The pronounced lack of electricity during the year 2007 will slow down the growth rate
“This period has identified a series of structural weaknesses of the economy, among which the primary remains the solution to the energy crisis and the guarantee of energy supply. The fast and definitive solution to this problem will be an impetus to achieving the programmed rates of economic growth”
The deep energy crisis that remains without solution is currently expected to negatively affect the economic situation of the country. According to the specialists, the Albanian economy is expected to face an added cost during this period, which might be a new barrier that defies a solution. The only solution to the catastrophic condition in which the country finds itself is rainfall, which cannot pour down in the middle of July or August, as the government predicts. This crisis, which is expected to remain unchanged at least until the end of fall, the time when we can expect rainfall that could relieve the situation at hydropower plants, has lead the Governor of the Bank of Albania to call the energy crisis the main obstacle to a potential failure to achieve the expected rates of economic growth.
Energy production cut in half
In the meanwhile, according to the data of the Bank of Albania, the domestic production of electricity marked a noticeable annual decline of about 51.2 percent during the period January- May 2007, mainly a result of the unfavorable hydroelectric situation.
In these conditions, in order to supply energy to the country, the Albanian Energy Corporation has had to increase electricity imports five-fold, in annual terms. While 1.4 million kWh of energy has been imported, it is expected that another 1 million must be imported until the end of the year. The low production levels and the high import levels have negatively affected the financial balance statement of the Albanian Energy Corporation. Family and non-family consumption has witnessed declines during this period, being respectively 3.3 and 1.9 percent lower than last year. The administrative measures undertaken by the Albanian Energy Corporation had an impact in the increase in payments, while network losses marked an annual decline of about 21 percent. Despite the measures taken and those expected for the improvement of the situation in the country, the Albanian Energy Corporation still states that the limitations of the energy supply will continue, underlining the dimensions of the problem and the priority that its solution should take.
Energy crisis and prices towards escalation
The Albanian Energy Corporation is facing millions of dollars in losses from the differences between the purchase and selling price of electricity. During the last two years the energy prices in the region and wider area have increased considerably, but the large network losses have been the justification that the government has given for not having raised the price yet.
