Albania: Entering the market for large consumers suspended

, SEE Energy News

After a consultative meeting with representatives of consumers connected to 35 kV network, the Ministry of Energy has accepted the request to postpone their entry into electricity market, announced officials from the Ministry.

Representatives of the Ministry and distribution companies held an informative meeting with companies that are required to participate in the liberalized market.

In accordance with the new Law, OSHEE has identified 73 companies connected to 35 kV network, which should find a supplier and separate from the public supplier.

At this point, the process of installing measurement equipment has been completed and the adoption of necessary legal and regulatory framework is continued.

During discussions, the Ministry of Energy has received requests from the companies to be left more time to prepare for market entry. The deadline for completion of this process is June 30, 2017. The Law envisages the period of two months in which clients have guaranteed supply.

Total 6,300 large consumers connected to 20 kV and 35 kV network will enter the market and pay for the electricity at market prices. Under the new law, they have to purchase electricity through a representative or supplier.

Experts advise companies to conclude the supply contracts for a period of at least one year, until establishing the power exchange, in order to avoid problems due to price fluctuations during the year.

Large consumers will be exposed to the risk of price increase, especially during periods of drought, when the supply is almost entirely dependent on imports. If the KESH company would buy electricity at a price of EUR 120 per MWh, as happened in 2011, it would certainly affect the prices for this category of consumers.

However, even after the market liberalization, distribution operator retains the role of a backup supplier. This means that if the company fails to find a supplier in the free market, it will continue to be supplied by the company OSHEE, but at a higher price.