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Home ATTUALITA

The price of energy falls slightly in the free market, in December 31.7 lek / kwh, but again almost three times more expensive

by imkadmin
Shk 3, 2022
in ATTUALITA
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The price of energy falls slightly in the free market, in December 31.7 lek / kwh, but again almost three times more expensive
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The price of energy in December for purchases made by the Provider of Last Chance has resulted in a level of 31.73 ALL / kwh.

Earlier, sources from OSHEE claimed that this level had an expectation to come out between 33-34 lek / kwh but it seems that the final result has been more positive for businesses connected at 35 kilovolts and still supplied by the public company.

Despite this price reduction in December compared to November which holds the record with 38.7 ALL / kwh since 2018 when liberalization started again the final price in the free market is almost three times higher than that in the regulated market.

Currently in the free market are the entities that have a voltage of 110 kv and that have disconnected many years ago, while from 2018 in this market are businesses connected at a voltage of 35 kilovolts.

The next businesses, which are facing higher prices than when they were in the regulated market, are those in medium voltage for which the government decided to postpone liberalization until June in order to protect them at a price more preferential.

After a roundtable with representatives of associations, the government decided that by June the businesses connected to the voltage 20,10,6 kv to be supplied by the Electricity Distribution Operator (OSHEE) at a lower price than that of the free market, but higher anyway than the regulated market.

The model that will work according to OSHEE is the merging of the price at which energy is provided by KESH for this group of businesses together with the price at which the difference in the free market is provided. According to OSHEE representatives, this will give a price of 18-22 ALL / kwh, which is half of the one with which the energy was provided in November.

If prices are to fall, then after June the government will continue negotiations with businesses to proceed with the liberalization and eventual emergence of these businesses in the market.

If the latter do not find suppliers, then the FMF will provide energy for them through a tariff that has been approved by the Energy Regulatory Entity (ERE) and which includes the cost of energy purchased on the market, operating costs for the process, the tariff of distribution as well as a minimum profit margin.

In any case, applying this formula essentially discourages businesses from staying with the public company by trying to find private suppliers.

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