Final Report Follow Up Assessment On Impact From Irregular Electricity Electricity Supply On Kosovar Businesses PDF

FOLLOW-UP ASSESSMENT ON IMPACT FROM
IRREGULAR ELECTRICITY SUPPLY ON KOSOVAR

BUSINESSES
November 2015
FOLLOW-UP ASSESSMENT ON IMPACT FROM IRREGULAR ELECTRICITY SUPPLY ON KOSOVAR BUSINESSES
FOLLOW-UP ASSESSMENT ON IMPACT FROM

IRREGULAR ELECTRICITY SUPPLY ON KOSOVAR
BUSINESSES
FINAL REPORT
IMPLEMENTED BY:
ASSESSMENT COMMISSIONED BY:
Disclaimer
The author’s views expressed in this publication do not necessarily reflect the views of the
United States Agency for International Development or the United States Government.
pg. 2
ACRONYMS
C/E/T Construction, Education, Transportation
FDI Foreign Direct Investments
ICS U.S. Mission's Integrated Country Strategy
KEDS Kosovo Electricity Distribution and Supply Company
MWh Megawatt hours
TAK Kosovo Tax Administration
UNDP United Nations Development Programme
USAID U.S. Agency for International Development
pg. 3
ACKNOWLEDGEMENTS
Project Team:
Valmira Rexhëbeqaj (Team Leader), Berat Abdiu (Financial Modeller), Valon Feka
(Fieldwork Manager)
Report Writing: Kujtim Koci
The research team would like to express their gratitude to USAID for entrusting us
with this follow-up assessment on impact from irregular electricity supply on Kosovar
businesses.
We would also like to thank KEDS and TAK for providing supplementing data and
invaluable support throughout the assessment process.
Finally, special thanks go to the business community, and the 560 interviewed
businesses in particular, for their willingness and patience to share their data and
opinions with us.
pg. 4
TABLE OF CONTENTS
ACRONYMS ..............................................................................................................................................................3
ACKNOWLEDGEMENTS .....................................................................................................................................4
EXECUTIVE SUMMARY ......................................................................................................................................7
Study Approach and Methodology ........................................................................................................7
Report Results ..................................................................................................................................................8
1. INTRODUCTION ..............................................................................................................................................9
Purpose of the study ..................................................................................................................................10
Definitions ........................................................................................................................................................10
2. BACKGROUND ................................................................................................................................................12
2.1 KOSOVO’S PRIVATE SECTOR .........................................................................................................12
2.1.1 Private Sector Size Segmentation .....................................................................................12
2.1.2 Private Sector Industry Segmentation ...........................................................................12
2.2 KOSOVO’S ELECTRICITY SECTOR ...............................................................................................13
2.2.1 Energy demand .............................................................................................................................13
3. SURVEY RESULTS ........................................................................................................................................14
3.1 EXPENSES AND LOSSES DUE TO UNRELIABLE ENERGY SUPPLY ..............................14
3.1.1 Average Annual Expenses ......................................................................................................14
3.1.2 Average Annual Estimated Monetary Losses ..............................................................18
3.2 PRIVATE SECTOR BUSINESS IMPLICATIONS ......................................................................20
3.2.1 Analysis by Business Size .......................................................................................................20
3.2.3 Financial Impact to Businesses ..........................................................................................22
3.2.4 Analysis by Industry Segment.............................................................................................22
3.2.5 Up Close: Micro and Small Enterprises ...........................................................................24
3.2.6 Up Close: Medium and Large Businesses ......................................................................26
3.2.6 Up Close: Production Sector .................................................................................................27
3.3 ELECTRICITY END USAGE................................................................................................................28
3.4 ALTERNATIVE SOURCES OF ELECTRICITY.............................................................................29
3.4.1 Usage of alternative power sources .................................................................................29
3.4.2 Irregular electricity supply affects product prices ..................................................32
3.4.3 Irregular electricity supply impacts business investment choices ................33
3.5 ROLE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY SOURCES ....................35
3.5.1 Businesses employ energy efficiency strategies ......................................................35
3.5.2 Firms are open to renewable energy sources ............................................................35
APPENDICES ........................................................................................................................................................37
APPENDIX I: STUDY APPROACH AND ASSUMPTIONS ............................................................37
Report Assumptions and Limitations ...........................................................................................37
APPENDIX II: QUANTITATIVE SURVEY QUESTIONNAIRE ...................................................38
APPENDIX III: SURVEY TABLES OF RESULTS ..............................................................................47
pg. 5
LIST OF TABLES AND FIGURES
Table 1. Business Size by Annual Turnover ..........................................................................10

Table 2. Number of businesses in Kosovo and survey disaggregated by business size ........12
Table 3. Number of businesses in Kosovo and survey disaggregated by industry ................12
Graph 1. Energy Consumption & Reduction Patterns in Kosovo, KEDS, 2015 .......................13
Table 4. Average Annual Alternative Electricity Supply Expenses per company by business
size ......................................................................................................................................15
Table 5. Average Annual Costs to Replace Losses per company by business size .................16
Table 6. Total Annual Expenses per company by business size ............................................16
Table 7. Average Annual Alternative Electricity Supply Expenses per company by industry .17
Table 8. Average Annual Costs to Replace Losses per company by industry ........................17
Table 9. Total Expenses per company by industry ................................................................17
Graph 2. Distribution of expenses for an average business in Kosovo .................................18
Table 10. Average Losses per company by company size .....................................................19
Table 11. Average losses per company by industry ..............................................................20
Table 12. Mean annual costs and losses by size ...................................................................20
Table 13. Turnover and Electricity Related Average Annual Expenses by Company Size ......21
Table 14. Turnover and Electricity Average Annual Related Expenses by Industry ..............23
Graph 3. Share of expenses for micro businesses ................................................................24
Graph 4. Share of expenses for small businesses .................................................................25
Table 15. Survey Response to Importance of Services to Business Operations ....................25
Graph 5. Share of expenses for medium businesses ............................................................26
Graph 6. Share of expenses for large businesses .................................................................27
Table 16. Percentage of companies that use electricity by function .....................................28
Graph 7. Percentage share of certain functions in the electricity bill (n = 560) ...................28
Graph 8. Average days per month on alternative power sources – by business size ............29
Table 17. Average usage hours per business by company size .............................................29
Graph 9. Types of alternative power supply used for business operations ...........................30
Table 18. Types of alternative power supply used for business operations – by business size
............................................................................................................................................30
Table 19. Types of alternative energy supply used for business operations – by business
sector ...................................................................................................................................30
Graph 10. End use of alternative energy supply for an average business in Kosovo ............31
Table 19. Importance of electricity quality vs. power outage ...............................................31
Table 20. Types of Electricity Quality Issues that Businesses Faced (n = 145) ....................32
Table 21. Survey responses to how much final price has risen due to alternative sources of
energy .................................................................................................................................32
Table 22. Survey Responses to Investment/Expansion Options with Reliable Electricity
Supply: Hire More Workers ..................................................................................................33
Supply: Service Line/Product Offering .................................................................................33
Supply: Stay Open Longer Hours ..........................................................................................34
Supply: Open Additional Stores ............................................................................................34
Graph 11. Energy efficiency strategies .................................................................................35
Graph 12. Renewable energy sources: Awareness and readiness to consider ......................36
pg. 6
EXECUTIVE SUMMARY
Energy shortages and the irregular electricity supply have been identified by USAID
and the U.S. Mission's Integrated Country Strategy (ICS) as a persistent issue in
Kosovo which impact the country's ability to achieve stable, long-term economic
growth. The latest study conducted on this issue was carried out in 2013 and it
quantified the overall impact of irregular electricity supply on Kosovo’s businesses.
Since then, USAID commissioned a follow-up assessment in order to provide the
central government additional support and feedback for the implementation of its
Energy Strategy.
Study Approach and Methodology
The study used a quantitative approach to collect data on the effects of power outages
and low quality of electricity supply on Kosovo’s businesses. A total of 560 businesses
were interviewed across Kosovo after being categorized by size and being randomly
selected from a Kosovo Tax Administration (TAK) database of 48,617 active
registered businesses in Kosovo. Supplementary data from TAK and KEDS were used
in the analysis for the estimation of energy related costs and the total impact of
irregular electricity supply to the Kosovo private sector.
The total costs incurred due to irregular electricity supply have been categorized into
three groups:
i. Alternative Power Supply Expenses: generator and inverter purchases,
maintenance and fuel costs for generators and inverters, and monetary
estimates of worker hours spent on dealing with generator related issues;
ii. Losses: monetary value of the destroyed/damaged raw materials/inputs,
monetary residual value of machinery/equipment that was
destroyed/damaged, loss in sales revenue, monetary value of losses in data
and labor productivity, and other losses related to the unreliable supply of
electricity;
iii. Additional Costs (to replace losses): the replacement cost of raw
materials, the repair/replacement cost of damaged machinery, investments
needed to reinstate the revenue generating services/product orders that were
disrupted, and investments needed to repurchase/recreate lost data.
The following formula was used to calculate the total cost of irregular electricity
supply to businesses:
Total cost to businesses from irregular electricity supply = Losses + Total

expenses (Alternative power supply expenses + Additional costs to replace losses)
pg. 7
Report Results
The findings of this study show that a considerable financial burden is placed on
Kosovo’s businesses due to the irregular supply of electricity.
The main takeaways from this study can be summarized as follows:
 Kosovo businesses incur about 296 million Euros on an annual basis in

additional costs due to irregular energy supply, which is 17.5 percent lower
than the sum reported in the 2013 assessment (359 million Euros)1.
 Load shedding levels have dropped considerably, from 257,975 MWh in 2011
(4.5% of consumption) to 91,934 MWh in 2014 (1.7% of consumption)2
 Annually, the typical business in Kosovo loses an average of 1,982 Euros in
raw materials, equipment, business inputs, inventory, etc. due to energy cuts
and poor quality. Additionally, it spends 2,642 Euros in alternative sources of
power supply, and another 1,462 Euros on replacing/repairing losses. In
total, a business operating in Kosovo incurs approximately 6,086 Euros of
additional costs on annual basis due to power outages and poor quality of
electricity supply mainly related to voltage fluctuations.
 The smaller a business is, the larger is the additional cost as a proportion of
the total turnover. Additional costs due to electricity constraints represent
9.66 percent of an average business’ annual turnover, 11.6 percent of its
expenses, and 57.91 percent of profits.
 Businesses in the production sector are the most affected ones by power
supply issues since their energy related costs as a percentage of turnover,
profit and expenses, are significantly higher than that of businesses in other
industries.
 More than half of the interviewed firms stated that they do not use any other
energy source (59%). Generators were used by 36 percent of the interviewed
companies, and inverters were used by five percent of them.
 Seventy percent of businesses declared that power outages are more
important than electricity quality.
 One in four businesses stated that they face problems related to electric
energy, with 75 percent of them identifying under voltage as the problem.
 Businesses reported an average of four percent increase in the prices of their
products due to the usage of alternative sources of electricity supply.
 One in five businesses declared that they would hire more workers if they had
regular and reliable electricity supply.
1
Effect of Unreliable Power Supply on Kosovar Businesses, USAID Kosovo, August 2013
2
KEDS Data, 2015
pg. 8
1. INTRODUCTION
Kosovo’s GDP as of 2014 is estimated to be 5,506 billion Euros3. With a GDP per
capita of 2,989 Euros4, Kosovo ranks among the lower middle income countries
according to the World Bank definition. Around 29 percent of the population lives in
poverty, and about of 10 percent live in extreme poverty5. These figures place Kosovo
as the poorest country in the region.
Despite having a favorable geographic location, ties with Western European
countries, and low labor costs, Kosovo has not been able to attract major foreign
investments. Shortcomings in the areas of productivity, connection to markets,
access to finance, workforce development and the general business environment
have hindered Kosovo’s potential to draw foreign investments. The problems in the
energy sector are the central issues within the area of business environment6.
Kosovo's fragile electricity infrastructure and inability to modernize the system has
challenged country's sustained economic growth and welfare of its citizens, while also
affecting the social and political stability7.
In this regard, USAID/Kosovo strategy8 centers its Development Objective 2 on
diversifying the economy and increasing the private sector’s contributions to
economic growth by promoting a more favorable business environment, by
emphasizing private sector growth, and by continuing to address the energy needs
of the country. Its Sub-Intermediate Result 2.3.1 focused on securing a more stable
energy supply, which is critical to the overall economic growth and welfare of citizens.
Through a study carried out in 2013, USAID was able quantify the overall impact of
irregular electricity supply on Kosovo’s businesses. In order to provide further support
to the Kosovo Government for the implementation of its Energy Strategy9, USAID
commissioned UBO Consulting to conduct a follow-up assessment to evaluate the
effect of electricity load shedding and voltage fluctuations on Kosovo’s business
community.
3
IMF, Staff Paper , July 2015
4
Ibid
5
Extreme poverty is defined as living on less than 2.5 USD a day.
6
Sector Assessment & Selection Report – USAID EMPOWER Private Sector, December 2014
7
Energy PAD
8
Kosovo: 2014 – 2018 Country Development Cooperation Strategy, USAID
9
Energy Strategy of the Republic of Kosovo 2009 - 2018, Ministry of Energy and Mining, 2009
pg. 9
Purpose of the study
This report aims at providing information regarding the overall impact of irregular
electricity supply on Kosovo’s private sector. Data presented in this report give
relevant stakeholders a picture on how irregular electricity supply and voltage
fluctuations affect Kosovo’s firms, and how firms modify their operations to meet
these difficulties.
This information is necessary to assist the government and international donor

organizations to respond with measures that can improve the supply of electricity,
which in turn would boost the profitability and competitiveness of firms operating in
Kosovo.
Definitions
Irregular electricity supply refers to both interrupted electricity supply as a result

of load shedding as well as poor quality resulting from voltage fluctuations. These
terms are used distinctly in cases where the impact of interrupted electricity supply
or quality is discussed separately. However, they are aggregated and collectively are
referred to as “irregular electricity supply” throughout the report.
Quality of electricity supply refers to the under voltage and over voltage of the
electricity supplied to businesses.
Turnover is used as a proxy for revenue and it is reported at an annual level. The
turnover estimates are both self-reported and provided by TAK. They are aggregated
by industry size and segment in order to maintain the confidentiality of the business
data.
Company size is based on the annual turnover of the firm. The businesses are
grouped into the following size categories: micro, small, medium, and large. The
annual turnover associated with each business size is as follows:
Table 1. Business Size by Annual Turnover
Annual Turnover Categories (defined

