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Although it is no longer being bought abroad, businesses after January 1 are expected to receive energy at market prices, which is referenced in the Hungarian stock market, because the Albanian one is not yet active.
After January 1, businesses will have the opportunity to find private suppliers, where ERRE has listed a total of 26 licensed companies. If they fail to sign a contract with them, then OSHEE gives them the opportunity to get it from them, but at a price that is determined each month by calculating costs.
Currently the price in the free market is 32 lek K / h, three times more expensive than the current one, which according to businesses will make it difficult for them to operate in the market, increasing costs and bringing strange situations in January, where many of them can even close the shutters.
“In the current situation, when the import price has increased a lot, it is understood that this emergency trade policy is unprofitable. Albania has a hydro-electric potential and can increase its domestic production capacity by 33%. With this increase in hydropower production, it could meet domestic energy demands, without being dependent on import prices and the energy crisis.
Domestic and foreign business has been informed since January 2022, that 7538 businesses will become part of the liberalized electricity market. “Albanian and foreign business associations, after being acquainted with these changes, oppose these measures, as this change will bring as a consequence: a significant increase in production costs, distribution costs, storage of goods and products.”, is written at the request of the associations.
According to them, this will lead to an increase in product prices in the domestic market. Rising production costs will lead to lower production, lower imports and exports, resulting in a contraction of the economy, which will be followed by lower employment and lower tax contributions.
Business association requirements:
1. To clarify and guarantee the conditions for a stable, impartial, non-arbitrary, democratic energy market, as there are absolutely no such conditions for the market entry of 7538 entrepreneurial entities, which are currently supplied with energy by the public operator. One cannot enter a market without first knowing the rules of the market. Currently in Albania there is neither a liberalized market nor an energy exchange, which is the crucial condition for the very existence of the electricity market.
2. Do not increase tariffs for energy distribution and transmission. The proposal of OST and OSHEE Sh.a. for the increase of the respective distribution and transmission tariffs is unfounded in the real costs of these two entities. In the current conditions of the energy crisis, the increase of these tariffs is not reflected in proportion to the costs incurred by the transmission and distribution operator. We quote the TSO proposal for tariff increase, which does not justify the economic loss and its costs.
3. Approve the necessary legal changes to facilitate the procedures of self-generation of electricity by small, medium-sized companies or household customers without being limited to the installed power of 500 kw from solar panels, but also including other renewable sources of such as wind or water.
4. We demand that the increase in the price of energy be transparent and reflect only the part of the imported energy tariff.
5. Urgently establish a technical roundtable with the presence of representatives of the Albanian government and the European community.
6. If there is no dialogue for the establishment of the technical roundtable, the business associations that have prepared this statement will take other agreed actions, which will be communicated after December 24.
Business associations:
-Union of Albanian Producers
-Trading Union of Albania
-Confindustria Albania – Association of Italian Industrialists in Albania Proeksport Albania
Foreign Investors Association (FIAA) CCIA-Italian Chamber of Commerce in Albania
-Albanian Tourism Association – ATA
-Albanian Recyclers Association Albanian Renewable Energy Association – AREA
-Flour Processors Association France-Albania Chamber of Commerce.
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