CEZ-owned company disagrees with regulators’ audit on network losses due to theft and technical problems.
TIRANA, Jan. 19 – Albania’s power distribution monopoly, OSSH, has taken the country’s energy regulatory body, ERE, to court over ERE’s failure to meet the the company’s request for a higher increase in the price of electricity.
The power distribution company’s main argument to the Tirana Court will be that ERE’s audit numbers on the amount of power being lost due to theft and system amortization do not match reality.
CEZ/OSSH says a study it carried out proves the level of electricity losses during 2008 and early 2009 was 35.7 percent, while ERE claims a level of about 33 per cent.
The conflict started in December, when ERE approved an electricity price increase of 13 percent, citing a 33 percent in losses.
This decision was opposed by CEZ, which owns 75 percent of OSSH, because it says the losses are higher, 35.7 percent.
The recently-privatize OSSH also argues that price increase it had asked for, 24 percent, was included in the contract with Albania’s government when CEZ Group, a Czech company, purchased a majority stake in OSSH.
The government is set to compensate OSSH for a slower increase in prices and direct funding in a pending agreement, but the level of losses remains to be settled in court.
An OSSH statement released this week said the way the company was being treated was an attack on foreign investors.
“We will take all necessary legal steps to protect the interests of our consumers and investors,” the company said.
For their part, Albania’s energy officials told the Albanian media this week, they will win if the dispute ends up in court.
Since OSSH’s privatization in early 2009, that saw CEZ Group take over 76 percent of the shares for 102 million euros, an entangled web of financial responsibilities, contractual obligations and political and social pressure on electricity prices has meant that the company has been involved in several scuffles with Albanian authorities.