Business Size
by annual turnover amounts in 2011)
Micro < 5,000 Euros
Small 5,001 – 50,000 Euros
Medium 50,001 – 1,000,000 Euros
Large > 1,000,001 Euros
pg. 10
Industry designation is based on the self-reported industry designation in the

survey, based on the same list from TAK. The report and survey segments businesses
into the following industry categories:
 Commerce
 Production;
 Services;
 Construction, Education, and Transportation (C/E/T);
 Other
Alternative electricity sources refers to the substitute electricity sources used by

businesses in Kosovo. These include but are not limited to:
 Fuel consuming generators of all sizes;
 Inverters running on batteries
Renewable energy sources refer explicitly to renewable energy technologies used

for electricity, such as solar, wind, geo-thermal, biomass, and biofuel.
pg. 11
2. BACKGROUND
2.1 KOSOVO’S PRIVATE SECTOR
2.1.1 Private Sector Size Segmentation
According to TAK data, currently there are 48,617 registered businesses functioning
in Kosovo. Micro businesses represent 64 percent of the total business population in
Kosovo, followed by small businesses (20%), medium businesses (14%), and lastly
large businesses with only 1.3 percent10. The survey followed a similar distribution of
interviews, with around 86 percent of the interviewed respondents representing
micro and small businesses and 14 percent of them representing medium and large
business entities.
Table 2. Number of businesses in Kosovo and survey disaggregated by business size
Business Annual Turnover Survey Sample Kosovo Economy

size Categories N = 560 % N = 48617 %
Micro < 5,000 Euros 317 56.6 31,134 64.0
Small 5,001 – 50,000 Euros 167 29.8 9,902 20.4
Medium 50,001 – 1,000,000 Euros 67 12.0 6,954 14.3
Large > 1,000,001 Euros 9 1.6 627 1.3
2.1.2 Private Sector Industry Segmentation
In this report, businesses have been aggregated in five categories in order for each
category to represent a large enough sample for comparative purposes. The following
table presents the distribution of interviews as well as the total business population,
all segmented by the industry they operate in.
Table 3. Number of businesses in Kosovo and survey disaggregated by industry
Survey Sample Kosovo Economy

Business industry
N = 560 % N = 48617 %
Commerce 237 42.3 20647 42.5
Production 76 13.6 6626 13.6
Services 143 25.6 10303 21.2
Construction, Education, and
51 9.1 6913 14.2
Transportation (C/E/T)
Other 53 9.5 4128 8.5
10
Definition/Disaggregation of businesses by size and sectors was kept the same as in the 2012 Assessment, to
allow for comparison between both reports
pg. 12
2.2 KOSOVO’S ELECTRICITY SECTOR

Over the years, Kosovo faced continuous problems in its electricity sector. Unreliable
electricity supply and overreliance on imports are among the main issues related to
poor infrastructure and these have in turn led to considerable losses11. Unreliable
electricity supply has hindered Kosovo’s economic development. As pointed out in
UNDP’s Kosovo Human Development Report 201212, lack of electricity over the years
has particularly affected the business environment in Kosovo by hindering the
establishment of industries that can generate sustainable employment and
discouraging Foreign Direct Investments.
Due to constant issues in this regard, Kosovo government decided to privatize the
state-owned electricity distribution company, Kosovo Electricity Distribution and
Supply (KEDS). A Turkish consortium, Limak-Çalik, won the tender in 2012 to
purchase KEDS for 26.3 million euros, whilst pledging to invest around $390 million
in KEDS’ modernization.
2.2.1 Energy demand
Both energy consumption and load shedding levels have been decreasing over the
last few years in Kosovo. Whilst in 2011, the total energy consumption was 5,728,537
MWh, in 2014 it dropped to 5,503,685 MWh. Load shedding levels have dropped as
well, from 257,975 MWh in 2011 (4.5% of consumption) to 91,934 MWh in 2014
(1.7% of consumption)13. The rise in load shedding from 2013 to 2014 can be largely
attributed to the Kosovo A’s plant blast back in June 201414, as in the following three
months load shedding levels increased significantly, together accounting for 42
percent of the total load shedding in the year of 2014.
5,728,537 5,609,824 5,620,130 5,503,685
257,976 145,200 91,934

51,891
2011 2012 2013 2014

Consumption (MWh) Load shedding
Graph 1. Energy Consumption & Reduction Patterns in Kosovo, KEDS, 2015
11
Public-Private Partnership Stories – Kosovo: Electricity Distribution, International Finance Corporation, 2013
12
Kosovo Human Development Report 2012 – Private Sector and Employment, UNDP, 2013
13
KEDS Data, 2015
14
http://www.reuters.com/article/2014/06/06/us-kosovo-powerstation-blast-idUSKBN0EH10N20140606
pg. 13
3. SURVEY RESULTS
3.1 EXPENSES AND LOSSES DUE TO UNRELIABLE ENERGY

SUPPLY
3.1.1 Average Annual Expenses
Businesses were asked to provide an annual average estimate for the additional
expenses and losses due to unreliable electricity in order to attain a better
understanding of the impact of irregular electricity supply. Businesses provided their
estimates in from a list of business expense categories that was presented in the
survey interview. The following tables illustrate the reported average annual amounts
for each of the expenses listed below:
(a) Generator Purchases by businesses depreciated in five years (This is the

applicable law in Kosovo on the amortization structure of equipment.) -
annualized
(b) Inverter purchases by businesses depreciated in five years (This is the
applicable law in Kosovo on the amortization structure of equipment.) –
annualized
(c) Other equipment purchases by businesses depreciated in five years (This
is the applicable law in Kosovo on the amortization structure of equipment.)
(d) Annual Maintenance Costs for generators and other equipment
(e) Annual Average Fuel Costs
a. It was estimated by multiplying the average monthly amount from April
to September by six months, and likewise for the average monthly
amount from October to March. This bi-annual average approach was
used to take into account fuel cost fluctuations based on seasonal
demand.
(f) Generator Related Issues (worker hours)
a. The monetary amount was estimated as a per hour rate from the
division of the average salary with average working hours per month,
and calculated by accounting for the loss of work hours due to resolving
generator issues.
pg. 14
(g) Additional costs to replace losses to:

a. Production raw materials/ inputs – Refers to the replacement of the raw
materials (and inventory as applicable) used in production or providing
a service
b. Replacement/repair of equipment and machinery – Refers to the
replacement or repair cost of damaged machinery due to voltage
fluctuations or disruptions
c. Revenue loss prevention – Refers to the investment needed to reinstate
revenue generating services or product orders that were disrupted
during power outages
d. Data – Refers to the investment needed to repurchase lost data, or effort
needed to recreate data that was lost due to power outages
All the aforementioned expenses are referred to as “total expenses” in the table
below. The Average column shows the mean value for a business at a national level,
after using proper weights to ensure the adequate representation of business size
categories.
As expected, the survey results showed that a large business spends the most on
average in alternative sources of electricity supply, whereas a micro business spends
the least. On average, a nationally representative business in Kosovo spends
approximately 2,642 Euros per year on securing alternative sources of electricity
supply, fuel and maintenance costs, and other generator related expenditures.
Table 4. Average Annual Alternative Electricity Supply Expenses per company by business size
Micro Small Medium Large Average

Generator purchase € 376 € 778 € 3,061 € 5,093 € 893
Inverter purchase € 254 € 232 € 160 € 200 € 235
Maintenance (generators & invertors) € 166 € 170 € 466 € 1,333 € 222
Fuel costs (Apr-Sep) € 315 € 544 € 629 € 1,800 € 444
Fuel costs (Oct-Mar) € 614 € 667 € 1,075 € 3,000 € 723
Generator related issues (worker hours) € 93 € 149 € 135 € 446 € 125
Expenses Total € 1,817 € 2,539 € 5,526 € 11,872 € 2,642
Businesses were further asked to estimate their costs in the last 12 months in order
to restore/replace the damaged/destroyed items due to electricity cuts and poor
supply quality. Findings indicate that on average, firms’ expenditures went largely
towards replacement of products/raw material and repair or replacement of
equipment/machinery.
pg. 15
The survey found that a nationally representative business spends an average of

1,462 Euros on an annual basis to replace losses caused by irregular electricity
supply. Again, the large businesses declared the highest amounts of costs in this
regard.
Table 5. Average Annual Costs to Replace Losses per company by business size
Product/Raw material € 397 € 221 € 1,180 € 1,567 € 457
Equipment/machinery repair or
€ 221 € 193 € 630 € 10,500 € 427
replacement
Revenues for production of goods or
€ 203 € 188 € 189 € 3,700 € 253
services provision
Inventory € 191 € 214 € 473 € 238 € 233
Data and information (loss in computer

€ 63 € 11 € 76 € 25 € 49
data from electricity)
Other € 71 €2 € 31 €- € 44
Total € 1,147 € 829 € 2,579 € 16,029 € 1,462
Put together, total electricity related expenses amount to 4,104 Euros/year per
business in Kosovo. The table below shows the distribution of total expenses by
business size.
Table 6. Total Annual Expenses per company by business size
Alternative electricity supply expenses € 1,817 € 2,539 € 5,526 € 11,872 € 2,642
Additional costs to replace losses € 1,147 € 829 € 2,579 € 16,029 € 1,462
Total Expenses € 2,963 € 3,368 € 8,105 € 27,902 € 4,104
When expenses on alternative electricity sources and costs to replace losses are
disaggregated by industry, the results show that C/E/T and production businesses
are the ones that incur the highest costs in terms of usage of alternative sources of
electricity supply and replacement of losses due to irregular electricity supply.
pg. 16
Table 7. Average Annual Alternative Electricity Supply Expenses per company by industry
Trade Production Services C/E/T Other Average

Generator € 711 € 1,377 € 868 € 1,568 € 426 € 893
Inverter € 237 € 232 € 230 € 238 € 247 € 235
Maintenance generator &
€ 197 € 292 € 222 € 302 € 151 € 222
invertor
Fuel costs (Apr-Sep) € 462 € 448 € 425 € 462 € 393 € 444
Fuel costs (Oct-Mar) € 739 € 656 € 707 € 777 € 741 € 723
Generator Related issues
€ 121 € 112 € 121 € 199 € 109 € 125
(worker hours)
Expenses Total € 2,467 € 3,118 € 2,573 € 3,546 € 2,067 € 2,642
Table 8. Average Annual Costs to Replace Losses per company by industry
Product/Raw material € 366 € 837 € 427 € 533 € 322 € 457

Equipment/machinery repair
€ 330 € 548 € 523 € 651 € 213 € 427
or replacement
Revenues for production of
€ 200 € 291 € 327 € 328 € 166 € 253
goods or services provision
Inventory € 198 € 321 € 198 € 220 € 370 € 233
Data and information (loss in
computer data from € 45 € 45 € 55 € 52 € 51 € 49
electricity)
Other
€ 44 € 49 € 38 € 49 € 53 € 44
Total
€ 1,182 € 2,092 € 1,567 € 1,833 € 1,175 € 1,462
Table 9. Total Expenses per company by industry
Total expenses € 2,467 € 3,118 € 2,573 € 3,546 € 2,067 € 2,642

