Impact of Legal Regulations and the Free Market on Managerial Accounting Decision-Making in KESCO

Kosovo’s electricity market is undergoing a fundamental transformation. The decision of the Energy Regulatory Office (ERO) requiring business customers with more than 50 employees or annual turnover over €10 million to enter the free market from 1 June 2025 designated KESCO as the universal service supplier and obliges customers outside these criteria to prove the right to regulated tariffs[1]. Liberalisation has sparked broad public debate: business representatives warn of price increases and job losses[2], while the government sees it as a legal obligation and a step towards integration with the European Union[3]. This study analyses the impact of legal regulations and the free market on managerial accounting decision‑making in the company KESCO, integrating empirical data, interpretation of accounting and financial reporting laws and managerial accounting theory. The second half of the paper focuses on the effects of implementing International Financial Reporting Standards (IFRS) and managerial accounting on cost management, planning and performance control.