Albanian households struggled to pay electricity bills on time during the first quarter of 2022, as cost-of-living increases gripped the country.
Over the last five months, the cost of living has increased significantly as inflation rose and the prices of fuel, energy, and food soared. This has pushed many precarious households to the limit with income having to be stretched even further than usual.
According to data from OSHEE, the country’s energy provider, 37% of all households failed to pay their bills on time and thus incurred late payment interest between January and March 2022.
Prime Minister Edi Rama previously pledged that bills would not increase for families, but many have reported seeing totals creeping up over the last few months. Furthermore, the government announced plans to introduce a higher tariff for those they consider use more energy than normal.
Albania currently produces almost 100% of power via hydropower but as it cannot store it, the power is sold to other countries. Then during winter, when demand is high and hydropower production is low, they purchase back fossil energy from abroad and sell it at a higher price to consumers.
The country has been warned repeatedly by foreign stakeholders and experts to diversify its electricity production to include more solar and wind. While there are projects underway, Albania has also announced plans to gasify the country, locking it into fossil fuels at a time the EU is trying to phase them out.
