Kosovan State Electricity Utility

ESB International undertook a turnaround contract of Korporata Energjetike e Kosovës (KEK) in Kosovo with the goal to transition KEK into a financially sustainable, self sufficient and market driven company providing reliable energy services throughout Kosovo. KEK was a vertically integrated utility with mining, generation, transmission, distribution and supply activities.

The principal objectives of this contract were to:

• Improve billing and collections
• Increase profitability
• Ensure a reliable supply of electricity
• Build the capacity of local staff
• Improve the safety performance of the company

Services

ESB International assumed executive management and day to day control of KEK. We provided a resident team of executive directors consisting of a Managing Director and Executive Directors for Finance, Human Resources, Transmission, Networks, Corporate Change, Generation, Supply, Coal Production, Corporate Services and Commercial and Corporate Affairs. In addition, ESB International provided short term experts as required for specific technical inputs during the course of the contract.

Achievements
The objectives of the contract were demonstrably met and ESB International made major improvements to the quality of electricity supply in Kosovo.

• Available energy increased by 19.3% over the contract period
• There was a major improvement in supply to consumers. Prior to the ESB International turnaround contract all KEK customers were receiving on average 10 to 12 hours of electricity per day. By the end of the contract 35% of consumers received supply 24 hours per day, 30% received supply for 20 hours per day and the remaining 35% received supply for 12 to 16 hours per day
• Total cash collections increased by 29.3%
• Cash collected versus amount billed increased by 36%
• A 45% reduction in accidents was achieved
• Total losses were reduced by 18.6%
• An independent US Aid funded evaluation of the transition to local management in KEK endorsed the progress achieved during the period of ESB International management of KEK
• The ESB International management team worked closely with international donors to secure funding for specific projects and with KEK staff and management to develop their systems and procedures to progress them towards a modern, service driven, commercial utility