Total costs € 1,182 € 2,092 € 1,567 € 1,833 € 1,175 € 1,462
Total Expenses (including
€ 3,649 € 5,210 € 4,139 € 5,379 € 3,242 € 4,104
investments)
pg. 17
As shown on the graph below, the costs to replace losses (36%) represent the largest
percentage of total expenses, followed by the fuel costs (28%), the generator and
inverter purchase (27%), and the maintenance and productivity costs (9%).
Maintenance and
productivity
9%
Costs to replace
Generator and
losses
inverter purchase
36%
27%
Fuel costs
28%
Graph 2. Distribution of expenses for an average business in Kosovo
3.1.2 Average Annual Estimated Monetary Losses
Apart from additional expenses to secure alternative sources of electricity supply and
replace losses, businesses also incur significant losses due to electricity cuts and poor
quality. In this regard, the survey asked questions regarding the loss in monetary
value of various business input factors that were destroyed or damaged during a
electricity outage or voltage fluctuation.
The losses listed below are included in estimating the total cost to businesses
resulting from the following formula:
Total cost to businesses from irregular electricity supply = losses + total expenses
(alternative power supply expenses + additional costs to replace losses)
Losses for the survey respondents are measured for the following business factors:
(a) Reported losses by companies in raw materials/inputs

a. Monetary value of the raw materials/inputs that was lost
(b) Reported Losses by companies in Machinery/ Equipment
a. Monetary residual value of machinery/ equipment that was
destroyed/damaged and needing replacement
pg. 18
(c) Reported Losses by companies in Revenues

a. Monetary estimate of loss in sales revenue resulting from business
closures, service disruptions, lower production and service
(d) Reported Losses by companies in Data
a. Monetary value of the purchased data or costs expended for data
collection or entry procedures
(e) Reported Losses by companies in labor productivity
a. Monetary estimate of the wage loss resulting from employees unable to
perform employment tasks, while being paid
i. Estimated based on hourly wage (as derived from self-reported
salary estimates) multiplied by lost work hours due to business
closure, or disruptions to business activity
(f) Reported Losses (other)
a. Monetary estimate provided by survey respondents of the additional
losses incurred not captured in the above listed categories
The sum of these factors is referred to as the losses to businesses due to irregular
electricity supply.
Findings show that a typical business in Kosovo loses 1,982 Euros annually due to
electricity cuts and voltage fluctuations. The largest losses in this regard were
reported by large businesses, and were mostly related to damages of product/raw
material.
Table 10. Average Losses per company by company size

Product/Raw material € 182 € 236 € 519 € 14,625 € 471
€ 426 € 328 € 1,739 € 1,642 € 573
replacement
€ 239 € 406 € 2,228 € 3,535 € 580
services provision
Data and information (loss in computer
€ 105 € 174 € 433 € 333 € 168
data from electricity)
Other € 11 € 40 € 131 €- € 34
Productivity Losses € 100 € 199 € 210 € 918 € 156
Total € 1,063 € 1,383 € 5,260 € 21,054 € 1,982
Disaggregated by industry, businesses in production declared highest losses, followed

by those in the industry of C/E/T. Most of their losses came from lost revenues, repair
or replacement of equipment/machinery and losses of product/raw materials.
pg. 19
Table 11. Average losses per company by industry

Product/Raw material € 330 € 741 € 558 € 782 € 179 € 471
€ 409 € 1,076 € 580 € 781 € 369 € 573
replacement
Revenues for production of
€ 364 € 1,226 € 588 € 844 € 340 € 580
goods or services provision
Inventory € 125 € 250 € 148 € 157 € 310 € 168
€ 30 € 33 € 42 € 45 € 21 € 34
computer data from electricity)
Other
€ 159 € 162 € 152 € 219 € 79 € 156
Total € 1,417 € 3,488 € 2,068 € 2,828 € 1,298 € 1,982
3.2 PRIVATE SECTOR BUSINESS IMPLICATIONS
3.2.1 Analysis by Business Size
This section of the report focuses on the implications of business expenses and losses
on their overall turnover. The table below displays the average annual monetary
burden to businesses of various sizes, and the overall national estimate for the entire
private sector in Kosovo.
Table 12. Mean annual costs and losses by size
Micro Small Medium Large Total**

Per Business
Average Annual € 4,026 € 4,750 € 13,365 € 48,955 € 6,086
Cost*
National Average
€ 125,349,200 € 47,038,316 € 92,936,811 € 30,694,940 € 296,019,267
Annual Costs
* Aggregate costs include expenses and losses
** Total refers to the mean value per business and nation irrespective of business size. It is a weighted average of all business
sizes according to their relative proportions in the Kosovo economy.
As illustrated in the table above, the data from the survey show that the yearly
financial burden placed on Kosovo’s private sector due to irregular electricity supply
is estimated to be 296,019,267 Euros. This sum represents approximately 5.0
percent of Kosovo’s 2014 GDP (5,506 billion Euros). On average, regardless of
business size, a firm in Kosovo realizes an additional 6,086 Euros in cost due to
expenses and losses from power cuts and voltage fluctuations.
pg. 20
The total financial burden provides insights into the impact to businesses financial
performance when related to reported turnover data. Turnover data for the firms was
collected in two ways; self-reported figures and estimates provided by TAK,
aggregated by industry and size to protect the business confidentiality requirements.
In addition to turnover data, the study collected monthly billing amounts from KEDS
for each business surveyed. Both the data from TAK and KEDS were included in the
overall analysis to estimate the impact on business performance. The table below
illustrates a notional balance sheet representation for a firm. The expenses’ estimates
were provided by businesses in response to survey questions. The energy bill data
was provided by KEDS. The energy costs and losses are related to the estimates
provided in the previous sections of this report. The profit estimates are estimated
based on both the survey annual average turnover amounts reported by businesses
and TAK data. The table below breaks down total expenses and losses and compares
them to the corresponding firm’s financial data according to business size.
Table 13. Turnover and Electricity Related Average Annual Expenses by Company Size15
Business Financial Performance by Size

Annual
Micro Small Medium Large Average per
business
Turnover (survey) € 16,130 € 41,069 € 138,384 € 1,224,000 € 57,606
Turnover (TAK) € 1,220 € 17,064 € 247,468 € 5,130,539 € 117,842
Communication € 299 € 427 € 1,198 € 2,033 € 473
Salaries Net € 9,207 € 17,390 € 46,390 € 514,300 € 24,213
Rent € 1,109 € 1,865 € 4,334 € 6,222 € 1,803
Transportation € 845 € 1,461 € 2,128 € 35,667 € 1,742
Water Bill € 218 € 331 € 647 € 294 € 304
Taxes (all taxes paid) € 2,244 € 2,878 € 6,810 € 26,800 € 3,374
Garbage Collection € 136 € 211 € 245 € 78 € 170
Production/project/
€ 6,070 € 10,734 € 35,929 € 82,000 € 12,254
service expenditures
Total Recurring
€ 20,770.66 € 37,354.90 € 110,643.46 € 737,893.62 € 47,994.14
Business Expenditures
Profit (based on Survey
(€ 4,640.17) € 3,713.65 € 27,740.35 € 486,106.38 € 9,612.16
Turnover)
Profit (based on TAK
(€ 19,550.18) (€ 20,291.40) € 136,824.33 €4,392,645.67 € 69,847.86
Turnover)
KEK Electricity Bill* € 643.68 € 2,059.00 € 12,961.00 € 70,499.00 € 3,662.10
Energy Expenses € 2,963 € 3,368 € 8,105 € 27,902 € 4,104
Energy Losses € 1,147 € 829 € 2,579 € 16,029 € 1,462
Total Energy Related
€ 4,753.53 € 6,255.63 € 23,645.16 € 114,429.76 € 9,228.98
Costs
15
Survey Data, except for TAK turnover data
pg. 21
Annual
Micro Small Medium Large Average per
business
Additional Costs (as %) to Businesses due to Unreliable Electricity

Total Energy Expenses
and Losses as 25.48% 10.22% 7.72% 3.59% 9.66%
percentage of Turnover
Total E+L as percentage
19.79% 11.23% 9.66% 5.95% 11.60%
of expenses
Total E+L as percentage
-88.57% 113.01% 38.51% 9.04% 57.91%
of profit
Cost (as %) to Businesses to Maintain Continuous Electricity
Total Energy expenses
€ 3,607 € 5,427 € 21,066 € 98,401 € 7,767
(Expenses + Bill)**
Total Expenses as
22.36% 13.21% 15.22% 8.04% 13.48%
Total Expenses as
percentage of total 17.37% 14.53% 19.04% 13.34% 16.18%
Expenses
Total Expenses as
-77.73% 146.13% 75.94% 20.24% 80.80%
percentage of Profits
* This amount also includes the KEK electricity bill amount
** Represents the cost to maintain continuous electricity supply to businesses
3.2.3 Financial Impact to Businesses
As illustrated in the table, the smaller a business is, the larger the additional cost due
to unreliable electricity supply in proportion to the total turnover. Moreover, micro
businesses scored a negative percentage share of profit (-88.57%). However, as
pointed out in the previous survey on unreliable electricity supply on Kosovar
businesses, this can be related to the presence of an informal economy that is not
reflected in the reported turnover16.
When aggregated, the results show that a typical business’ additional costs due to
electricity constraints represent 9.66 percent of annual turnover, 11.6 percent
of expenses, and 57.91 percent of profits.
3.2.4 Analysis by Industry Segment
This section of the report elaborates on the effects of irregular electricity on the
financial performance of different industries within the business community. The table
below presents the expenses and losses due to electricity cuts and voltage
fluctuations, and compares them to the corresponding firm’s financial data according
to business industry.
16
Effect of unreliable power supply on Kosovar businesses, USAID Kosovo, August 2013
pg. 22
Table 14. Turnover and Electricity Average Annual Related Expenses by Industry17
Business Financial Performance by Industry

Trade Production Services C/E/T* Other**
Turnover (survey) € 45,697 € 42,031 € 76,438 € 117,214 € 25,025
Turnover (TAK) € 200,579 € 206,960 € 98,619 € 189,989 € 17,066
Communication € 355 € 662 € 588 € 563 € 328
Salaries Net € 17,426 € 19,244 € 26,020 € 70,017 € 12,737
Rent € 1,418 € 977 € 3,529 € 971 € 850
Transportation € 930 € 2,060 € 1,750 € 6,001 € 791
Water Bill € 243 € 388 € 333 € 429 € 259
Taxes (all taxes paid) € 2,569 € 3,075 € 3,492 € 5,715 € 4,833
Garbage Collection € 170 € 239 € 165 € 124 € 133
Production/project/ser
€ 9,938 € 18,948 € 13,056 € 14,797 € 8,398
vice expenditures
Total Recurring
€ 36,710.91 € 49,254.93 € 52,594.15 €102,279.81 € 31,991.86
Business Expenditures
Profit (based on Survey
€ 8,986.30 (€7,223.90) € 23,844.33 € 14,934.34 (€6,967.24)
Turnover)
Profit (based on TAK
€163,868.01 €157,705.29 € 46,024.99 € 87,709.24 (€14,925.61)
Turnover)
KEK Electricity Bill*** € 3,662.00 € 3,662.00 € 3,662.00 € 3,662.00 € 3,662.00
Energy Expenses € 3,648.90 € 5,209.68 € 4,139.27 € 5,378.95 € 3,242.03
Energy Losses € 1,417 € 3,488 € 2,068 € 2,828 € 1,299
Total Energy € 8,727.77 € 12,359.57 € 9,869.58 € 11,868.86 € 8,202.61
Additional Costs (as %) to Businesses due to Unreliable Electricity
Total Energy Expenses
and Losses as 11.09% 20.69% 8.12% 7.00% 18.14%
Total E+L as
13.80% 17.66% 11.80% 8.02% 14.19%
percentage of expenses
Total E+L as
56.37% -120.40% 26.03% 54.95% -65.17%
percentage of profit
Cost (as %) to Businesses to Maintain Continuous Electricity
Total Energy expenses
€ 7,310.90 € 8,871.68 € 7,801.27 € 9,040.95 € 6,904.03
(Expenses + Bill)
Total Expenses as
16.00% 21.11% 10.21% 7.71% 27.59%
Total Expenses as
percentage of total 19.91% 18.01% 14.83% 8.84% 21.58%
Expenses
Total Expenses as
81.36% -122.81% 32.72% 60.54% -99.09%
percentage of Profits
*C/E/T refers to Construction, Education and Transportation industries
** Other industries represent a grouping of businesses from various, sparsely represented industries (i.e. financial services, IT,
science, culture, art, etc.)
*** This an average monthly electricity bill amount, calculated across all the businesses in the sample and could not be
disaggregated across industries
17
Survey Data, except for TAK turnover data
pg. 23
As the table illustrates, the businesses in the production sector are the most affected
ones from electricity-related issues since the energy related costs as percentages of
turnover, profit and total expenses are significantly higher than that of businesses in
other industries. Meanwhile, firms in the service industry were the least affected in
terms of their energy expenses and losses as a share of the total profit.
3.2.5 Up Close: Micro and Small Enterprises
Micro and small enterprises represent around 84 percent of the overall business
community in Kosovo. As per self-reported data from the survey, together, micro and
small businesses comprise 16.5 percent of the Kosovo’s estimated GDP in 2014.
Moreover, the self-reported data from the survey show micro enterprises contribute
19 percent to the total turnover of businesses in Kosovo (9.1% of the GDP), and
small businesses contribute 15.4 percent (7.4% of the GDP) in this regard.
The survey results also showed that expenses and losses due to irregular electricity
supply caused to micro enterprises represent 42.3 percent of the total losses and
expenses in the private sector. Meanwhile, losses and expenses incurred by small
firms comprise 15.9 percent of the total losses and expenses in the business
community caused due to electricity loss and voltage fluctuations.
On average, a micro enterprise realizes 4,029 Euros yearly in additional costs and
losses due to irregular electricity supply. The largest share of these expenses go
towards securing alternative sources of electricity supply – generators and inverters
(63%), whereas the other share of expenses represents costs of investments of
recouping losses and damages due to electricity-related issues (37%).
Generator Related Product/Raw

