Albania: Dispute settlement with CEZ important for energy sector reform

, SEE Energy News

Energy Community and European Parliament representatives have estimated that the resolution of dispute between Albania and CEZ is a cornerstone for the implementation of important reforms in the energy sector in Albania.

Years of neglecting the energy sector left the Albanian energy sector in a very bad shape, with an unsustainably high share of electricity not paid for, the State-owned companies in serious financial difficulties, and investor confidence alarmingly low. In this situation, settling the dispute with ČEZ was the only sensible move. Costly arbitration proceedings with an unclear outcome would have created a long period of uncertainty and instability. By preventing the urgently needed deep reforms, they would have taken the whole energy sector hostage and created liabilities far higher than what was settled by yesterday’s agreement

While Albania Receives 2015 Energy Community presidency, Minister of Energy and Industry, Damian Gjiknuri spoke about the priorities of this presidency. Minister said that a top priority will be the implementation of the proposed recommendations with the aim of creating a energy union.

Today, more than ever, contracting parties should understand the importance of using the full potential of the legal framework of the Energy Community in order to reform the energy sector and the creation of a common regulatory area with the European Union, said Gjiknuri.

At the request of the Minister Gjiknuri gas corridor topic was added as a priority for the Energy Community including TAP pipeline project as the leader of this corridor.