KESH: CEZ owes us 50 mln Euro

TIRANA, Sept. 21 – Czech-owned distribution system operator Cez Shperndarje owes the Albanian Power Corporation, KESH, Euro 50 million for unpaid energy since July 2010, KESH director Engjell Zeqo told reporters this week.
KESH says that prolonged drought since last April and rising demand in summer have forced the company to buy electricity at higher rates from international markets.
The debts CEZ owes to KESH, miscalculations by CEZ in the annual demand for power and rising prices in foreign markets have pushed the national power utility to apply for price increases with the Energy Regulatory Entity.
KESH which manages the country’s biggest hydropower plants accounting for more than 90 percent of domestically-produced electricity, said it is ready to handle rising demand and that it has made the necessary repairs in the river dams to avoid mass flooding.
Rains during the coming months are expected to significantly improve the situation in the northern Drin cascade where the country’s biggest hydropower plants are situated, and KESH might return to electricity exports.
Revenues of state owned Albanian Power Corporation, KESH, in 2010 reached 27 billion lek (around 200 million Euros). The record level of electricity exports were one of the main contributors to the country’s total exports.
Albania’s power distribution operator, CEZ Shperndarje has applied for a 4.5 percent increase in electricity prices for next year citing high inflation rates, increased price of imported electricity and rising power meter costs.
The application has already been submitted to the Energy Regulatory Entity (ERE) which is the decision-making body, but will have to undergo public hearings with all interest groups before ERE takes its final decision early next December.
Government and CEZ were recently involved in a debate after CEZ decided to cut electricity for debtor water supply companies. The Energy Ministry reminded CEZ that the debt it owes to state owned Albanian Power Corporation (KESH) and Transmission System Operator (OST) is far bigger than the debt water companies owe to CEZ.