World Bank presses Albania to raise electricity prices

TIRANA, March 16 – The World Bank has reiterated calls for an increase in electricity prices in Albania, but also pushed for a plan to protect the poor.
Jane Armitage, the World Bank’s country director and regional coordinator for South East Europe, encouraged the Albanian government to move quickly toward economic tariffs, while establishing a system to protect poor and vulnerable households, in order to secure the financial viability of Albanian power utility KESH and the prospects for private participation.
Albania increased electricity prices beginning March 1 amidst complaints from many civic groups claiming the price hikes placed too large a burden on the country’s poorest populations.
Albania has been suffering from a continuous lack of power during the last three years dues to poor management of the public power corporation, KESH, lack of payment from consumers and also lack of rain forcing the country’s hydro power plants to reduce production.
Last month, an international tender was launched for the privatization of the distribution arm of KESH.
Eight companies have offered to supply a combined 727 gigawatthours (GWh) of electricity to help Albania meet its energy demands during the second quarter of the year, the state-owned Albanian power utility KESH said on Monday.
The country heavily depends on electricity imports, mainly from the neighboring Balkan countries.