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Turn-Around Management Contract for KEK, Kosovo

The Project

ESB International was appointed as a consultant to take over management control for KEK in Kosovo. The goal was to transition KEK into a financially sustainable, self-sufficient and market-driven company providing reliable energy services.   

KEK was a vertically integrated utility with mining, generation, transmission, distribution and supply activities. The two open-cast lignite mines supply coal to two power stations with a total installed nominal capacity of 1,480 MW. 

The Challenge

When ESB International took over management control, KEK owed over €200M in electricity debt, and more than 50% of all connected consumers were illegal. 

The Solution

  • Data Analytical team plus commercial and revenue protection departments  
  • Incentive and bonus schemes  
  • Increase disconnection effectiveness  
  • Improve customer services through a new call centre  
  • Increase payment points and transition away from cash 

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What we delivered

New regulations focussed on combatting electricity theft. Energy courts and a legal team to improve the prosecution process. A billing and customer management system for KEK. 

The Results

    • Increased annual cash collections by +32%, from €74M  to €97M. 
    • Increased collection against billed percentage from 58% to 79%.  
    • Reduced total losses from 59% to 48% representing a 18.6% improvement over two years. 
    • Reduced debtor days by more than 60%. 

        What we do

        We offer a comprehensive range of solutions for both public and private clients, right through the life cycle of their projects and the energy value chain.