Watchdog advises more competition in power tenders

TIRANA, Nov. 12 – Albania’s Competition Authority has recommended the electricity distribution operator, the former CEZ Shperndarje, recently rebranded OSHEE after it was taken over under state control from Czech Republic’s CEZ Group, to revise its tender procedures on monthly and annual electricity purchases in order to promote competition. The recommendation targets increasing competition in the electricity purchase tenders by promoting more participation by bidders, ensuring fair and equal treatment of bidders and enabling electronic procurements. The competition watchdog says the recommendations are temporary considering that a new energy law and model are underway.
Albania’s Energy Ministry says it has launched consultations with interest groups to finalize a reform in the electricity sector which is estimated to cost the state budget around $200 million in annual losses.
The draft law expected to be approved by the end of this year targets establishing the legal framework for the efficient and competitive operation of the electricity market which would enable sustainable and safe electricity supply.
With the distribution operator back under full state ownership after a deal with the Czechs, the Albanian government says it is drafting a new energy law which targets liberalizing 30 percent of the market by lifting regulated prices for businesses linked to the mid-voltage grid.
The Albanian hydro-dependent electricity system is now wholly state run after a deal settling the dispute with Czech giant CEZ group which will be paid back Euro 95 million for 76 percent of the shares it bought in the Albanian electricity distribution operator in 2009 for Euro 102 million.