issues (worker hours) material
3% 13% Equipment/machi
Fuel costs (Oct-Mar) nery repair or
21% replacement
7%
Revenue
investments
7%
Fuel costs (Apr-
Sep) Inventory investments
11% 6%
Investment in data
Maintenance and information
generator & 2%
invertor Inverter Generator Other investments
6% 9% 13% 2%
Graph 3. Share of expenses for micro businesses
pg. 24
A small enterprise incurs an average of 4,750 Euros annually in additional costs and
losses due to irregular electricity supply. Similar to micro enterprises, the largest
share of these expenses are generator and inverter related (75%), and the other
expenses are dedicated to investments made due to losses caused by electricity loss
and voltage fluctuations (25%).
Product/Raw
Generator Related issues material Equipment/machinery
(worker hours) 7% repair or replacement
4% 6%
Revenue investments
Fuel costs (Oct- 6%
Mar) Inventory investments
20% 6%
Investment in data
and information
0%
Fuel costs (Apr-Sep)
16%
Generator
Maintenance
23%
generator & invertor
Inverter
5%
7%
Graph 4. Share of expenses for small businesses
Businesses were additionally asked to rate on a scale from 1 to 10 the importance of

various services to their overall operation. Electricity supply was ranked as the most
important service by businesses of all size and industries, with an average importance
score of 9.38 out of 10. The second and third most important services were garbage
collection and water supply respectively. The following table illustrates the ranking of
services by industry size and segment, based on the mean survey response value.
Table 15. Survey Response to Importance of Services to Business Operations
Can you please tell us how important are the following services for your business operations?
(1 = not important at all; 10 = very important)
Company Size Industry
Total
Micro Small Medium Large Trade Production Services C/E/T Other
the fixed
phone-line 4.02 3.77 4.01 5.15 4.11 3.57 5.08 4.47 3.40 3.92
supply?
water
8.04 8.04 7.86 8.39 8.67 7.76 8.72 8.42 7.18 8.00
supply?
garbage
collection
8.40 8.33 8.43 8.77 7.78 8.42 8.79 8.59 7.40 8.16
in your
area?
public
transport in 7.17 7.18 7.24 7.27 5.22 7.19 7.30 7.32 6.14 7.42
your area?
electricity
9.38 9.29 9.38 9.70 10.00 9.44 9.58 9.64 8.04 9.30
supply?
pg. 25
3.2.6 Up Close: Medium and Large Businesses
Although they represent only 16 percent of the total business population, medium
and large businesses contribute considerably towards Kosovo’s economy. Together,
medium and large businesses comprise 31.4 percent of Kosovo’s estimated GDP. In
terms of total turnover from the business community in Kosovo, the data from the
survey show that medium businesses are accountable for 36.5 percent of the total
private sector turnover, whereas large businesses contribute with 29.1 percent in this
regard.
In terms of energy related costs, medium businesses incur 31.4 percent of the total
share of expenses and losses of the business community in Kosovo due to irregular
electricity supply. Meanwhile, expenses and losses suffered by large firms due to
electricity cuts and instability account for 10.4 percent of the overall amount.
On average, the additional costs due to irregular electricity supply are 13,365 Euros
per year for a typical medium sized business. Around 69 percent of these costs are
related to generators and inverters, and the other 31 percent are costs to recoup
damages and losses.
Generator Related issues Product/Raw

(worker hours) material
Fuel costs (Oct-Mar) 2% 14%
13%
Equipment/machin
Fuel costs (Apr- ery repair or
Sep) replacement
8% 8%
Revenue
Maintenance investments
generator & 2%
invertor Inventory
6% investments
Inverter 6%
2% Investment in data
and information
1%
Generator
38%
Graph 5. Share of expenses for medium businesses
pg. 26
On the other hand, survey results indicate that a large business incurs 48,955 Euros
annually on average in additional costs and losses due to irregular electricity supply.
In contrast to other sized businesses, the majority of these costs are related to
investments due to damages of equipment/machinery and revenue losses (51%).
Costs related to alternative sources of energy supply account for 42 percent of the
total additional costs due to electricity cuts and instability.
Generator Related issues Product/Raw material

Fuel costs (Oct-Mar) (worker hours) 6%
11% Fuel costs (Apr- 1%
Sep)
6%
Maintenance
generator &
invertor Equipment/machin
Inverter
5% ery repair or
1% replacement
38%
Generator
18%
Inventory investments Revenue investments

1% 13%
Graph 6. Share of expenses for large businesses
3.2.6 Up Close: Production Sector
As pointed out earlier in the report, survey findings show that the production sector
in Kosovo is the most affected one by irregular electricity supply. The total expenses
related to energy amount to approximately 12,360 Euros for a typical business
within the production sector. Firms operating in this sector were also most likely to
claim they use generators as alternative electricity supply sources (47%).
Irregular electricity supply also affects the pricing of businesses’ products and
services. Results from the assessment illustrate that the biggest burden in this regard
is placed on production firms. The interviewed businesses in this sector stated that
prices of their products increase by an average of 5.6 percent due to the usage of
alternative sources of power.
Additionally, businesses operating in the production sector showed more readiness
than those from other sectors to hire new employees (34%) and expand their
service/product lines (24%) if they had regular and reliable electricity supply.
Production firms were also the most likely ones to state that they would stay longer
hours (20%) and open additional stores/locations (17%) if they could rely on regular
and stable electricity supply.
pg. 27
3.3 ELECTRICITY END USAGE
Firms were asked to report on what they use electricity for. The results show that a
vast majority of 97 percent of businesses use electricity for lighting, whereas 62
percent of them use it for computers. Around half of businesses declared to use
electricity for manufacturing (52%), refrigeration (51%) and telecom expenses
(47%), whereas lower percentages of businesses used electricity for heating (33%)
and air-conditioning (28%).
Table 16. Percentage of companies that use electricity by function
Percentage of
Function
Businesses
Lighting 96.6
Computers 62.3
Manufacturing/service equipment* 52.0
Refrigeration 50.5
Telecom 47.4
Heating 33.3
Air-conditioning 27.9
* In this context, manufacturing is interpreted as any business functions that supports the sale of a service or good
Additionally, firms were asked to estimate the fraction of the total electricity bill that
each of the aforementioned energy usage accounts for. Interviewed businesses
declared that lighting amounts to 32 percent of the total electricity bill, followed by
manufacturing/service equipment (23%), and computers (12%).
Telecom equipment Air-conditioning Other

(TV, phone, etc.) 4% 1%
7%
Lighting
32%
Refrigeration
11%
Computers
12%
Manufacturing/service Heating
equipment 10%
23%
Graph 7. Percentage share of certain functions in the electricity bill (n = 560)
pg. 28
3.4 ALTERNATIVE SOURCES OF ELECTRICITY
Interviewed businesses were asked to report on usage of alternative sources of

electricity supply on monthly basis. On average, large businesses reported that they
use alternative sources of energy for 7.8 days per month. In contrast, medium firms
declared that they spend only 2.9 days per month using alternative sources of power
supply.
Micro 6.3
Small 4.2
Medium 2.9
Large 7.8
Graph 8. Average days per month on alternative power sources – by business size
The following table presents the same data converted to working hours on monthly
basis.
Table 17. Average usage hours per business by company size
Micro Small Medium Large

Usage of Alternate Sources of Power per month
60.7 41.6 33.5 68.3
(generators and inverters)
3.4.1 Usage of alternative power sources

Businesses were also asked what alternative methods of power supply they use for
business operations. Around 59 percent of the interviewed firms stated that they do
not use any other energy sources. Meanwhile, generators were used by 36 of the
interviewed companies, whereas only five percent of firms used inverters as an
alternative source of power supply.
pg. 29
Does not use any other energy sources 59%
Generator (fuel) 36%
Inverters 5%
Graph 9. Types of alternative power supply used for business operations
Disaggregated by size, the survey data show that the smaller the business is the less
likely it is to claim usage of alternative sources of power supply.
Table 18. Types of alternative power supply used for business operations – by business size
Micro Small Medium Large Total

Generator 30% 40% 51% 67% 36%
Inverters 3% 6% 12% 11% 5%
Does not use any other energy sources 68% 54% 39% 22% 59%
Meanwhile, split by business industry the findings show that businesses in operating
in services (52%) and production (47%) were the most likely to use alternative
energy supply sources.
Table 19. Types of alternative energy supply used for business operations – by business sector
Trade Production Services C/E/T Other Total

Generator 28% 47% 46% 24% 40% 36%
Inverters 7% 0% 6% 0% 6% 5%
Does not use any other energy sources 66% 53% 48% 76% 57% 59%
When asked about the end-use of alternative sources of energy supply, the vast
majority of businesses reported that they use these sources for lighting (97%). Other
popular uses of alternative sources of energy include computers (61%),
manufacturing/service equipment (60%), and telecom equipment (47%).
pg. 30
Lighting 97%
Computers 61%
Manufacturing/service equipment 60%
Telecom equipment (TV, phone, etc.) 47%
Refrigeration 42%
Air-conditioning 17%
Heating 9%
Other 9%
Graph 10. End use of alternative energy supply for an average business in Kosovo
As businesses are faced with two main issues in regard to power supply, they were
asked to point out which one was more important, electricity quality (voltage
fluctuations) or power outage. Around 70 percent of interviewed businesses stated
that power outage more problematic to them, compared to 28 percent who stated
that quality is a bigger problem. In terms of company size, it should be noted that
large businesses were split in terms of their answers, as half of them said that
electricity quality is more problematic, and the other half placed more importance to
power outage.
Meanwhile, when data from this question were disaggregated by industry, businesses
in the production sector were the ones most likely to report that electricity quality is
a more important problem (44%).
Table 19. Importance of electricity quality vs. power outage
Which is a more important problem for you - power quality or outage?

Total
Electricity
quality
27.8% 27.9% 34.1% 10.0% 50.0% 27.5% 44.0% 22.9% 18.2% 18.2%
(voltage
fluctuations)
Power
69.9% 67.6% 65.9% 90.0% 50.0% 68.6% 56.0% 77.1% 81.8% 72.7%
outage
Don’t know 2.3% 4.4% 3.9% 9.1%
pg. 31
Around 26 percent of interviewed businesses said that apart from power outages,
they also face other problems related to the quality of electric energy. Seventy-seven
percent of these businesses identified under-voltage electricity as their issue in terms
of electricity quality, whereas 12 percent reported over-voltage as a problem. The
table below presents the results from this question categorized by business size and
industry.
Table 20. Types of Electricity Quality Issues that Businesses Faced (n = 145)
Apart from power outages, what kind of problems with quality of electric energy do you face?
Total
Under-
77.6% 79.2% 79.5% 63.6% 100.0% 73.7% 82.8% 75.0% 83.3% 84.6%
voltage
Over-
11.6% 11.7% 9.1% 18.2% 12.3% 17.2% 13.9%
voltage
Other 3.4% 4.5% 13.6% 3.5% 8.3%
3.4.2 Irregular electricity supply affects product prices
Businesses were asked whether there was any association between power cuts and
end prices of products. The findings from the survey show that there is an average
of four percent increase in the prices of products due to usage of alternative sources
of energy supply.
In terms of sizes, the most affected in this regard were small and large businesses,
as they reported the largest increase of product price as a result of using alternative
energy sources. Meanwhile, in regard to industries, businesses operating in the
production sector were the ones that declared the highest average increase of
product price due to power outages.
Table 21. Survey responses to how much final price has risen due to alternative sources of energy
By how many per cent the product price has increased as a result of using alternative source of
energy, such as generator, inverter and similar?

Total
Product
price
increase 3.92 3.79 5.00 1.56 4.75 2.07 5.60 4.70 3.83 4.38
(%)
pg. 32
3.4.3 Irregular electricity supply impacts business investment choices
The survey asked companies about their willingness to invest in their business if they
had regular and reliable electricity supply.
The findings show that one in every five businesses showed willingness to hire more
workers if they had regular and reliable electricity supply. The production sector
showed more readiness to hire new employees (34%).
Table 22. Survey Responses to Investment/Expansion Options with Reliable Electricity Supply: Hire More Workers
Would you hire more workers if you had regular and reliable electricity supply?

