Electricity Deal Saves Albania Millions18 MAR 15
A deal agreed between the country's state-owned power utility, OSHEE, to obtain power directly from the energy producer, KESH, should save Albania millions.
Besar LikmetaBIRN Tirana
Albania's power utility, OSHEE, has scrapped a tender to buy electricity for March 11th to March 20th , after the country's power generator, KESH, offered to supply it directly with 270 MWh of electricity at a reference price.
A source in the Ministry of Energy told BIRN that the direct sale had saved the indebted OSHEE, which often has to be subsidized by the state, more than 2 million euro for the 20-day period alone.
The direct sale of electricity between the two state-owned companies followed a public outcry after the publication of a BIRN report in February.
This highlighted the fact that OSHEE was buying electricity from energy traders at 57 euro per MWh, while KESH was selling electricity to the same traders for as little as 10 euro per MWh.
Following publication of the report, the opposition Democratic Party accused the government and the public energy companies of holding illegal tenders and urged the general prosecutor’s office to launch a probe.
According to the current model, KESH will supply electricity at a regulated price to OSHEE for the power it distributes to consumers. OSHEE has to buy electricity lost in the grid due to theft or technical losses.
The two companies signed an agreement in early March, which spelled out that when KESH had ample supply, OSHEE would seek to procure electricity from it. Albania’s Energy Regulatory Agency, ERE, approved the deal on March 6th .