Albania to cancel power distribution/supply licences of CEZ unit

On Friday CEZ said its Albanian unit has decided to cut power supply to all Albanian state-owned water utility companies that owe it a total of 38 million euro ($48.7 million).

CEZ Shperndarje has the right to reply in writing within 30 days from receipt of the licence cancellation notice, ERE said in its decision dated November 16 and posted on its website.

Earlier this year severe drought forced Albania, which relies heavily on water resources for power generation, to import expensive electricity. To help Albanian state-owned power corporation KESH avoid bankruptcy, the government in Tirana decided to raise by 91% the price CEZ Shperndarje pays KESH for electricity.

Subsequently, however, ERE decided to lower the price of input power supplied by KESH from 2,830 to 2,200 leks per megawatthour, which cut the year-on-year price increase from 91% to 49%, CEZ said earlier. As another negative factor for its operations CEZ mentioned a decision by the Albanian tax authority to fine it 4.0 billion Albanian leks for outstanding taxes and penalties plus a further 430 million leks for failing to meet the agreed electricity import levels.

(1 euro=139.647 Albanian leks)