Total
Yes 19.5% 16.1% 21.0% 31.3% 22.2% 15.6% 34.2% 22.4% 15.7% 11.3%
No 64.6% 68.5% 62.3% 52.2% 66.7% 67.1% 50.0% 62.9% 66.7% 77.4%
Don’t
15.9% 15.5% 16.8% 16.4% 11.1% 17.3% 15.8% 14.7% 17.6% 11.3%
know/Refuse
Around 15 percent of the interviewed business stated that they would also expand
their service/product line if they could rely on stable and regular electric energy.
Again, businesses pertaining to the production industry were the most willing to
invest in this regard (24%).
Table 23. Survey Responses to Investment/Expansion Options with Reliable Electricity Supply: Service Line/Product Offering
Would you expand your service/product line offers if you had regular and reliable electricity supply?

Total
Yes 15.2% 9.1% 23.4% 22.4% 22.2% 13.1% 23.7% 17.5% 13.7% 7.5%
No 60.5% 62.5% 58.7% 55.2% 66.7% 59.9% 47.4% 65.0% 56.9% 73.6%
Don’t
24.3% 28.4% 18.0% 22.4% 11.1% 27.0% 28.9% 17.5% 29.4% 18.9%
know/Refuse
pg. 33
Around 13 percent said they would stay open longer hours if they could rely on stable
and regular electricity. When asked if they would open additional stores/locations if
they had regular and reliable electricity supply, 13 percent replied affirmatively.
Table 24. Survey Responses to Investment/Expansion Options with Reliable Electricity Supply: Stay Open Longer Hours
Would you stay open longer hours if you had regular and reliable electricity supply?

Total
Yes 12.7% 10.1% 15.6% 19.4% .0% 11.8% 19.7% 16.1% 3.9% 5.7%
No 67.0% 65.0% 70.7% 64.2% 88.9% 66.2% 63.2% 71.3% 62.7% 67.9%
Don’t
20.4% 24.9% 13.8% 16.4% 11.1% 21.9% 17.1% 12.6% 33.3% 26.4%
know/Refuse
Table 25. Survey Responses to Investment/Expansion Options with Reliable Electricity Supply: Open Additional Stores
Would you open additional stores/locations if you had regular and reliable electricity supply?
Total
Yes 13.2% 9.1% 16.8% 25.4% .0% 13.5% 17.1% 16.8% 2.0% 7.5%
No 68.8% 67.8% 71.3% 62.7% 100.0% 66.7% 60.5% 72.0% 76.5% 73.6%
Don’t
18.0% 23.0% 12.0% 11.9% .0% 19.8% 22.4% 11.2% 21.6% 18.9%
know/Refuse
pg. 34
3.5 ROLE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY

SOURCES
3.5.1 Businesses employ energy efficiency strategies
Businesses were asked questions on their awareness and practice of energy efficiency
solutions and methods. Based on the survey responses, the majority of businesses
employ various strategies to become more energy efficient. Among the most common
strategies mentioned by interviewed firms were turning off of unnecessary equipment
overnight (87%), and turning off of all or most of the lights overnight (87%).
Businesses also reported that they are more cautious when purchasing new
equipment, with 86 percent of them stating that they consider energy efficiency level
of equipment/appliances before buying the items.
Turn off unnecessary equipment

87.3%
overnight
Turn off all or most of the lights overnight 87.1%
Consider energy efficiency level of

equipment/appliances when purchasing 86.3%
them
Encourage non-usage of electricity for

75.4%
heating
Use energy efficient light bulbs 72.7%
Graph 11. Energy efficiency strategies
3.5.2 Firms are open to renewable energy sources
Firms were also asked about their awareness and readiness to employ renewable
energy sources for their business operations. The level of knowledge on these sources
varied, as higher percentages of businesses declared their knowledge on solar energy
(86%) and wind power (79%). The least known renewable energy technology was
geothermal energy (33%).
pg. 35
When asked about their willingness to consider these forms of renewable energy,
around 56 percent of all interviewed businesses expressed their readiness to consider
solar energy, and 54 percent were willing to try wind power.
86.3%
Solar energy
56.3%
79.1%
Wind power
53.9%
46.8% Informed
Biofuel
22.3%
Willing to consider
41.6%
Biomass
16.6%
33.4%
Geothermal energy
25.0%
Graph 12. Renewable energy sources: Awareness and readiness to consider
pg. 36
APPENDICES
APPENDIX I: STUDY APPROACH AND ASSUMPTIONS
This survey was conducted with a sample of active businesses registered in Kosovo.
Businesses for the purpose of this study were considered that are active as taxpayers
according to the Tax Administration of Kosovo (TAK). Face-to-face computer assisted
personal interviews (CAPI) were conducted with 560 business representatives. At a
95 percent confidence interval, this sample generates a margin of error of ±4.15
percent.
A two-stage stratified random sampling approach was used to design the sample,
where the first stratum represents municipal level quota for businesses proportionally
to the size of the sub-population in each municipality, and the second stratum
represents business sizes: micro, small, medium, and large.
The quantitative survey data was supplemented by energy consumption and

restriction data, power bill data, and load shedding data provided by KEDS, in addition
to industry size and segment turnover and tax data reported by TAK in estimating
the impacts.
Report Assumptions and Limitations

Following are the key assumptions and limitations encountered during this follow-up
assessment exercise:
 All data used in the report refer to 2014, unless stated otherwise.
 The survey results are self-reported data from interviewed business owners
and managers. One-third of the interviewed businesses have been randomly
selected and contacted to verify that the interview has been conducted and
that the responses are consistent. However, the survey results are produced
based on self-reported data from business owners and managers, and the
actual correctness of provided information cannot be proved.
 The sample of 560 businesses is representative on a national level and the
distribution of interviews by size and sector was similar to the distribution of
the business universe in Kosovo. However, when data are grouped by business
size and industry, the sub-samples become subject to large margin of error
and weaker statistical precision.
 Collection of a large number of business information using the memory recall
has limits in terms of providing precise figures for specific and narrow
categories.
 The absence of a qualitative part for the study limits the aspects of interpreting
quantitative data for the observed phenomena.
pg. 37
APPENDIX II: QUANTITATIVE SURVEY QUESTIONNAIRE
D-1b. And how many hours a day is your business open to customers?
A. _days per week

B. _hours per day
D-2. And on average, what is the total hours a day your business is operating, including pre-opening and
preparation hours, main business and closing time?
__ __ hours per day
D-3a. What is the most important problem facing your company today?
D-3b. And what is the next most important problem?
a)____________________________________________________ 99.R/DK (vol.)
b)____________________________________________________ 99.R/DK (vol.)
D-4. Can you please tell me how important are the following services for your business operations using
a scale from ‘1’ to ‘10’, where ‘1’ stands for “not important at all”, while ‘10’ stands for “very
important”.
Ref/DK
a) the fixed phone-line supply? 1 2 3 4 5 6 7 8 9 10 99
b) water supply? 1 2 3 4 5 6 7 8 9 10 99
c) garbage collection in your area? 1 2 3 4 5 6 7 8 9 10 99
d) public transport in your area? 1 2 3 4 5 6 7 8 9 10 99
e) electricity supply? 1 2 3 4 5 6 7 8 9 10 99
D-5. Apart from facing power restrictions do you also face problems with quality of electric energy
that you are getting?
1. Yes GO TO D-6
2. No SKIP TO D-8a
3. Refuse/don’t know SKIP TO D-8a
D-6. What kind of problems?
1. Undercurrent
2. Overcurrent
3. Other (specify)___________
8. Refuse
9. Don’t know
pg. 38
D-7. Which is more important problem for you-power quality or restrictions?
1. Power quality
2. Restrictions
8. Refuse
9. Don’t know
D-8a. Can you tell me what do you use electricity for? (READ OUT.MULTIPLE RESPONSE)
1. Lighting
2. Heating
3. Manufacturing/service equipment
4. Computers
5. Refrigeration
6. Telecom equipment (TV, phone, etc.)
7. Air-conditioning
8. Other ( specify)
D-8b. Can you give estimation in % about the share of electricity consumption for the electricity
spenders you just mentioned? SHOW CARD
D-8a. Electricity spender D-8b. Share in %

1. Lighting %
2. Heating %
3. Manufacturing/service equipment %
4. Computers %
5. Refrigeration %
6. Telecom equipment (TV, phone, etc.) %
7. Air-conditioning %
8. Other %
9. Other %
TOTAL 100%
D-9. Apart from the power supply from the electric utility company, what other types of power supply
you are relying on for the moment for your business operations? (READ OUT. MULTIPLE RESPONSE)
1. Generator (fuel)
2. Wind generator
3. Solar panels
4. Inverters
5. Other (specify) _____________________
6. Other (specify) _______________________
7. Other (specify)_________________________
8. Does not use any other energy sources [Skip to question D21]
pg. 39
IF COMPANY DOES NOT HAVE ANY OF THE ALTERNATIIVE SOURCES OF POWER IN D-9, SKIP TO
D-21
D-10. Could you please tell me when did you buy it-what year was this?
D-11. And do you remember what was the total price you paid to purchase and install this power
source?
D-11. Cost when

D-9. Source of power D-10. Year purchased
purchased
1. Generator (fuel) ________EUR
2. Wind generator ________EUR
3. Solar panels ________EUR
4. Inverters ________EUR
5. Other ________EUR
D-12. How often did you purchase each of the following in the last 10 years)?
D-9. Source of power D-12. Frequency of purchase
1. Generator (fuel) (number of purchase)
2. Wind generator (number of purchase)
3. Solar panels (number of purchase)
4. Inverters (number of purchase)
5. Other (number of purchase)
(ASK FOR THOSE MENTIONED IN D-9)
D-13. And can you now give me an approximate total cost of maintenance for the past 12 months?
[Interviewer: Make sure respondent understands that generator maintenance is without fuel; the cost
of regular maintenance, repairs, change of filters, etc.]
Sources of power supply D-13. Cost of maintenance

1. Generator (fuel) ________EUR
2. Wind generator ________EUR
3. Solar panels ________EUR
4. Inverters ________EUR
pg. 40
D-14. Can you please tell me how many hours per month do you usually use this power source in a
typical month during the summer season (April through September)?
D-15. And how many hours per month do you usually use this power source in a typical month during
the winter season (October through March)?
Sources of power supply D-14.Total hours D-15. Total hours

summer winter
1. Generator (fuel) _________hours _________hours
2. Wind generator _________hours _________hours
3. Solar panels _________hours _________hours
4. Inverters _________hours _________hours
5. Other _________hours _________hours
(ASK IF GENERATOR WAS MENTIONED IN D-9)

D-16. Can you please tell me how much did you spend on fuel for your generator per month in a typical
month during the summer season (April through September)?

D-17. And do you remember how much did you spend on fuel for your generator per month in a typical
month during the winter season (October through March)?

D-18a. What is the total capacity of your generator?

D-18b. How many hours would you estimate are required a typical month for you or your employees to
focus on generator-related issues (fuel purchases, maintenance, shopping for parts, etc.)
D-16. Avg Total for a D-17. Avg Total for a D-18a. Capacity in KW D-18b. Hour spent
summer month winter month around generator
____________EUR ____________EUR ____________KW ____________hours
pg. 41
D-19. Can you please tell me which of the following are powered by your alternative source of power
during restriction periods?
Categories YES NO Don’t know
1. Lighting 1 2 9
2. Heating 1 2 9
3. Manufacturing/serviceequipment/production 1 2 9
4. Computers 1 2 9
5. Refrigeration 1 2 9
6. Telecom equipment (TV, phone, etc.) 1 2 9
7. Air-conditioning 1 2 9
8. Other 1 2 9
9. Other 1 2 9
D-20. By how many per cent the product price has increased as a result of using alternative source of
power, such as generator, inverter and similar?
__ __ __ %
D-21. What is the impact of electricity restrictions, if any, on your business activities? Please, use this
scale from 1 to 10, where 1 stands for ‘Not at all’, while 10 mean ‘A lot’.
Ref/DK
a) Production flow/process 1 2 3 4 5 6 7 8 9 10 99
b) Supply chain 1 2 3 4 5 6 7 8 9 10 99
c) Product delivery 1 2 3 4 5 6 7 8 9 10 99
d) Your business standing/reputation 1 2 3 4 5 6 7 8 9 10 99
e) Other (specify) 1 2 3 4 5 6 7 8 9 10 99
D-22a. Thinking about the past 12 months, can you give estimation about the likely loss in monetary
value (Euros) for each of the following, due to power restrictions or low power quality?
Value in Euros
a) Product/Raw material ____________EUR
b) Equipment/machinery repair or replacement ____________EUR
c) Revenues for production of goods or services provision ____________EUR
d) Data and information (loss in computer data from power) ____________EUR
e) Other ____________EUR
a) Other ____________EUR
pg. 42
D-22b. (ASK THOSE WHO MENTIONED ANY VALUE IN D-22a): And thinking about the last 12
months, how much you had to invest in each of the following, in order to restore/replace the damaged
items due to power restrictions or low power quality?
Categories Value in Euros
a) Product/Raw material ____________EUR
b) Equipment/machinery repair or replacement ____________EUR
c) Revenues for production of goods or services provision ____________EUR
d) Inventory ____________EUR
e) Data and information (loss in computer data from power) ____________EUR
f) Other ____________EUR
g) Other ____________EUR
D-23. (ASK ALL) Thinking about the past 12 months, did you have to hire or fire staff due to power
restrictions or low power quality? If YES, how many people?
Number of people
a) Hire people
b) Fire people
D-24. Can you please estimate in a typical month, how many hours your employees are not performing
their tasks due to power restrictions? Please give me the number of hours in a typical month and
number of employees doing nothing during these periods.
(Interviewer: For example a person working as a clerk on a computer, if there is no power, he/she will
not be working for the duration of the power cut.)
A. __ __ hours per month

