Three companies of Elektroprivreda Srbija (EPS) – the Serbian state-owned energy company – registered with headquarters in Kosovo, have debts exceeding half a billion euros.
Kosovo Power Plants, Kosovo Surface Mines and Elektrokosmet are ranked among the 100 biggest losers in Serbia, according to financial reports published in the country's Economic Register, which were analyzed by Radio Free Europe.
These companies, with fictitious addresses in Kosovo, continue to operate 25 years after Serbia lost control over the assets and management of Kosovo's energy system.
The production and distribution of electricity are in the hands of Kosovar companies, while these three Serbian companies, with over 3.100 employees, operate from Belgrade.
Data from the Serbian Business Registers Agency (APR) show that they continue to accumulate debts, with a total deficit exceeding 580 million euros.
What do they do considering that they do not operate in Kosovo?
These three companies, for official Pristina, do not exist, because they are not recognized by Kosovo laws.
But official Belgrade, which opposes Kosovo's independence, continues to consider itself the owner of the power system facilities in Kosovo.
Property disputes, as well as other issues that complicate relations between Pristina and Belgrade, are topics of dialogue that the two countries are developing, under the mediation of the European Union.
This process, however, has been blocked for years and the Energy Agreement reached is not fully implemented.
Financial reports, publicly available and analyzed by Radio Free Europe, show that three companies – Kosovo Thermal Power Plants, Kosovo Surface Mines, and Elektrokosmet – actually provide services to Elektroprivreda of Serbia.
Their workers are mainly engaged in various auxiliary jobs within the EPS system: from the repair and maintenance of electrical power facilities to meter reading in Serbia.
Their financial reports also state that these companies employ workers who, after the 1999 war, were "fired from their jobs," while the firms themselves were "prevented" from carrying out their activities in Kosovo's energy system.
Even though they have accumulated losses, these three companies with fictitious addresses in Kosovo announce tenders and provide work to various private and state-owned companies in Serbia.
In 2025 alone, they have concluded more than 80 contracts and agreements worth over 5 million euros, REL found, analyzing official data from the public procurement portal.
For the needs of these enterprises, for example, automobiles, trucks, buses, fuel, machines, tools and various construction equipment and materials have been purchased.
Money was also spent on mobile phones and computer equipment.
EPS and its three subsidiary companies with addresses in Kosovo have not responded to REL's questions regarding their operation.
There are also no answers to questions regarding the purchase of various goods and services, considering that the companies do not carry out their core activity - the production and distribution of electricity.
In many of these tenders, the jobs were won by companies that had no competition, because they were the only ones to submit a bid.
"When there is no competition, suspicions of corruption arise," says retired professor at the Faculty of Technology and Metallurgy in Belgrade, Petar Djukic.
REL also asked the Serbian Government and the Ministry of Energy there what the plan is for EPS companies with addresses in Kosovo, but, as of the publication of this article, it had not received a response.
“Clean spending”
Kosovo Power Plants, Kosovo Surface Mines and Elektrokosmet are completely financially dependent on the parent company, Elektroprivreda.
And they are not the only ones, as EPS also owns several other subsidiary companies in Serbia.
"EPS has unproductive enterprises under its control and money within this system is being wasted," Djukic assesses.
To enterprises with fictitious headquarters in Kosovo, EPS transfers money for employee salaries and other necessary expenses so that they can function.
"They are not formally employed by EPS, but they receive income from EPS," adds Djukic.
According to data from Elektroprivreda's financial report for 2024, over 54.7 million euros were spent solely on the salaries of employees of companies headquartered in Kosovo.
But, salary expenses are not the only funds transferred to them.
EPS also pays for ancillary services within the Serbian energy system, in which these three companies are engaged.
"EPS gives them jobs that they could – most likely – do themselves," emphasizes Djukic.
The Fiscal Council of Serbia, an independent state body that analyzes public revenues and expenditures, describes these transfers to the three companies as “pure spending.”
"Therefore, these payments should be excluded from the EPS balance sheet, as they do not represent expenses of the company's own activity, but a type of social assistance," the Fiscal Council of Serbia assessed in its 2022 report.
It is also not clear whether all 3.100 employees of these enterprises are actually engaged every day.
New hires
Although the official objective is to reduce the number of employees, the three EPS enterprises headquartered in Kosovo, during 2024, have accepted new employees with permanent contracts - ten each at the Kosovo Power Plants and the Kosovo Surface Mines and 18 others at Elektrokosmet, financial reports show.
"This is done for populist reasons. You keep these people employed within a large system. EPS is a giant reservoir of votes for any government, including this one," says Djukic.
