TIRANA, Oct. 30 – The situation in the country’s electricity system continues remaining critical despite heavy rain slightly improving water levels in country’s northern Drin Cascade, where the three biggest hydropower plants, accounting for the overwhelming majority of domestically generated electricity are situated. Prolonged drought which led to water levels in HPPs nearly reaching their stoppage point, and a chain of debts by Power Corporation KESH and Czech-owned distribution operator CEZ Shperndarje further complicates the situation at a time when daily imports account for around two-thirds of the country’s electricity needs. During the past few weeks, power corporations KESH has been importing an average of around 11 mln kWh/day, worth around Euro 700,000 per day while the remaining 7 mln kWh has been ensured from domestic hydro generation. A Euro 40 million loan to cash-strapped KESH is enough to meet power needs only until the end of November if imports continue at these levels, experts warn. Government has recently announced it is negotiating with the World Bank over a Euro 100 mln to secure electricity imports. CEZ’s inability to meet its legal obligation of importing power losses in the distribution system, estimated at around 50 percent, has further aggravated the situation and forced government to seriously consider removing the distribution licence of the Czech owned operator, but the decision by the Energy Regulatory Entity has been postponed for three consecutive times.
Recent rainfall has increased water levels in the biggest Fierza hydropower plant by only 2.5 metres to 260 metres which is around 20-30 metres below its historical average rate. Water flows in Fierza currently at 650 m3/s, almost are being saved to increase water levels and use it efficiently.
Protests
Power cuts to many urban and rural areas not paying power bills or failures in the distribution network because of bad weather has sparked reaction among local communities who have staged protests against CEZ and blocked even national roads, claiming collective punishments. Most protests have taken place in the northern Shkodra and Lezha regions, as well as Fushe-Kruja town, some 20 km from Tirana. CEZ has confirmed its commitment to continue power cuts to debtor customers.
Opposition worried over pyramid chain of debts
Socialist Party MP Arben Ahmetaj says the electricity system in Albania has turned into a new pyramid scheme which has accumulated USD 1.2 billion in debts.
“We are dealing with mismanagement of the whole electricity system starting from producers to consumers. The Fierza water levels, at 259 metres, is in deep crisis and has no possibility to contribute to electricity generation. While daily power consumption is 18 mln kWh, only 6 mln kWh is domestically generated while the remaining part is imported costing the state budget Euro 500,000 a day. KESH is obliged to borrow, further deepening its financial collapse while government and CEZ are the source of the issue,” said Ahmetaj.
The Socialist Party MP said government has not been able to manage and monitor CEZ and has passed responsibility to citizens. “Albanians pay 200% more in power prices compared to 2005 and government is responsible for this,” said Ahmetaj.
According to him, power corporation KESH has Euro 200 mln in debts while CEZ owes 140 mln Euros only to KESH.