B. __ __ number of employees
D-25. How much would you be willing to invest on an annual basis in expanding your business if you
had regular and reliable power supply? Would you…
D-25a D-25b
a. Hire more workers 1. YES How many workers? __ __ __ workers

2. NO
9.Don’t know/Refuse
b. Expand your service/product offers Values in Euros: __ __ __ EUR
1. YES
2. NO
c. Stay open longer hours 1. YES How many hours a day? __ __ __hours
2. NO
pg. 43
d. Open additional stores/locations How many locations? __ __ __ locations

1. YES
2. NO
e. Expand production/manufacturing lines Value in Euros __ __ __ EUR

1. YES
2. NO
D-26. Can you please tell me if you regularly employ each of the following practices in your company?
Practices Don’t
YES NO
know
A. Turn off all or most of the lights overnight 1 2 9
B. Use energy efficiency light bulbs 1 2 9
C. Turn off unnecessary equipment overnight 1 2 9
D. 1 2 9
equipment/appliances when purchasing them
E. Encourage non-usage of electricity for heating 1 2 9
F. Other 1 2 9
D-27. Have you heard of/are you aware of the following alternative power sources?
Don’t
YES NO
know
A. Wind power 1 2 9
B. Solar energy 1 2 9
C. Biomass 1 2 9
D. Biofuel 1 2 9
E. Geothermal energy 1 2 9
D-28. (Filtered, ask for each the respondent in aware of) And would you be willing to consider the
following forms of renewable energy for use in your business in the near future?
Don’t
YES NO
know
A. Wind power 1 2 9
B. Solar energy 1 2 9
C. Biomass 1 2 9
D. Biofuel 1 2 9
E. Geothermal energy 1 2 9
pg. 44
DEMOGRAPHICS
A-1. Gender of Respondent (Interviewer: Code, Don’t Ask)

1. Male 2. Female
A-2. How old were you on your last birthday?

__ __ (actual age)
A-3. How many years of formal education have you completed?

__ __ (years of education)
99. Refused/Don’t Know (vol.)
A-4a. What is your position within the company?
1. Executive manager
2. Chief finance officer
3. Owner (small business)
4. Co-owner
5. Other (specify)______________________
6. Ref/Don’t know
A-4b. What is the status of ownership of your company?

1. Kosovar private
2. Joint venture, with foreign participation
3. 100% foreign
4. Other (specify)______________________
A-4c. What sector does your company work in primarily? (Write down and then code the sector)
1. Production 1. Construction
2. Commerce 2. Science, culture, art
3. Services and Tourism 3. Army, police, security
4. Agriculture 4. Financial services
5. Education 5. Computers and IT systems
6. Health and healthcare 97. Other (specify)
7. Transport 99. Refused/Don’t Know
A-5a. How many workers in total does this company has?
pg. 45
A-5b. And how many of them are working part-time, including you?
A-5a. Total Working A-5b. Part time
A-6. Thinking about the last 12 months, approximately how much did your company spend on a typical
month on each of the following items?
a. Communication _ _ _ _ ( euro )
b. Salaries (net) _ _ _ _ ( euro )
c. Rent _ _ _ _ ( euro )
d. Transportation _ _ _ _ ( euro )
e. Water bill _ _ _ _ ( euro )
f. Taxes (all taxes your company paid last month) _ _ _ _ ( euro )
g. Garbage collection _ _ _ _ ( euro )
h. Production/project/service expenditures _ _ _ _ ( euro )
A-7. Can you please tell me what the total revenues of your company were for the past 3 years?
2014 2013 2012
_______________EUR _______________ EUR _______________EUR
pg. 46
APPENDIX III: SURVEY TABLES OF RESULTS

D-1a. Can you please tell me how many days a week is your business operating? (days per week)
Total Company Size Industry

Mean Mean Mean Mean Mean Mean Mean Mean Mean Mean
D-1a. Can you please tell me how

many days a week is your business 6.13 6.09 6.16 6.28 5.89 6.08 6.28 6.15 6.02 6.15
operating? (days per week)
D-1b. How many hours a day is your business open to customers? (hours per day)

D-1b. How many hours a day is
your business open to 10.84 10.28 11.06 13.21 8.92 10.83 11.74 11.15 9.19 10.40
customers? (hours per day)
D-2. On average, what is the total hours a day your business is operating, including pre-opening and preparation hours, main business and
closing time? (hours per day)

D-2. On average, what is the total
hours a day your business is
operating, including pre-opening 11.339 10.705 11.683 13.658 10.000 11.115 12.516 11.834 9.520 11.065
and preparation hours, main
business and closing time? (hours
per day)
pg. 47
D-3a. What is the most important problem facing your company today?

Col % Col % Col % Col % Col % Col % Col % Col % Col % Col %
Bad behavior of
.3% 16.7% 1.9%
inspectors
El. Energy 31.0% 34.4% 26.1% 30.4% 33.3% 28.8% 52.8% 30.6% 18.5% 14.8%
El. energy
7.1% 2.7% 9.2% 17.9% 6.8% 7.5% 8.1% 3.7% 7.4%
shedding
Expensive el.
3.6% 2.7% 5.9% 1.8% 4.1% 3.8% 2.7% 7.4%
energy
Local
4.4% 5.5% 2.5% 5.4% 3.4% 3.8% 4.5% 7.4% 7.4%
infrastructure
Taxes 11.0% 15.3% 5.9% 7.1% 16.7% 13.0% 9.4% 11.7% 3.7% 7.4%
Unemployment 8.5% 12.0% 6.7% 1.8% 8.2% 3.6% 33.3% 22.2%
Unfair
11.8% 7.7% 16.0% 16.1% 16.7% 10.3% 9.4% 13.5% 14.8% 14.8%
competition
Weak economy 6.9% 9.8% 5.0% 1.8% 12.3% 1.9% 2.7% 7.4% 3.7%
Others 15.40% 9.80% 22.70% 16.10% 16.70% 13% 7.50% 22.50% 11.10% 14.80%
pg. 48
D-4. Can you please tell me how important are the following services for your business operations?

D-4. Can you please tell me how
important are the following
services for your business 4.020 3.774 4.007 5.145 4.111 3.567 5.079 4.470 3.395 3.922
operations? -The fixed phone-line
supply?
important are the following 8.04 8.04 7.86 8.39 8.67 7.76 8.72 8.42 7.18 8.00
services for your business
operations? -Water supply?
operations? -Garbage collection in
your area?
operations? -Public transport in
your area?
important are the following 9.38 9.29 9.38 9.70 10.00 9.44 9.58 9.64 8.04 9.30
services for your business
operations? -Electricity supply?
pg. 49
D-5. Apart from facing power restrictions do you also face problems with quality of electric energy that you are getting?

Yes 26.3% 24.3% 26.3% 32.8% 44.4% 24.1% 38.2% 25.2% 23.5% 24.5%
No 71.6% 74.8% 69.5% 64.2% 55.6% 73.8% 59.2% 72.7% 74.5% 73.6%
Refuse/don’t know 2.1% .9% 4.2% 3.0% 2.1% 2.6% 2.1% 2.0% 1.9%
D-6. What kind of problems?

Undercurrent 77.6% 79.2% 79.5% 63.6% 100.0% 73.7% 82.8% 75.0% 83.3% 84.6%
Overcurrent 11.6% 11.7% 9.1% 18.2% 12.3% 17.2% 13.9%
Other 3.4% 4.5% 13.6% 3.5% 8.3%
Refuse .7% 1.3% 1.8%
Don’t know 6.8% 7.8% 6.8% 4.5% 8.8% 2.8% 16.7% 15.4%
D-7. Which is more important problem for you-power quality or restrictions?

Power quality 27.8% 27.9% 34.1% 10.0% 50.0% 27.5% 44.0% 22.9% 18.2% 18.2%
Restrictions 69.9% 67.6% 65.9% 90.0% 50.0% 68.6% 56.0% 77.1% 81.8% 72.7%
Don’t know 2.3% 4.4% 3.9% 9.1%
pg. 50
D-8a. Can you tell me what do you use electricity for?

D-8a. Can you tell me what do you
26.1% 27.4% 26.1% 22.2% 20.0% 30.0% 25.3% 22.1% 23.6% 25.7%
use electricity for? Lighting
9.0% 10.1% 7.4% 8.0% 10.0% 10.6% 5.3% 7.8% 12.6% 9.5%
use electricity for? Heating
use electricity for? 14.1% 13.5% 15.4% 13.5% 12.5% 9.3% 20.0% 17.2% 17.3% 12.3%
Manufacturing/service equipment
16.8% 16.1% 17.4% 17.8% 20.0% 17.3% 15.8% 17.2% 15.7% 16.2%
use electricity for? Computers
13.6% 13.3% 13.2% 15.6% 15.0% 13.4% 15.8% 13.1% 11.0% 15.1%
use electricity for? Refrigeration
use electricity for? Telecom 12.8% 13.2% 12.0% 13.1% 12.5% 12.8% 11.6% 13.4% 11.0% 14.0%
equipment (TV, phone, etc.)
use electricity for? Air- 7.5% 6.3% 8.5% 9.8% 10.0% 6.6% 6.3% 9.2% 8.7% 7.3%
conditioning
pg. 51
D-8b. Can you give estimation in % about the share of electricity consumption for the electricity spenders you just mentioned?

D-8b. Can you give estimation in % about
the share of electricity consumption for
26.954 28.732 26.677 20.687 16.111 38.502 15.842 17.832 14.608 27.736
the electricity spenders you just
mentioned? Lighting
9.5518 9.4763 8.4132 13.0597 7.2222 11.3291 6.1842 8.5944 7.7451 10.7547
mentioned? Heating
the electricity spenders you just 19.4804 17.3943 19.6407 27.7612 28.3333 10.3249 35.6184 26.0839 23.8235 15.2830
mentioned?Manufacturing/service
equipment
9.7768 10.0284 9.9461 7.7612 12.7778 10.0633 8.5921 9.3636 7.0588 13.9245
mentioned? Computers
8.6196 8.4322 8.3174 10.9403 3.5556 9.0506 9.9342 8.2867 3.6667 10.4717
mentioned? Refrigeration
the electricity spenders you just 5.6804 6.5584 4.7186 3.8358 6.3333 5.8819 4.4211 5.9441 5.0784 6.4528
mentioned? Telecom equipment (TV,
phone, etc.)
3.5518 2.7823 4.4132 4.9104 4.5556 2.9494 2.3026 4.8671 4.8824 3.2075
mentioned? Air-conditioning
pg. 52
D-9. Apart from the power supply from the electric utility company, what other types of power supply you are relying on for the moment for
your business operations?

Generator (fuel) 35.9% 30.1% 39.5% 50.0% 66.7% 28.0% 47.4% 46.2% 23.5% 38.9%
Inverters 5.0% 2.8% 6.0% 11.8% 11.1% 6.7% .0% 6.3% .0% 5.6%
Does not use any other energy
59.1% 67.1% 54.5% 38.2% 22.2% 65.3% 52.6% 47.6% 76.5% 55.6%
sources
D-10. Could you please tell me when did you buy it-what year was this? Generator (fuel)

1990 1.1% 1.3% 1.7% .0% .0% 1.8% .0% 1.6% .0% .0%
1999 1.7% 1.3% 1.7% 3.0% .0% 3.5% .0% 1.6% .0% .0%
2000 12.9% 12.7% 11.7% 15.2% 16.7% 17.5% 15.6% 3.2% 30.0% 17.6%
2001 6.7% 3.8% 6.7% 15.2% .0% 5.3% 6.3% 8.1% 10.0% 5.9%
2002 6.2% 5.1% 10.0% 3.0% .0% 1.8% 9.4% 8.1% 20.0% .0%
2003 5.6% 5.1% 8.3% 3.0% .0% 3.5% 6.3% 8.1% 10.0% .0%
2004 3.4% 2.5% 5.0% 3.0% .0% 5.3% 3.1% 3.2% .0% .0%
2005 4.5% 5.1% 3.3% 3.0% 16.7% 3.5% 6.3% 3.2% 20.0% .0%
2006 6.2% 7.6% 5.0% 6.1% .0% 5.3% 12.5% 4.8% .0% 5.9%
2007 3.9% 2.5% 1.7% 12.1% .0% .0% 3.1% 6.5% .0% 11.8%
2008 5.1% 7.6% 3.3% 3.0% .0% 3.5% .0% 8.1% .0% 11.8%
2009 5.6% 7.6% 3.3% 6.1% .0% 7.0% 3.1% 6.5% .0% 5.9%
2010 7.9% 5.1% 10.0% 9.1% 16.7% 8.8% 9.4% 9.7% .0% .0%
2011 9.0% 10.1% 10.0% 6.1% .0% 14.0% 3.1% 6.5% .0% 17.6%
2012 7.3% 11.4% 1.7% 3.0% 33.3% 7.0% 12.5% 4.8% .0% 11.8%
2013 7.3% 6.3% 11.7% 3.0% .0% 8.8% 3.1% 8.1% 10.0% 5.9%
2014 3.9% 3.8% 3.3% 6.1% .0% 3.5% 3.1% 4.8% .0% 5.9%
2015 1.7% 1.3% 1.7% .0% 16.7% .0% 3.1% 3.2% .0% .0%
pg. 53
D-10. Could you please tell me when did you buy it-what year was this? Inverters

Micro Small Medium Trade Services Other
Col % Col % Col % Col % Col % Col % Col %
2004 7.1% 16.7% .0% .0% 20.0% .0% .0%
2005 7.1% .0% 20.0% .0% .0% .0% 50.0%
2007 7.1% .0% 20.0% .0% 20.0% .0% .0%
2010 35.7% 16.7% 40.0% 66.7% 40.0% 42.9% .0%
2011 14.3% 33.3% .0% .0% 20.0% 14.3% .0%
2013 14.3% 16.7% 20.0% .0% .0% 28.6% .0%
2014 14.3% 16.7% .0% 33.3% .0% 14.3% 50.0%
D-11. And do you remember what was the total price you paid to purchase and install this power source?

