ERE: No reason to increase the power price

The Albanian Power Regulatory Board
(ERE) declared that they see no reason to
increase even further the price of electricity.
According to the head of the Board, Bujar
Nepravishta, “The Board has conducted a
gross calculation and the conclusion is
against the increase of the price of electricity”.
ERE increased by 17% the price of electricity
in March 2008, much less than it was
required by IMF, World Bank and the Albanian
Power Corporation. KESH called the
price increase in March as insufficient to
guarantee positive results. Since then, the
IMF and World Bank have increased their
pressure on the Albanian government to increase
the price of electricity. Both IMF and
the World Bank are hoping for another increase
in the price of electricity in July 2008.
The price increase is going to open the way
for the privatization of KESH and especially
of the OSSH (The Albanian Distribution
Operator).
However, Nepravishta and the other
members of the Board are sure in their calculations.
“It doesn’t turn up to us that KESH
is losing money, since the new prices of electricity
came into effect. We have calculated
and for the period after March 2008, KESH
is making a profit, at least ALL 200 million”,
Nepravishta said.
ERE had separate meetings with both
IMF and the World Bank. In the meeting with
the World Bank, Nepravishta presented the
current energy situation in Albania.
Nepravishta refused that it is necessary to
increase the price of electricity. The World
Bank and ERE agree only in one point: the
increase of the energy prices is harming the
economy, especially the agriculture.
ERE has made it clear that the privatization
of the Albanian Distribution Operator
(OSSH), does not mean that a private company
is going to decide about the price of
electricity. However, ERE representatives
refuse to make public the norm of profit they
are going to allow to the privatized OSSH.
According to ERE, the role of the OSSH
would be to collect the power bills. KESH
is going to produce the electricity and passed
it over to OSSH. KESH is going also to be
responsible for the import-export of electricity.
For the moment, there are no plans to
leave these duties to private companies.