fees for Kosovo imports. KOSTT’s assessment focuses on how bids were submitted in the cross-border capacity auctions rather than on the underlying electricity trade itself.
January to October 2025 review
The investigation was commissioned by Kosovo’s energy regulator and reviewed auction behaviour from January through October 2025. KOSTT found that on many daily auctions, only two companies—Noa Energy Trade and EPS—submitted bids for transmission lines. The report notes that import charges include both an energy component and a grid-use component.
Because of that structure, the analysis says concentration among buyers can affect overall import costs when the same entities control both sides of the market. KOSTT’s data indicates that similar conditions continued into 2025 in certain auctions where only these two firms were active. The findings are based on observed bidding patterns across daily sessions.
Transmission cost levels reported for 2024 and 2025
KOSTT’s data shows that electricity transmission costs for Kosovo imports sometimes reached €800 per megawatt-hour in 2024. The report characterises those levels as an anomaly associated with distorted market behaviour and weak competitive pressure. It also states that unusually high fees for cross-border capacity continued in 2025 under similar bidding conditions.
In those cases, the daily auctions involved limited participation by the same two companies. The report ties these outcomes to how clearing prices could be influenced when bidding is concentrated. KOSTT’s review therefore connects high transmission fees with the observed structure of bidders in specific auction rounds.
Annual-to-daily resale pattern in capacity auctions
The SEECAO auction mechanism sells annual, monthly and daily transmission rights. KOSTT’s report suggests that Noa Energy Trade acquired capacity on the annual market at prices often slightly above €1 per MWh. It then resold that capacity on daily markets at higher cost, according to the analysis.
In almost all of these daily auctions, EPS was described as the only other bidder alongside Noa Energy Trade. This setup meant both firms could influence the clearing price within those sessions. KOSTT’s findings therefore focus on repeated participation across multiple timeframes of capacity products.
Auction validity and ongoing regulatory scrutiny
Under SEECAO rules, auctions are valid only if more than one buyer participates. KOSTT states that in 2025 the pattern was overwhelmingly limited to just Noa Energy Trade and EPS, even though validity requires multiple buyers. The report describes this as enabling potential price coordination that could increase the transmission component of Kosovo’s import electricity bill.
KOSTT also notes that its report does not determine legal liability. It identifies frequent participation by Noa Energy Trade and EPS as an opportunity for cooperation that may have increased costs for Kosovo’s electricity imports. The findings are being considered in ongoing investigations by Kosovo’s regulatory authorities, according to local media Nova.