Generator (fuel) 2761.25 952.86 1799.77 7915.12 9950.00 1585.80 5060.31 2451.83 7836.36 532.35
Inverters 976.92 1103.33 893.33 800.00 1000.00 1006.00 745.00 1600.00
D-12. How often did you purchase each of the following in the last 10 years)?

D-12. How often did you purchase
each of the following in the last 10 1.81 1.71 1.92 1.77 2.67 1.72 2.03 1.80 2.67 1.29
years)? Generator (fuel)
D-12. How often did you purchase
each of the following in the last 10 1.17 1.17 1.40 1.00 1.00 1.11 1.29 1.00
years)? Inverters
pg. 54
D-13. And can you now give me an approximate total cost of maintenance for the past 12 months?

D-13. And can you now give me an
approximate total cost of
270.84 161.84 173.16 493.00 1505.00 192.51 427.19 236.70 714.45 102.22
maintenance for the past 12
months? Generator (fuel)
D-13. And can you now give me an
approximate total cost of
189.09 162.50 85.00 240.00 300.00 168.57 350.00 100.00
maintenance for the past 12
months? Inverters
D-14. Can you please tell me how many hours per month do you usually use this power source in a typical month during the summer season
(April through September)?

many hours per month do you
usually use this power source in a 46.407 42.459 116.833 48.476 118.916 30.842
43.4497 25.8333 32.8438 32.7377
typical month during the summer 0 0 3 9 7 1
season (April through
September)?
pg. 55
D-15. Can you please tell me how many hours per month do you usually use this power source in a typical month during the summer season
(October through March)?

many hours per month do you
usually use this power source in a 59.9581 82.1047 42.8387 43.6757 19.8333 70.5373 44.9677 61.0313 42.9000 52.4737
typical month during the summer
season (October through March)?
D-16. Can you please tell me how much did you spend on fuel for your generator per month in a typical month during the summer season
(April through September)?

D-16. Can you please tell me
how much did you spend on fuel
for your generator per month in
444.3336 314.6250 543.6000 628.5000 1800.0000 462.2845 448.4181 425.0082 461.9971 393.3509
a typical month during the
summer season (April through
September)?
pg. 56
D-17. Can you please tell me how much did you spend on fuel for your generator per month in a typical month during the summer season
(October through March)?

much did you spend on fuel for
your generator per month in a 723.053 613.692 666.600 1075.333 3000.000 738.7145 656.1103 706.7923 776.7189 741.2513
typical month during the summer
season (October through March)?
D-18a. What is the total capacity of your generator in KW?

D-18a. What is the total capacity of your generator in
38.29 30.20 31.35 94.77 38.54 41.87 37.07 37.95 35.68 6.43
KW?
D-18b. How many hours would you estimate are required a typical month for you or your employees to focus on generator-related issues
(fuel purchases, maintenance, shopping for parts, etc.)

D-18b. How many hours would you estimate are
required a typical month for you or your
employees to focus on generator-related issues 7.26 5.71 9.98 7.53 9.67 7.18 8.23 7.31 6.92 6.43
(fuel purchases, maintenance, shopping for
parts, etc.)
pg. 57
D-19. Can you please tell me which of the following are powered by your alternative source of power during restriction periods?

Co % Co % Co % Co % Co % Co % Co % Co % Co % Co %
Yes 96.5% 98.1% 92.1% 100.0% 100.0% 97.5% 97.2% 97.3% 75.0% 100.0%
Lighting
No 3.5% 1.9% 7.9% 2.5% 2.8% 2.7% 25.0%
Yes 8.8% 7.8% 7.9% 12.2% 14.3% 7.4% 5.6% 12.0% 8.3% 8.7%
Heating
No 91.2% 92.2% 92.1% 87.8% 85.7% 92.6% 94.4% 88.0% 91.7% 91.3%
Yes 59.5% 50.5% 61.8% 73.2% 85.7% 40.7% 75.0% 72.0% 83.3% 47.8%
Manufacturing/service equipment
No 40.5% 49.5% 38.2% 26.8% 14.3% 59.3% 25.0% 28.0% 16.7% 52.2%
Yes 60.8% 48.5% 64.5% 80.5% 85.7% 53.1% 55.6% 73.3% 50.0% 60.9%
Computers
No 39.2% 51.5% 35.5% 19.5% 14.3% 46.9% 44.4% 26.7% 50.0% 39.1%
Yes 41.9% 35.9% 44.7% 51.2% 42.9% 37.0% 55.6% 44.0% 50.0% 26.1%
Refrigeration
No 58.1% 64.1% 55.3% 48.8% 57.1% 63.0% 44.4% 56.0% 50.0% 73.9%
Telecom equipment (TV, phone, Yes 46.7% 38.8% 50.0% 58.5% 57.1% 40.7% 41.7% 54.7% 33.3% 56.5%
etc.) No 53.3% 61.2% 50.0% 41.5% 42.9% 59.3% 58.3% 45.3% 66.7% 43.5%
Yes 17.2% 10.7% 17.1% 31.7% 28.6% 8.6% 25.0% 22.7% 8.3% 21.7%
Air-conditioning
No 82.8% 89.3% 82.9% 68.3% 71.4% 91.4% 75.0% 77.3% 91.7% 78.3%
Yes 7.0% 1.9% 10.5% 9.8% 28.6% 4.9% 2.8% 9.3% 16.7% 8.7%
Other ( specify)
No 93.0% 98.1% 89.5% 90.2% 71.4% 95.1% 97.2% 90.7% 83.3% 91.3%
D-20. By how many per cent the product price has increased as a result of using alternative source of power, such as generator, inverter and
similar?

D-20. By how many per cent the product
price has increased as a result of using
3.92 3.79 5.00 1.56 4.75 2.07 5.60 4.70 3.83 4.38
alternative source of power, such as
generator, inverter and similar?
pg. 58
D-21. What is the impact of electricity restrictions, if any, on your business activities?

Production flow/process 25.87 31.81 18.16 19.97 3.44 27.70 18.95 23.41 30.10 30.19
Supply chain 24.80 28.95 19.61 20.24 8.67 22.48 18.04 26.61 30.08 34.89
Product delivery 26.03 29.02 23.02 20.25 19.56 22.24 21.21 30.36 32.53 31.98
Your business standing/reputation 17.97 20.93 13.54 16.06 10.00 16.30 16.96 15.51 21.39 30.19
D-22a. Thinking about the past 12 months, can you give estimation about the likely loss in monetary value (Euros) for each of the following,
due to power restrictions or low power quality?

Product/Raw material 470.8 182.4 236.0 518.7 14,625.0 329.7 740.6 558.2 781.5 179.3
573.3 425.7 327.9 1739.3 1,641.7 408.8 1076.4 580.0 781.3 368.8
replacement

579.6 238.9 405.5 2228.2 3,535.3 364.4 1225.5 587.6 843.7 339.6
services provision

168.3 104.7 173.8 432.5 333.3 124.9 250.2 148.0 156.6 310.0
computer data from power)
Other 28.8 11.2 37.9 92.8 25.9 28.2 32.9 41.2 19.0
Other 5.2 0 2.4 37.5 3.6 5.1 9.2 4.2 2.4
pg. 59
D-22b. And thinking about the last 12 months, how much you had to invest in each of the following, in order to restore/replace the damaged
items due to power restrictions or low power quality?

Product/Raw material 456.6 396.5 220.7 1179.6 1566.6 366.2 837.4 426.6 532.5 322.2
426.8 221.1 192.8 630 10500 329.5 548.4 522.8 650.9 212.5
replacement
Revenues for production of goods
253.3 203.4 188.1 189.2 3700 200.3 291.4 326.7 327.8 166.0
or services provision
232.6 191.3 214.2 473.4 237.5 197.5 320.8 197.5 220.4 369.5
computer data from power)
Other 48.6 63.3 11.1 76.3 25 44.8 44.6 55.0 52.0 51.4
Other 44.2 70.8 1.7 30.5 0 43.8 48.8 37.6 49.2 52.7
D-23. Thinking about the past 12 months, did you have to hire or fire staff due to power restrictions or low power quality? If YES, how many
people?

D-23. Thinking about the past 12
months, did you have to hire or
fire staff due to power restrictions .77 .46 .89 1.62 .00 .36 1.51 .80 1.36 .57
or low power quality? If YES, how
many people? Hire
D-23. Thinking about the past 12
months, did you have to hire or
fire staff due to power restrictions .41 .17 .73 .55 .00 .17 .36 .80 .54 .05
or low power quality? If YES, how
many people? Fire
pg. 60
D-24. Can you please estimate in a typical month, how many hours your employees are not performing their tasks due to power restrictions?
Please give me the number of hours in a typical month and number of employees doing nothing during these periods.
hours per month 4.28 3.72 4.61 4.78 8.86 3.33 6.83 5.47 1.44 2.16
number of employees 3.04 3.08 2.36 4.80 3.14 2.83 3.27 1.63 12.81 2.41
D-25. How much would you be willing to invest on an annual basis in expanding your business if you had regular and reliable power supply?
Would you…
Yes 19.5% 16.1% 21.0% 31.3% 22.2% 15.6% 34.2% 22.4% 15.7% 11.3%
No 64.6% 68.5% 62.3% 52.2% 66.7% 67.1% 50.0% 62.9% 66.7% 77.4%
a. Hire more workers
Don’t
15.9% 15.5% 16.8% 16.4% 11.1% 17.3% 15.8% 14.7% 17.6% 11.3%
know/Refuse
Yes 15.2% 9.1% 23.4% 22.4% 22.2% 13.1% 23.7% 17.5% 13.7% 7.5%
b. Expand your No 60.5% 62.5% 58.7% 55.2% 66.7% 59.9% 47.4% 65.0% 56.9% 73.6%
service/product offers Don’t
24.3% 28.4% 18.0% 22.4% 11.1% 27.0% 28.9% 17.5% 29.4% 18.9%
know/Refuse
Yes 12.7% 10.1% 15.6% 19.4% 11.8% 19.7% 16.1% 3.9% 5.7%
No 67.0% 65.0% 70.7% 64.2% 88.9% 66.2% 63.2% 71.3% 62.7% 67.9%
c. Stay open longer hours
Don’t
20.4% 24.9% 13.8% 16.4% 11.1% 21.9% 17.1% 12.6% 33.3% 26.4%
know/Refuse
Yes 13.2% 9.1% 16.8% 25.4% 13.5% 17.1% 16.8% 2.0% 7.5%
d. Open additional No 68.8% 67.8% 71.3% 62.7% 100.0% 66.7% 60.5% 72.0% 76.5% 73.6%
stores/locations Don’t
18.0% 23.0% 12.0% 11.9% 19.8% 22.4% 11.2% 21.6% 18.9%
know/Refuse
Yes 10.5% 6.3% 15.0% 20.9% 8.4% 23.7% 11.2% 5.9% 3.8%
e. Expand
No 67.7% 66.2% 70.7% 62.7% 100.0% 65.4% 53.9% 74.8% 72.5% 73.6%
production/manufacturing
lines Don’t
21.8% 27.4% 14.4% 16.4% 26.2% 22.4% 14.0% 21.6% 22.6%
know/Refuse
pg. 61
D-25. How much would you be willing to invest on an annual basis in expanding your business if you had regular and reliable power supply?