The opposition movement in Serbia "Kreni-promeni" has listed the Kosovo Power Plants and the Kosovo Surface Mines among public enterprises where, according to it, employees have reported pressure, threats and blackmail from management.
According to their claims, employees have been asked – under threat of losing their jobs – to attend rallies of the Serbian Progressive Party (SNS), at a time when Serbian President Aleksandar Vučić is facing major anti-government protests.
Radio Free Europe/Radio Liberty has been unable to independently verify these claims, while the SNS has not responded by the time of publication of this article.
What do Kosovo's thermal power plants (not) do?
Kosovo power plants are registered within the Serbian energy system as electricity production companies, although they have no control over power plants on the territory of Kosovo.
This company has over 770 employees, who, according to financial reports, are mainly engaged in repair and maintenance work for various sectors of EPS.
The list of employees of this company also includes 88 workers from Kosovo's public enterprises, established within the Serbian parallel system, which official authorities in Pristina consider illegal.
But what exactly do these workers do and where are they engaged? The company did not respond to Radio Free Europe's questions.
EPS is the sole financier of the Kosovo Power Plants – it has paid 13.7 million euros for salaries and other essential expenses alone, while another 2.5 million euros have been transferred for the services the company provides to the Serbian energy sector.
However, Kosovo's thermal power plants have been operating at a loss for years.
These losses, among other things, are justified by debts from foreign loans taken out before 1999, as well as the inability to use property in the territory of Kosovo.
At the end of 2024, the total losses of the Kosovo Power Plants amounted to over 355 million euros, ranking this company in tenth place among the largest loss-making enterprises in Serbia.
Meanwhile, during 2025, this company has signed 50 agreements and contracts with private and state-owned companies in Serbia, worth over 970 thousand euros.
Various materials and work tools were also purchased, professional training and medical check-ups for workers were paid for, as well as equipment maintenance.
The most valuable contract – over 180 thousand euros – was awarded to a private company, which is responsible for the supply of protective clothing and equipment. The company had no competition, as it was the only one to apply in the competition.
Among the agreements signed was a contract with Telekom Serbia for two years of mobile phone services, worth over 57 thousand euros. Telekom was also the only bidder.
Kosovo's thermal power plants did not respond to Radio Free Europe's questions regarding their operation and the tenders they announce.
What does Kosovo Surface Mining (not) do?
Lignite and coal mining is registered as an activity of the Kosovo Surface Mines enterprise, even though – for more than 25 years – it has no control over Kosovo's mines.
Today, according to the financial report, the company has over 1.900 employees.
As it is said, a large part of them perform service tasks for Elektroprivreda of Serbia companies – for example, they repair and maintain thermal power facilities and read energy meters.
During 2024, EPS transferred over 50 million euros to this company – 41.7 million euros for employee salaries and operating expenses of the enterprise. For the works where EPS has engaged this company, an additional 8.4 million euros have been transferred.
At the end of 2024, Kosovo Surface Mines recorded a positive result, with a profit of 1.4 million euros.
But, in addition to positive performance, losses from previous years have also accumulated in their accounts.
Thus, Kosovo Surface Mines is ranked 49th among the most loss-making enterprises in Serbia, with more than 111 million euros in debt.
The debts are justified by arrears on foreign loans taken out before 1999, as well as by the fact that the company does not have property in Kosovo at its disposal.
But the outstanding debts do not prevent it from operating in Serbia.
The public procurement portal records 23 contracts and agreements that Kosovo Surface Mines concluded during 2025 with state and private companies.
The value of these works exceeds three million euros.
Through tenders, the company has purchased construction materials, work clothing and protective equipment, as well as computers and systems for digitizing archives.
According to the contracts, the vehicle fleet is also being updated and the purchase of minibuses, trucks and cars has been awarded to the same private company that was the only one to apply in the competition.
The most valuable contract was awarded to the Serbian Oil Industry.
The company has been tasked with purchasing fuel worth over 1.5 million euros.
She was the only one who applied to this competition.
Kosovo Surface Mines did not respond to REL's questions about their activities and the tenders they announce.
What does Elektrokosmet (not) do?
"A reliable partner and pillar of support in the supply and distribution of electricity in the northern part of Kosovo" - this is the description on the official website of the Elektrokosmet company.
However, this has not been working in Kosovo for a long time.
According to data from the company's financial reports, electricity supply to Serb-majority municipalities in northern Kosovo was provided by this company until December 2020.
Kosovo authorities considered it illegal, as Elektrokosmet did not have the appropriate permit for the activity.
