“I am not worried about dismissal voices. I will continue my job with the structures and the results will even be better,” said CEZ’s state administrator Dollapi
TIRANA, Sept. 23 – With a new government having taken over, CEZ Shperndarje’s state administrator Sahit Dollapi has made it clear he does not intend to resign and believes Energy regulator ERE will not dismiss him because of his positive performance as CEZ’s temporary administrator during the past eight months. Sahit Dollapi, a former director of the OSSH distribution operator just before it was taken over by the Czechs in 2009, has been accused by the Socialist Party of mismanaging the distribution operator for personal and political gain. Dollapi, who is a senior member of the opposition Democratic Party, also served as director of the Tirana water supply enterprise until taking over as CEZ’s temporary administrator.
“Before taking a decision, ERE must evaluate the work carried out until now,” said Dollapi. He was speaking last weekend during the inspection of the Farka substation outside Tirana, the first investment with the distribution operator’s own revenues since 2004.
“Work is my main duty. I continue doing my job as long as the structure which appointed me takes another decision. I am not worried about dismissal voices. I will continue my job with the structures and the results will even be better,” said Dollapi. He described the Farka substation as one of the most important investments because of also improving electricity supply in downtown Tirana apart from suburban areas. Work on the construction of the Farka substation started two months ago and is expected to conclude within the next few days.
The CEZ administrator said his target was to increase the bill collection rate to 90 percent and reduce grid losses to 37 percent.
Arben Seferi who is rumoured as Dollapi successor in CEZ was a public works director in 2009 at the Municipality of Tirana which was led by current Prime Minster Edi Rama.
Meanwhile, Energy regulator ERE has confirmed there is no initiative to dismiss CEZ’s state administrator Sahit Dollapi. ERE says that there is no decision on Dollapi’s dismissal and that Arben Seferi who has been rumored in the media as the person to replace Dollapi has not participated in any competition and cannot have been appointed in this post. ERE which is the institution legally entitled with the appointment and dismissal of the CEZ administrator says the current CEZ administrator appointed since January 10, 2013 can be replaced only in case of resignation or dismissal.
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. The latest energy report published by the country’s state Institute of Statistics (INSTAT) shows grid losses in the first half of this year dropped by 4.6 percent to 37.2 percent compared to the same period in 2012 when CEZ Shperndarje distribution operator was under the Czechs’ administration.
Electricity supply guaranteed
CEZ Shperndarje’s state administrator Sahit Dollapi says the suspension of the tender on electricity imports does not endanger power supply. Inspecting works on the 20 KW line in Farka, Dollapi said CEZ Shperndarje distribution operator had been authorized by Energy regulator ERE to purchase electricity for its grid losses until December 2013 on a monthly basis.
Dollapi said grid losses have dropped by 7 percent compared to the same period last year, considerably reducing the company’s expenditure.
“Grid losses in August 2013 were at 39.7 percent, 7 percent less than last year’s 46.5. Since January 2013, grid losses have dropped by 5 percent while the bill collection rate has increased,” he said.
ERE decided to suspend CEZ’s tender on the purchase of 1.3 million GWh for 2014 so that it could be carried out by the new government.
Arbitration dispute
The new Albanian government will also have to handle relations with CEZ distribution which in January 2013 was stripped of its Albania licence by the previous government because of 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,” says CEZ. 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.
