ERE says that it is now up to the Economy Ministry and the new government to decide on the continuation of this tender as long as the company is under temporary state administration
TIRANA, Sept. 9 – One day before the final deadline on the submission of bids for the purchase of 1.3 million MW of electricity for 2014, energy regulator ERE has decided to suspend procedures for the CEZ Shperndarje tender. Through an official letter dated September 6, CEZ distribution operator announces that ERE has demanded the suspension of the procedure for electricity so that it can analyze the conditions of the invitation for bids. Shkelqim Bozgo, the acting head of ERE told reporters that after detailed analysis, it had been concluded that as long as the tender has a long-term effect and the current status of CEZ Shperndarje is under temporary state administration, the tender on electricity imports for next year must be suspended.
ERE says that it is now up to the Economy Ministry and the new government to decide on the continuation of this tender as long as the company’s expropriation process is underway as the Economy Ministry owns 24 percent, while the Czechs have a 76 percent share.
CEZ Shperndarje opened procedures for the purchase of 1.3 million MWh for 2014 on August 5 sending invitations to 21 companies. The bids should have been submitted to CEZ Shperndarje not later than September 10, 2013 while the winner was supposed to be announced five days later on September 15.
The tender was estimated at around Euro 90 million considering last year’s average prices of Euro 68/MW. The announcement of the new tender comes at a time when a new Socialist Party-led government would take over, but CEZ has described it as a normal procedure securing electricity for next year. The Socialists have accused CEZ’s state administrator Sahit Dollapi of abusing CEZ Shperndarje and politically using it during the electoral campaign for the June 23 elections which the Socialist Party-led coalition won by a landslide. While Dollapi’s appointment depends on the Energy regulator ERE which also appointed him as the company’s temporary administrator last January after the Czechs had their licence revoked, the warned restructuring of the company is expected to sack Dollapi, known as a supporter of the Democratic Party.
Meanwhile, Albania faces an international trial with CEZ Group which was stripped of its Albania licence last January because of failing to meet contract obligations.
Czech Republic-based CEZ Group, whose Albanian power supply subsidiary CEZ Shperndarje, was stripped of its licence last January, says it has officially initiated international arbitration procedures to claim compensation for the damage incurred in Albania. CEZ says it will claim Euro 200 million in international arbitration while the Albanian government claims that CEZ’s failure to fulfill its contract obligations over imports, investments and reducing grid losses caused the state USD 1 billion in damage.
“The arbitration proceedings have been formally initiated by sending a ‘notice of arbitration.’ However, this does not prevent a potential out-of-court settlement between the parties.”
The CEZ Group entered the Albanian market in May 2009 by acquiring a 76 percent equity stake in the Albanian power distribution company for Euro 102 million.
CEZ blames the situation in Albania on tariff disputes with the Energy Regulatory Entity and heavy fines imposed by local authorities.
Grid losses in Albania’s distribution system, which since January 2013 has been back under state administration after Prague-based CEZ Group had its Albania licence revoked, have registered a slight drop, but yet remain high at around 37 percent of electricity fed into the grid.
