Water levels in the biggest Fierza hydropower plant have increased by almost 10 metres to 270 metres in the past few days, but still remain 20 metres below their maximum levels
TIRANA, Dec. 4 – Albania’s Power Corporation, KESH, has temporarily stopped electricity imports after recent rainfall considerably improved the hydro situation in the northern Drin Cascade where the country’s biggest hydropower plants are situated. KESH, which is handling all imports on its own because of financial inability by Czech-owned distribution operator CEZ Shperndarje, already on the verge of departure from Albania, has cut imports from almost 80 percent of the country’s needs in the past two months to only 20 percent in the past few days on increasing domestic hydro-electricity generation. Data show water levels in the biggest Fierza hydropower plant have increased by almost 10 metres to 270 metres in the past few days, but still remain 20 metres below their maximum level. Last October, water levels in Fierza dropped to 260 metres nearly reaching their stoppage point, and were around 20-30 metres below their historical average rate. Some 80 percent of the country’s electricity needs were handled with imports costing the state budget around Euro 700,000 a day for several weeks. Water levels have also considerably improved even in the other Koman and Vau i Dejes hydropower plants of the Drin Cascade.
KESH officials say that under the government decision, the Corporation can continue electricity imports for the Czech-owned distribution operator until the end of this year and that starting from next January CEZ will have to make imports for its grid losses on its own. KESH says CEZ owes the Corporation 30 billion lek (around Euro 210 million) in unpaid electricity bills.
Albania’s Energy Regulatory Entity (ERE) has recently ruled Czech-owned distribution operator CEZ Shperndarje, which is seriously considering leaving Albania and addressing arbitration court over disputes with government, will have to compensate state-owned power corporation KESH over its failure to make compulsory electricity imports this year. Since last summer, CEZ has failed to make compulsory imports to cover the high grid losses in the Albanian distribution system, currently at around 50 percent, nearly double compared to three and a half years ago when CEZ bought 76 percent of shares for Euro 102 million. Power corporation KESH, which has been making continuous power imports during this year because of prolonged drought affecting domestic hydro-electricity generation, says CEZ’s failure to fulfill its obligation of covering grid losses with imports has further aggravated its financial situation. CEZ, which is also in severe financial straits, says the situation is a result of Albanian consumers not paying electricity bills.
Government awarded KESH 2 billion lek (Euro 14 million) from its contingency funds in early 2012 to make electricity imports, a Euro 40 million few months ago and is also negotiating with the World Bank over a new USD 100 million loan to cash-strapped power corporation to secure electricity imports.
Apart from the controversial article lifting the 60 percent of the GDP ceiling on the public debt , the draft law on the 2013 budget also foresees that guarantees to state-owned power corporation KESH to borrow for electricity imports will no longer be calculated in the public debt stock.
