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Albania

( Last update: June 2006 )

Electricity Market
Sector structure
Upstream State-owned joint-stock company Albanian Power Corporation (KESH) is the vertically integrated monopolist in generation and cross-border exchanges of electricity

Transitory market model (TMM) adopted. ERE has approved Market Rules, Grid Code, All practices for License, or 80 % of secondary legislation for the market of energy.
Networks TSO functionally and legally unbundled (within KESH holding) in November 2004, following Decision of Council of Ministers Nr. 797 dated on December 4, 2003.
Downstream Albanian Power Corporation (KESH) monopolist in distribution and supply.

First eligible customers accredited in 2005 according to law, based on annual consumption of 100 GWh. The law is to be updated in 2006: ERE has the right to decide about the threshold, rules and practices for the process of eligibility.
Gas Market
Sector structure Marginal domestic production entirely used in the energy sector.
Current issues Privatisation of generation and distribution, probably in the beginning of 2007, not decided.

Effective deregulation of electricity market, regulated TPA, cross border trade(CBT) . CBT is part of tariff and price of electricity.

Approval of the methodology for calculation of tariff: prices for tariff customers for 2006 are based on this document.

Reduction of technical and commercial losses in T&D networks.

Implementation of the national energy strategy, for a total of approx. 400 Mln USD investment financed by international donors. Strategy includes: rehabilitation and upgrading of existing HPP and TPP, construction of new hydro and thermal capacity, and expansion of 400kV interconnections with Montenegro ( Tirana - Podgorica), Kosovo and the Interconnection line Bulgaria  Macedonia  Albania  Italy.
National Legislation Law "On Power Sector" Nr. 9072 date 22.05.2003
Sources Albanian Electricity Regulatory Authority