TIRANA, April 5 – Almost half of Albania’s population lives in energy poverty, recognized as spending more than 10 percent of household income on energy, according to a World Bank report.
The situation reflects the high prices charged on electricity to households in one of Europe’s poorest countries although the country meets the overwhelming majority of up to 80 percent of its needs through domestic hydro electricity generation depending on favourable weather conditions.
The World Bank report singles Albania out as one of the countries where more than 40 percent households spend more than 10 percent of their income on electricity bills.
“In all countries, at least part of their household population is in energy poverty, which is generally recognized as spending more than 10 percent of household income on energy. For example, in the Russian Federation, 29 percent of households spend more than 10 percent of income on energy, while in four other countries more than 40 percent of households spend more than 10 percent of their income on energy — Albania, 46 percent; Republic of Moldova, 52 percent; Serbia, 49 percent; and Tajikistan, 60 percent,” says the report.
The situation is also a result of poorly insulated buildings, lack of central heating systems and electricity massively used for heating and cooling facilities.
The data refer to a 2015 report, unveiling Albania’s energy poverty rate could be much higher considering a late 2015 nationwide campaign that has been collecting hundreds of millions of euros in accumulated unpaid electricity bills by more than 400,000 consumers, lifting the state-run electricity system out of collapse but severely affecting domestic consumption.
Albania’s electricity prices underwent a new hike in January 2015 through a unified rate for household consumers and higher rates for business consumers.
Around three-quarters of Albanian households with a monthly consumption of up to 300 kWh have been facing higher prices following the state-run energy regulator’s decision which lifted the threshold applying lower tariffs and imposed a unified tariff of 9.52 lek (€0.07). Some poor households and pensioners have been offered subsidies for the higher prices.
At €0.0824/kWh (tax included), Albania’s household electricity prices in 2016 were twice lower compared to the EU 28 average of €0.2, but higher compared to several regional countries including Serbia, Kosovo and Bosnia and Herzegovina, according to Eurostat, the statistical office of the European Union.
Earlier Eurostat reports have also confirmed Albania has one of Europe’s lowest consumer prices but suffers the poorest per capita consumption.
The World Bank estimates about 45 percent of Albania’s population lived in poverty in 2016, measured against the regional standardized benchmark of US$5 a day.
