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As of January, business in Albania will face a 25% increase in energy cost

By   /   05/01/2015  /   Comments Off on As of January, business in Albania will face a 25% increase in energy cost

IBNA Special Report/For 2015, there will be an increase of the price of power supply, where the most affected sector is agriculture and the least affected one relates to bakeries, where the smallest charges of power supply apply. A detailed and necessary information for businesses that operate in Albania or planning to work in Albania

Tirana, January 5, 2015/Independent Balkan News Agency

As of January 1, 2015, businesses in Albania will pay 9 to 25% more for their power supply bills. The decision was taken by the Power Regulatory Authority.

Power supply prices for businesses are differentiated based on the level of connection and not based on consumption.

There are three prominent levels in terms of connection.

For businesses that are supplied with 35 kV, the price has been unified for any category of business. Thus, starting from January 1, 2015, these businesses will pay 12% more in their power supply bill. The price of power supply has increased from 10,2 Lek/KWh to 11,4 Lek/kWh including VAT.

Businesses that are supplied with 20, 10 or 6 kV have operated with differentiated charges according to the type of business, bus starting from January 1, 2015, these charges have been unified to 13,2 Lek/kWh, with the exception of bakeries, where the charge has remained unchanged at 8,52 lek/kWh.

Prices for this level have seen a rise from 9% to 21%. The highest increase has been seen by the agricultural sector, where the price of power supply has increased from 10,44 Lek/kWh to 13,2 Lek/kWh, or 21% higher compared to 2014.

Meanwhile, businesses which are supplied with 0,4 kV have seen a unification of charges for 2015.

The price of power supply for this level has been set at 16,8 Lek/kWh, increasing from 13% to 25% for different business types.

Agriculture and industry have been affected by a 25% increase of power supply prices.

Meanwhile, bakeries will see a fall of 1% in the price of power supply as of January 2015.

Konfindustria criticizes the increase of the price

Konfindustria says that the increase of power supply prices for industries, is wrong and unacceptable.

The head of Konfindustria, Gjergj Buxhuku said that the price increase decided by the Power Regulatory Authority (PRA), comes at a time when losses in the network are higher than one third of the value of the general production of electricity.

“Under these circumstances, the price increase has even harsher effects for the national economy in the long term”, says Mr. Buxhuku.

According to him, this increase is “the wrong tactic for the financial recovery of public operators in the energy sector”.

Konfindustria also expresses its concern about the lack of technical reasons offered by OSHEE in its demands for the charges applied for the use of lines for qualified customers.

“These charges are three times higher than the level of the countries of the region and have a direct impact in the goal of the government for the liberalization of the energy market by 40% until 2018”, says Buxhuku.

Buxhuku says that PRA was requested to refuse OSHEE’s request for the charges relating to 35 KV power lines.

“The fact that PRA accepted the reasons offered by Konfindustria to overthrow the request of OSHEE for the charges concerning the use of 35 KV power lines, is a perfect example for the above and we hope that they will be taken under consideration for other levels of power lines too”, says Buxhuku.

Konfindustria says that today, Albania has the highest process of power supply in the region.

“This level increases the costs of Albanian goods and services and damages the competitive power of the national economy to attract investments, although this was already damaged by the tax packages applied by the Albanian government”, says Mr. Buxhuku.

Price increase for household consumers too

For household customers, the price was averaged, by lifting the two charges that existed so far, namely, 7.7 ALL (5.5 Eurocent) and 13.5 ALL (10 cent). PRA decided for a single charge of 9.5 ALL (7 Eurocent) per kw, excluding VAT of 20%. /ibna/

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