CEZ insists on electricity price increase

TIRANA, September 29 – The Czech Republic company owning the majority stake in the electricity distribution operator (CEZ) has reiterated its request for price increases, saying the measures is necessary to cover losses from unpaid bills and new network investments.
“It should be clear that only after everybody pays bills, electricity prices could drop,” said CEZ director Josef Hejsek at a press conference last weekend when the company announced CEZ Distribution as its name replacing the traditional OSSH.
Asked on the Economy Ministry’s stance on proposed price increase, new minister Ilir Meta said the final decision was up to the energy Regulatory Entity (ERE) but the ministry will also give its opinion assuring of public transparency.
“The economy ministry will support every effort by the company to reduce grid losses and abuses in electricity consumption which automatically leads to lower costs for Albanian consumers,” said minister Meta. He assured the ministry will insist in transparency between the company and consumers, especially on price calculation and billing, punishment of abuses and relations with other market operators.
The ministry says it will also coordinate work to ensure that electricity is paid by all public institutions.
The electricity distribution operator (OSSH), whose majority stake is owned by Czech Republic’s CEZ, has announced it has applied for a 11.92 percent price increase for 2011 to cover the company’s rising costs but the final decision is up to the Energy Regulatory, the decision-making body.
CEZ says another price increase is necessary to justify the company’s current investments in the distribution system and make new ones where necessary.
Last Year, CEZ had requested a 24 percent price increase in electricity for 2010 but the Energy Regulatory Entity approved only a 13 percent increase which entered into force starting from January, 1 2010.