TIRANA, Aug. 11 – KESH, the Albanian Electro-Energy Corporation, has asked government authorities to increase the price it charges for power next year in an effort to cope with the increase in pricesin the world energy market and ease pressure on its budget.
The country has been involved in a serious power crisis this summer with daily power cuts of up to 15 hours due to the lack of production and importing capacities.
KESH has asked the Regulatory Entity of Energy, or ERE, to increase power prices in 2008 by 20 percent for individuals to 93 percent for businesses.
Such an increase is a frightening prospect for Albanian consumers and businesses which are currently suffering grave consequences from the energy crisis.
Albania produces the bulk of its electricity, or 95 percent, from the hydroelectric stations mainly in the northern Drini River. As the country has suffered a long dry summer it is currently producing less than six million kWh.
At the same time, the corporation has been striving to find electricity in the Balkan market, even though it has also suffered from the same crisis this summer. It has also limited importing capacity of up to 10-11 million kWh and has imported only five million kWh.
KESH’s most serious problem remains collecting of consumers’ payments. In many areas in the north, as well as throughout the country, people refuse to pay for electricity they consume.
Another problem remains power losses within the network which may be as high as 40 percent.
Albania has no alternate power resources.
The Vlora thermo power plant is expected to start construction this September and will be finished in 18 months.
The government says there are many other projects planned in the energy sector totaling up to 6 billion dollars.
This week. the government is expected to conclude a contract on a new elecgtric transmission line with Italy.
Despite that, and depending on the speed of the work, Albanians will still have to cope with power cuts for at least 13 more years, according to a government projections on energy.