Hire more worker 3.6 2.8 4.4 5.3 5 3.5 4.1 3.7 3.6 3.5
Expand offers 36550.5 43470.7 23855 36333.3 30000 36103.0 34507.9 37354.8 38403.1 37528.6
Stay open longer 18.6 6.7 45 8.7 18.4 19.4 19.7 14.9 18.7
Open new stores 2.1 1.7 3.1 1.8 2.2 2.2 2.1 2.1 2.1
Expand production 56159.1 70644.6 38756.4 31000 58207.7 52960.9 52008.1 58670.15 60166.3
D-26. Can you please tell me if you regularly employ each of the following practices in your company?

Yes 87.1% 85.5% 90.4% 86.6% 88.9% 88.6% 90.8% 85.3% 74.5% 92.5%
Turn off all or most of the lights No 7.5% 8.2% 5.4% 10.4% 7.2% 5.3% 8.4% 9.8% 7.5%
overnight Don’t
5.4% 6.3% 4.2% 3.0% 11.1% 4.2% 3.9% 6.3% 15.7%
know/Refuse
Yes 72.7% 71.9% 72.5% 74.6% 88.9% 78.1% 77.6% 59.4% 64.7% 84.9%
Use energy efficiency light bulbs No 21.1% 21.1% 22.2% 20.9% 17.7% 18.4% 32.2% 17.6% 13.2%
Don’t
6.3% 6.9% 5.4% 4.5% 11.1% 4.2% 3.9% 8.4% 17.6% 1.9%
know/Refuse
Yes 87.3% 85.2% 91.0% 89.6% 77.8% 87.8% 93.4% 87.4% 72.5% 90.6%
Turn off unnecessary equipment No 5.9% 6.6% 3.6% 7.5% 11.1% 5.9% 2.6% 4.9% 9.8% 9.4%
overnight Don’t
6.8% 8.2% 5.4% 3.0% 11.1% 6.3% 3.9% 7.7% 17.6%
know/Refuse
pg. 62
Yes 86.3% 85.2% 86.2% 91.0% 88.9% 85.7% 96.1% 85.3% 68.6% 94.3%
equipment/appliances when No 4.8% 6.3% 3.6% 1.5% 5.9% 2.8% 11.8% 5.7%
purchasing them Don’t
8.9% 8.5% 10.2% 7.5% 11.1% 8.4% 3.9% 11.9% 19.6%
know/Refuse
Yes 75.4% 77.9% 72.5% 71.6% 66.7% 77.2% 88.2% 67.8% 60.8% 83.0%
Encourage non-usage of electricity No 11.4% 9.1% 12.6% 19.4% 11.1% 9.7% 5.3% 16.1% 19.6% 7.5%
for heating Don’t
13.2% 12.9% 15.0% 9.0% 22.2% 13.1% 6.6% 16.1% 19.6% 9.4%
know/Refuse
Yes 6.6% 7.3% 4.8% 9.0% 5.9% 13.2% 2.1% 9.8% 9.4%
Other No 2.0% 1.9% 3.0% 2.1% 2.1% 3.9% 1.9%

Don’t
91.4% 90.9% 92.2% 91.0% 100.0% 92.0% 86.8% 95.8% 86.3% 88.7%
know/Refuse
D-27. Have you heard of/are you aware of the following alternative power sources?

Yes 79.1% 75.7% 82.0% 85.1% 100.0% 75.9% 81.6% 86.0% 72.5% 77.4%
Wind power
No 20.9% 24.3% 18.0% 14.9% 24.1% 18.4% 14.0% 27.5% 22.6%
Yes 86.3% 80.4% 92.2% 97.0% 100.0% 82.7% 88.2% 93.7% 78.4% 86.8%
Solar energy
No 13.8% 19.6% 7.8% 3.0% 17.3% 11.8% 6.3% 21.6% 13.2%
Yes 41.6% 30.9% 50.9% 64.2% 77.8% 37.1% 50.0% 49.0% 37.3% 34.0%
Biomass
No 58.4% 69.1% 49.1% 35.8% 22.2% 62.9% 50.0% 51.0% 62.7% 66.0%
Yes 46.8% 35.6% 57.5% 70.1% 66.7% 41.4% 51.3% 55.2% 47.1% 41.5%
Biofuel
No 53.2% 64.4% 42.5% 29.9% 33.3% 58.6% 48.7% 44.8% 52.9% 58.5%
Yes 33.4% 25.2% 41.3% 46.3% 77.8% 31.2% 28.9% 39.9% 33.3% 32.1%
Geothermal energy
No 66.6% 74.8% 58.7% 53.7% 22.2% 68.8% 71.1% 60.1% 66.7% 67.9%
pg. 63
D-28. And would you be willing to consider the following forms of renewable energy for use in your business in the near future?

Yes 68.2% 59.2% 73.0% 91.2% 88.9% 64.4% 67.7% 81.3% 56.8% 56.1%
Wind power No 13.1% 14.2% 15.3% 3.5% 11.1% 15.6% 9.7% 9.8% 18.9% 12.2%
Don't know 18.7% 26.7% 11.7% 5.3% 20.0% 22.6% 8.9% 24.3% 31.7%
Yes 65.2% 55.7% 72.7% 84.6% 66.7% 62.8% 68.7% 72.4% 57.5% 56.5%
Solar energy No 13.5% 16.9% 12.3% 3.1% 11.1% 15.3% 11.9% 9.0% 25.0% 10.9%
Don't know 21.3% 27.5% 14.9% 12.3% 22.2% 21.9% 19.4% 18.7% 17.5% 32.6%
Yes 19.6% 12.1% 23.0% 38.1% 57.1% 14.9% 25.8% 25.8% 21.4% 11.1%
Biomass No 28.6% 27.6% 33.1% 22.2% 28.6% 28.4% 28.8% 23.4% 38.1% 35.6%
Don't know 51.8% 60.3% 43.9% 39.7% 14.3% 56.7% 45.5% 50.8% 40.5% 53.3%
Yes 22.3% 14.2% 27.5% 43.3% 55.6% 17.3% 26.3% 30.1% 25.5% 15.1%
Biofuel No 14.1% 11.7% 18.0% 16.4% 11.1% 13.1% 15.8% 12.6% 17.6% 17.0%
Don't know 63.6% 74.1% 54.5% 40.3% 33.3% 69.6% 57.9% 57.3% 56.9% 67.9%
Yes 74.5% 65.0% 81.4% 80.6% 85.7% 70.7% 81.8% 78.9% 70.6% 70.6%
Geothermal energy No 6.9% 10.0% 5.7% 3.2% 8.0% 3.5% 23.5% 5.9%
Don't know 18.6% 25.0% 12.9% 16.1% 14.3% 21.3% 18.2% 17.5% 5.9% 23.5%
A-4a. What is your position within the company?

Executive manager 24.6% 24.9% 21.6% 28.4% 44.4% 20.7% 32.9% 31.5% 17.6% 18.9%
Chief finance officer 2.3% .9% 3.0% 6.0% 11.1% 3.0% 1.3% 2.1% 3.9%
Owner (small business) 55.7% 59.6% 59.9% 32.8% 11.1% 58.6% 50.0% 48.3% 66.7% 60.4%
Co-owner 7.1% 6.0% 9.6% 6.0% 11.1% 8.4% 7.9% 6.3% 2.0% 7.5%
Other (specify) 10.2% 8.5% 6.0% 26.9% 22.2% 9.3% 7.9% 11.9% 9.8% 13.2%
pg. 64
A-5a. How many workers in total does this company has?

A-5a. How many workers in total
3.99 2.24 3.68 11.16 17.67 2.57 4.93 5.38 5.59 3.68
does this company has?
A-5b. And how many of them are working part-time, including you?

A-5b. And how many of them are

1.11 .37 .56 5.93 1.44 1.14 1.54 1.24 .65 .43
working part-time, including you?
A-6. Thinking about the last 12 months, approximately how much did your company spend on a typical month on each of the following items?

Communication 472.55 298.70 427.38 1,198.04 2,033.33 355.04 662.14 587.72 563.35 328.08
Salaries (net) 24,213.38 9,206.86 17,389.66 46,390.19 514,300.00 17,426.47 19,244.18 26,020.46 70,017.45 12,736.68
Rent 1,802.54 1,108.98 1,865.21 4,334.15 6,222.22 1,417.51 977.21 3,528.88 970.76 850.38
Transportation 1,741.60 844.55 1,460.95 2,128.30 35,666.67 930.29 2,059.74 1,750.12 6,001.30 791.44
Water bill 304.07 217.89 330.52 647.16 294.40 242.85 388.25 332.83 429.49 258.81
Taxes (all taxes your
3,374.06 2,244.29 2,877.52 6,810.24 26,800.00 2,569.22 3,074.70 3,491.54 5,714.54 4,833.15
company paid last month)
Garbage collection 170.25 135.69 210.66 245.39 78.00 169.81 238.64 164.83 124.22 133.04
Production/project/service
12,253.59 6,070.00 10,734.00 35,929.00 82,000.00 9,937.73 18,948.08 13,055.77 14,796.71 8,398.28
expenditures
pg. 65
A-7. Can you please tell me what the total revenues of your company were for the past 3 years?

2014 57,606.30 16,130.48 41,068.55 138,383.81 1,224,000.00 45,697.21 42,031.04 76,438.49 117,214.15 25,024.62
2013 60,645.53 14,939.58 53,718.25 168,719.43 994,500.00 49,151.02 46,168.44 75,531.07 126,897.34 28,890.47
2012 174,158.82 14,367.56 404,342.98 228,718.52 1,125,000.00 211,149.21 127,423.42 156,104.99 213,521.14 86,600.04
pg. 66

Final Report Follow Up Assessment On Impact From Irregular Electricity Electricity Supply On Kosovar Businesses PDF

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Final Report Follow Up Assessment On Impact From Irregular Electricity Electricity Supply On Kosovar Businesses PDF

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FOLLOW-UP ASSESSMENT ON IMPACT FROM

IRREGULAR ELECTRICITY SUPPLY ON KOSOVAR

FOLLOW-UP ASSESSMENT ON IMPACT FROM

ASSESSMENT COMMISSIONED BY:

C/E/T Construction, Education, Transportation

FDI Foreign Direct Investments

ICS U.S. Mission's Integrated Country Strategy

KEDS Kosovo Electricity Distribution and Supply Company

MWh Megawatt hours

TAK Kosovo Tax Administration

UNDP United Nations Development Programme

USAID U.S. Agency for International Development

Report Writing: Kujtim Koci

LIST OF TABLES AND FIGURES

Table 1. Business Size by Annual Turnover ..........................................................................10

Study Approach and Methodology

Total cost to businesses from irregular electricity supply = Losses + Total

The main takeaways from this study can be summarized as follows:

 Kosovo businesses incur about 296 million Euros on an annual basis in

Purpose of the study

This information is necessary to assist the government and international donor

Irregular electricity supply refers to both interrupted electricity supply as a result

Annual Turnover Categories (defined

Industry designation is based on the self-reported industry designation in the

Alternative electricity sources refers to the substitute electricity sources used by

Renewable energy sources refer explicitly to renewable energy technologies used

2.1 KOSOVO’S PRIVATE SECTOR

2.1.1 Private Sector Size Segmentation

Table 2. Number of businesses in Kosovo and survey disaggregated by business size

Business Annual Turnover Survey Sample Kosovo Economy

2.1.2 Private Sector Industry Segmentation

Table 3. Number of businesses in Kosovo and survey disaggregated by industry

Survey Sample Kosovo Economy

2.2 KOSOVO’S ELECTRICITY SECTOR

2.2.1 Energy demand

257,976 145,200 91,934

2011 2012 2013 2014

Graph 1. Energy Consumption & Reduction Patterns in Kosovo, KEDS, 2015

3.1 EXPENSES AND LOSSES DUE TO UNRELIABLE ENERGY

3.1.1 Average Annual Expenses

(a) Generator Purchases by businesses depreciated in five years (This is the

(g) Additional costs to replace losses to:

Micro Small Medium Large Average

The survey found that a nationally representative business spends an average of

Micro Small Medium Large Average

Product/Raw material € 397 € 221 € 1,180 € 1,567 € 457

Inventory € 191 € 214 € 473 € 238 € 233

Data and information (loss in computer

Total € 1,147 € 829 € 2,579 € 16,029 € 1,462

Micro Small Medium Large Average

Alternative electricity supply expenses € 1,817 € 2,539 € 5,526 € 11,872 € 2,642

Additional costs to replace losses € 1,147 € 829 € 2,579 € 16,029 € 1,462

Total Expenses € 2,963 € 3,368 € 8,105 € 27,902 € 4,104

Trade Production Services C/E/T Other Average

Expenses Total € 2,467 € 3,118 € 2,573 € 3,546 € 2,067 € 2,642

Table 8. Average Annual Costs to Replace Losses per company by industry

Trade Production Services C/E/T Other Average

Product/Raw material € 366 € 837 € 427 € 533 € 322 € 457

Table 9. Total Expenses per company by industry

Trade Production Services C/E/T Other Average

Total expenses € 2,467 € 3,118 € 2,573 € 3,546 € 2,067 € 2,642

Graph 2. Distribution of expenses for an average business in Kosovo

3.1.2 Average Annual Estimated Monetary Losses

hours per day