Albania: Electricity market liberalization

25. January 2017. / SEE Energy News

Albanian Energy Regulatory Authority (ERE) will be fully involved this year in the process of determining costs and tariffs for different voltage levels. Deadlines are defined in the Methodology for determining the price of electricity for end-consumers supplied by a universal supplier (OSHEE).

ERE will consider a proposal for licensing and make necessary changes so that the tariffs  would be approved by December 31, 2017 for all categories of customers, which will enable the liberalization of the market.

Consumers connected to 35 kV and 20 kV network, which is about 6,300 companies, will be supplied from next month on the free market. In addition to the price of electricity, companies will have to pay a fee for transmission and distribution services.

Companies supplied by OSHEE will have to pay following costs: purchase of  electricity and capacity; transmission system usage costs; distribution system usage costs; operating and maintenance costs; depreciation costs; margins and profits; working capital financing costs; and correction of revenues.

Costs related to electricity and capacity will be assigned to the categories of customers based on the load charts, which show usage intervals and seasonal patterns of consumption for each category of customers.

Distribution system usage costs will be determined based on the voltage level at which the service is provided for each category of customers.

Transmission system usage costs will be determined based on the average consumption for each category of customers.

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