NGOs form coalition to oppose higher power prices

TIRANA, Dec. 2 – A coalition composed of 35 civil society groups has warned it will initiate legal action against the Albanian Energy Regulatory Agency (ERE) if it decides to increase electricity prices in its scheduled meeting of December 7.
In a statement issued on Tuesday, the Coalition for Consumer Protection, led by the Consumer Protection Office, says ERE has no legal grounds to examine the request by the three monopoly operators without having the annual balance sheet covering the January 1 – December 31 period to assess the real costs of private CEZ Distribution, state-owned KESH electricity producer and transmission operator OST.
“The financial report of CEZ distribution cannot be issued before 2010 ends,” says the group of NGOs led by lawyer Altin Goxhaj.
The coalition says it will file lawsuits for abuse of power against ERE commissioners if they put the examination of the request by the 3 operators on the agenda of the December 7 meeting. NGOs says “ERE, which also violated the obligation to provide a regular contract between consumers and Czech company CEZ for the past two years, should approve new contracts protecting consumers from possible damage caused by voltage fluctuations.”
The coalition says ERE has no grounds to increase electricity prices for the second year in a row considering the poor financial situation of a considerable number of consumer, CEZ’s inability to reduce non-technical losses and the good situation of public operators KESH and OST because of the favourable hydro situation, describing the request by the three monopoly operators as unacceptable.
ERE, which is the decision-making body on electricity prices has confirmed that CEZ, the Czech Republic company owning the majority stake in the Albanian electricity distribution operator (former OSSH, current CEZ Distribution) has a applied for an average increase of 12 percent in electricity prices to cover the company’s rising costs and continue its investments. Meanwhile, state owned companies, Albanian Power Corporation (KESH) and Transmission System Operator (OST) have also submitted requests for increases in their production and transmission tariffs.
Under the newly proposed changes, average prices applied to different categories of customers by CEZ would increase to 10.51 lek/kWh, up from 9.53 lek/kWh. KESH and OST have also requested significant price increases of 55% and 21% for their tariffs to accelerate the payment of their debts.
ERE director Bujar Nepravishta has neither confirmed nor denied a possible increase in electricity prices, whose bills accounts for a considerable amount of income for most pensioners and people in need. Last Year, CEZ had requested a 24 percent price increase in electricity for 2010 but the Energy Regulatory Entity approved only a 13 percent increase which entered into force starting from January, 1 2010.
In March 2009, CEZ signed a contract with the Albanian government after buying 76 percent of OSSH’s state-owned shares for 102 million euros.