Three-quarters of households to face 30% hike in electricity prices

Power prices for both household and business consumers are set to undergo an increase next year as part of a reform in the country’s electricity sector which causes the state budget around $200 million in losses.
TIRANA, Nov. 26 – The government has unveiled the hike in electricity prices for around three quarters of Albanian households consuming up to 300 kWh will be up to 30 percent. Speaking at a press conference this week, Erjon Bra襬 the head of the parliamentary economy committee representing the ruling Socialist Party-led government, said the unified electricity tariff after the lift of the 300 kWH threshold will not be higher than 10 lek/kWh (Euro 0.07), compared to 7.7 lek/kWh currently.
He accused the opposition Democratic Party and its former leader Sali Berisha of lying when they say that power prices will increase to 12.5 lek/kWh.
“There will not be tariffs higher than 10 lek/kWh. This decision is up to the energy regulator ERE but I believe there is no reason to be higher than this level.
All three state-run energy operators have applied for higher electricity prices with the Albanian energy regulator which is expected to approve a hike for both household and business consumers in 2015.
In its 2015 budget, government says it has allocated 1.6 billion lek (Euro 11.3 million) in compensation to people in need for the expected increase in electricity prices in 2015 but has not announced the new unified rate yet after confirming it will lift the 300 kWh threshold charging lower tariffs.
Power prices for both household and business consumers are set to undergo an unavoidable increase next year as part of a reform in the country’s electricity sector which causes the state budget around $200 million in losses.
The reform would affect around three-quarters of Albanian households with a monthly consumption of 300 kWh. Estimates show that a household with 300 kWh monthly consumption will pay an extra of around 1,000 lek (Euro 7) under the new average tariffs expected at a unified 9.53 lek kWh. An annual report by energy regulator ERE shows the number of Albanian households with a monthly consumption of 300 kWh rose to 76.3 percent in 2013, up 1 percent compared to 2012. Household electricity consumption accounted for 57.6 percent of the total in 2013.
Currently, Albanian households pay electricity bills under a two-tier price level which charges them 7.7 lek/kWh for a consumption of up to 300 kWh a month and 13.5 lek for each kWh they consume above the 300 kWh threshold (VAT excluded). Average tariffs for business consumers vary from 8.5 lek/ kWh to 10 lek kWh based on low or medium voltage power access. Meanwhile, state institutions pay 11.5 to 14 lek kWh.
Power prices during the past decade have increased by 63 percent climbing from an average of 5.71 kWh in 2005 to 9.53 lek kWh currently.