The Albanian Energy Regulatory Body has agreed to enforce the government announcement to increase the cost of electricity for households that use more than 800kwh per month, a decision that could impact up to 72,000 homes.
As a part of energy saving measures announced by the government earlier this month, those who use 800Kwh per month or below will see their bills remain the same with a low, subsidised rate, but for every watt over the limit, the price will quadruple.
The current rate is EUR 0.082 per kwh, rising to EUR 0.3 under the new rates.
While electricity rates have soared around Europe due to the energy crisis, Albania’s have been mainly subsidised, and consumers have not seen much increase. The country relies mainly on locally produced hydropower, but in the winter, it imports fossil energy which has now seen a significant increase in cost on the markets.
The authorities have spent some EUR 300 million on subsidising electricity prices, shielding the population from increases.
“We think the time has come when the budget and ordinary taxes can no longer support these people. He added that every kilowatt above 800 would be paid at the market price,” said Prime Minister Edi Rama when he made the announcement. This will impact people with villas, swimming pools, and decorative lighting.
The government at the time of the announcement said this would impact some 40,000 families, but estimates based on consumption in December show that this could reach 90,000.
For example, a family consuming 900 kwh will pay EUR 121.79 under the new rates, as opposed to EUR 88.24 before, an increase of 38%.
The new rate is due to kick in on 1 October while the government have called on consumers to be cautious with their energy usage, switch off lights and reduce unnecessary consumption.
It will expire on 31 December, and a new decision will be made and enforced.