The supply and billing of energy in the northern municipalities has been taken over by the company Elektrosever in recent years.
It is owned by Elektroprivreda of Serbia, but is registered under the Kosovo system and operates under Kosovo laws – which is also one of the points of the Energy Agreement between Pristina and Belgrade.
At the beginning of 2024, Elektrosever began sending the first electricity bills to customers in four municipalities: North Mitrovica, Leposaviq, Zveçan and Zubin Potok.
Previously, residents of these municipalities did not pay for electricity for about 25 years.
The reason why Elektrokosmet continues to operate within the Serbian system and announce tenders, even though the company itself admits that it no longer controls the electricity capacities in Kosovo, has not been explained to Radio Free Europe.
Million-dollar debt for Elektrokosmet
According to the latest financial report for 2024, Elektrokosmet generates most of its revenue from providing services to branches of Elektroprivreda Srpska.
The company has 441 employees.
According to the report, employees are engaged in reading energy meters in Belgrade and Niš, controlling metering stations, at EPS counters, and in other auxiliary work.
However, year after year, Elektrokosmet records losses in its financial balance.
The financial report for 2024 shows that the company ended the year with a loss of 12.4 million euros.
Elektrokosmet's total loss is much larger – 115.5 million euros, due to debts accumulated over the years.
In the same report, Elektrokosmet justifies the debts with "political" reasons and a "high percentage of commercial and technical losses."
More than one million euros for Elektrokosmet tenders
Even though it is making losses and is not carrying out the activities for which it was established, Elektrokosmet continues to purchase equipment and pay for services for various companies in Serbia through tenders.
According to data published on the public procurement portal, during 2025, Elektrokosmet signed contracts worth over one million euros.
The most valuable was the agreement with the Serbian Oil Industry – a two-year contract for fuel supplies for official vehicles, worth approximately 770 thousand euros.
The Serbian Oil Industry was the only one to respond to this tender.
During 2025, Elektrokosmet also signed two-year agreements with several private companies for vehicle maintenance and servicing, worth around 350 thousand euros.
The four companies that won these jobs were the only ones that applied for the tender.
Other registered branches of Elektrokosmet in Kosovo
In addition to its headquarters in Belgrade, Elektrokosmet has eight other branches in Kosovo registered in the Serbian Economic Register.
The branch in Mitrovica is registered at the address "Filip Vishnjiq bb", where the headquarters of the Elektrosever company in the Kosovo system is located.
Two branches are registered in Pristina, and one each in Gjakova, Prizren, Gjilan, Peja and Ferizaj.
However, there are no branches of Serbian state-owned companies in these cities.
Most of the public enterprises and institutions operating in the Serbian parallel system, which Pristina has deemed illegal, have been closed in Kosovo and relocated to Serbia.
Kosovo addresses of EPS companies – “only on paper”
According to data from the Serbian Economic Register, the headquarters of two EPS enterprises – Kosovo Surface Mines and Kosovo Thermal Power Plants – are listed within the power complex in Obiliq, near Pristina.
These locations are today home to the facilities of the Kosovo Energy Corporation.
But, in fact, these two EPS companies operate from their addresses in Belgrade.
The headquarters of the Kosovo Power Plants are located in the center of Belgrade, at the address "Obiliqev venac", while the headquarters of the Kosovo Surface Mines is in the Çukarica neighborhood of Belgrade.
The third EPS company, Elektrokosmet, claims to be headquartered in Pristina.
It is registered at the address "Krala Petra I Oslobodioca" – a street that no longer exists by that name, as it is now named after former US President Bill Clinton.
Today, the Kosovo electricity distribution company – KESCO – is located there.
Meanwhile, Elektrokosmet's headquarters in Belgrade is registered on "Arçibalda Rajsa" street, in the Çukarica neighborhood.
Call for EPS reform
Although, as the largest state-owned company, it records millions in revenue from the production and sale of electricity, EPS also remains the company with the largest losses in Serbia.
According to data from the Business Registry Agency, in 2024, EPS was the most successful firm in Serbia, with revenues of over 200 million euros.
However, accumulated losses from previous years, amounting to 2.4 billion euros, ranked it in first place for the largest losses.
The International Monetary Fund has also requested the Serbian Government to reform the EPS, with the aim of reducing losses.
In the 2024 report, EPS announced that the reform is under development, being implemented in collaboration with international consultants and local professional teams.
The goal, according to EPS, is to improve efficiency and increase transparency in the company's management.
Regarding reforms for companies registered in Kosovo, EPS has not responded to Radio Free Europe/REL.
