Sudden changes in Inappropriate times

Sudden changes in Inappropriate times

May 27, 2020
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Despite living in pandemic times and experiencing various difficulties, the private producers of hydro-energy with priority are faced with sudden developments in the Energy Regulation in Albania. Unfortunately, the small hydro power investors are not finding peace and long-term sustainability. Despite all the negotiations, consultations and the work done with the institutions in the last 5 years, there are other changes which are putting their investments in a pessimistic scenario.

The recent change of the Government decreased the Bonus by 10 % (from 1.3 to 1.2), through an unexpected decision, taken by the Council of Ministers regarding the DCM adopted on 13 May 2020, to amend the DCM No. 687., dated 22.11.2017 “On the approval of the Methodology for determining the annual purchase price of electricity, which will be paid to existing producers with priority”.

In addition, this industry is having some other issues due to the recently imposed tariff from several Municipalities, called “The Environmental Protection and Improvement Fee”, which is illegal, disproportionate and has not been at all consulted with the interest groups. This practice is applied by several municipalities in Albania at different levels, and is becoming an issue, due to the no proportional method, the local authorities are imposing to the hydro power investments. This practice has been intensively addressed to the highest Authorities in the country.

FIAA together with AREA have engaged intensively with the Authorities and are working to find solutions involving also the Energy Secretariat in Vienna, aiming to review the DCM and prevent other harmful changes in the law, as well as restore dialogue and trust between the Government and investors in this sector.