Albania: Power utility company KESH under financial burden against the private HPPs4. September 2014. / SEE Energy News
Albanian Government recognizes that debt of Albanian Power Corporation to private hydropower plants in the country poses a serious problem, that figure rose even further to 720 million dollars, which is known as debt to private companies.
Shiny Cani Finance Minister said that this debt amounts to 60 million dollars, a figure that must be paid by the public company. Economic Director of Albania power company KESH says that aggravated the financial situation facing the KESH corporation to huge burdens. KESH Corporation from selling energy to the distribution operator bills monthly total of about 350 million. With this income, can handle corporate operating costs, maintenance costs and the payment of salaries to its employees.
KESH sells its electricity to distribution operator, while the energy from HPP is buying under prices which are 4 times bigger. The financial burden is imposed on KESH who is blocked to realize any increased investment in the energy sector. However, in these conditions, the Albanian energy model clearly failed and is just down the Energy regulator to draft a new law in accordance with the requirements of the market and that will guarantee a higher certainty for economic operators and consumers.
In conditions when not receiving payment for sold electricity over the years, power generation concessionaires are addressing to courts to convert execution orders that the state has the obligation to sell the energy they have. Only during July, the Court of Tirana has issued execution orders against approximately 20 orders against Albanian Power Corporation KESH. This gives law enforcement service to the KESH who is blocked accounts until the settlement of liabilities against these parties. This scenario makes the situation even more delicate AEC, estimated to be a state-owned company mired in debt.
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