At Euro 11.7 per 100 kWh in 2012 Albania had one of lowest household electricity prices among 32 European countries, except for Bosnia and Herzegovina, Bulgaria, Romania, and Estonia
TIRANA, May 28 – Albania is one of the few European countries where power prices have remained unchanged in the past three years but yet prices are higher than in four EU and EU aspirant countries, according to a report issued by Eurostat, the statistical office of the European Union. Data from the Eurostat report show that at Euro 11.7 per 100 kWh in 2012 Albania had one of lowest household electricity prices including all taxes among 32 European countries covered in the report, except for Bosnia and Herzegovina, Bulgaria, Romania, and Estonia where power prices range from Euro 8 to Euro 11.2 per 100 kWh.
At Euro 8 per 100 kWh, EU potential candidate Bosnia and Herzegovina has the lowest household electricity prices, followed by Bulgaria at Euro 9.6, Romania at Euro 10.8 and Estonia at Euro 11.2. Compared to the second half of 2011, household electricity prices in these countries rose between 2.3 to 9.2 percent, says the Eurostat report.
In Albania power prices, which take a considerable part of households’ monthly income, have remained unchanged since the end of 2009 when the Energy Regulatory Entity (ERE) approved the latest increase in electricity tariffs.
The average electricity price in the EU27 was 19.7 euro per 100 kWh.
Back in 2011, Albania’s power prices at 11.6 Euro per 100 kWh were higher than in six EU-members and aspirants, including Croatia and Turkey.
Yet, the electricity prices in Albania are relatively considering that Albania has the lowest GDP per capita expressed in purchasing power standards.
The statistical office of the European Union, Eurostat, has revised downward Albania’s GDP per capita expressed in purchasing power standards (PPS) ranking the Balkan country on the bottom of the 37-country list on par with Bosnia and Herzegovina. In its latest report, Eurostat rated Albania’s GDP per capita in PPS at 30 percent of the EU 27 average, down from 31 percent in mid-2012 based on revised purchasing power parities, and the latest GDP and population figures. At 70 percent below the EU 27 average, Albania’s 2011 GDP per capita is also 5 to 22 percent below regional EU candidates Serbia, Macedonia, Montenegro and Turkey and 31 percent below acceding Croatia.
While Albania’s purchasing power stands at less than one-third of the EU 27 average, price levels for consumer goods and services are estimated at 51 percent, showing that the cost of living in Albania is relatively high compared to the small income. A recently released report by Eurostat shows Albania’s total score at 51 percent of the EU 27 average in 2011 is higher than Macedonia’s 45 percent and on par to Bulgaria, both of which have a GDP per capita expressed in purchasing power standards 5 to 14 percent higher than Albania.
Power prices left unchanged
Albania’s Energy Regulatory Entity (ERE) has ruled electricity tariffs for the three market operators, power corporation KESH, transmission operator OST and distribution operator CEZ Shperndarje will remain unchanged until the end of 2013. The energy watchdog argued the decision with situation in the CEZ Shperndarje distribution which since January 2013 has shifted into temporary state administration after Czech Republic’s CEZ Group had its Albania licence revoked over failing to meet contractual obligations.
ERE says that in 2014 it could decide on the update and compensation of all possible financial effects to market operators in the frame of the 2012-2014 regulatory period. Electricity prices for household and business consumers will remain unchanged until 2014 under a previous decision.
ERE officials say they will continue applying the two-tier price level, under which Albanian households will pay 7.7 lek/kWh for a consumption of up to 300 kWh a month and 13.5 lek for each kWh they consume above the 300 kWh threshold (VAT excluded). Average tariffs for business consumers vary from 8.5 lek/ kWh to 10 lek kWh based on low or medium voltage power access. Meanwhile, state institutions pay 11.5 to 14 lek kWh.
Power prices during the past six years since the ruling Democratic Party came to power have increased by 63 percent climbing from an average of 5.71 kWh in 2005 to 9.53 lek kWh currently.
