Albania

Drought Forces Albania to Ration Electricity
Reuters, August 12, 2000

Albania's national electricity company has begun cutting power for up to nine hours a day throughout the country following droughts which have halved water reserves, officials said on Friday. Economy and Privatisation Minister Mustafa Muci criticised the state-owned monopoly KESH, which imports up to five million kilowatts of power per day from Bulgaria, Greece and Macedonia. Muci told managers to stabilise the situation or quit. Albania, one of Europe's poorest countries, relies heavily on hydroelectric schemes for its power. "This extraordinary drought has brought water reserves in the Drin cascade to 30 cubic metres per second compared to the average of 70 cubic metres or more per second," Muci told reporters.

Muci said KESH would speed up investment in grid upgrades. "We will do our utmost so Albanian citizens do not have to live in the dark this winter," Muci said, adding talks were being held with Macedonia to increase imports. Experts say the situation is not likely to change until Albania liberalises the electricity market and creates new sources to generate power. About 25 percent of electricity generated in Albania is lost during distribution because of a worn-out network and another 25 percent is not paid for by consumers. The Economy Ministry is considering taking steps to enable the bank accounts of those who evade payment to be frozen. "KESH will turn a corner because this year the World Bank's board of directors will have reviewed the $87 million dollar project it suspended pending agreement with Enel," Muci said. Italy's Enel manages KESH, a condition international financing institutions set for allocating credits.