The confection-businesses, known in Albania under the general name of “fa谮ists” (fasonist촩, asked for compensation in electric energy price increases, reported the local media (Agon, 20.10.2009). Both electric energy operators KESH (Korporata Elektroenergjetike Shqiptare) and OSSH (Operatori i Sistemit t롓hp쳮darjes) have asked for price increases and, as result, a substantial increase in the price of electric energy in Albania is foreseen for the following year (see former Tirana Times issue, 16.10.2009). Shqip (15.10.2009) suggests this increase may reach 31 %. If it happens, this will be the largest electric power price increase seen in Albania, stated the newspaper.
The confection-businesses operating in Albania, which are grouped in one of the strongest business confederations active in the country, have explained that the intended increase in electric energy prices will increase their costs which they cannot pay through a successive increase of the confection-business prices since businesses in this sector have running contracts with fixed prices.
At the end of the month, ERE (Enti Rregullator i Energjis멠will prepare a meeting with parties interested in the increase of the prices (the electric energy operators) and will hear their arguments for the intended increases, informs Agon. ERE which is the Energy Regulatory Entity which operates in Albania is expected to form an official decision no later than the 15th of December 2009.
While yet unsure as to what level of increase will be admitted and allowed by ERE, the media reports that the Energy Regulatory Entity will review also the rate of consumption which will influence the increase. Actually, families with a maximum consumption of 300 kwh/month pay 7 Albanian Lek per kw (net of the value added tax). This is nearly 0.07 US Dollars per kw (net of the value added tax). Families with a consumption greater than 300 kwh/month pay 12 Albanian Lek per kw (net of the value added tax). This is nearly 0.12 US Dollars per kw (net of the value added tax).
The media suggests that besides an increase in the per kw price, a lowering of the maximum between the two groups of tariffs is expected. From 300 kwh/month this maximum is expected to fall to 210 kwh/month.
OSSH is the operator who takes care of the distribution of the energy. KESH is the operator who takes care of the production as well as the importation of the energy. ERE is the regulatory entity of energy in the country.
76 % of the shares of OSSH were sold to the Czech Cez Group in June 2009. This later group has engaged to modernize the distribution network and asked for a price increase. This was rejected for 2009 and the company was encouraged to resubmit its demand in 2010.
The price increase demanded by KESH was more unexpected. Besides the price increases asked for by OSSH and KESH, a lowering of the tariff limits by ERE will contribute to price increases in electric energy in Albania in 2010.
