The government has once again postponed the introduction of higher electricity tariffs for those that use more than 800-kilowatt hours (kWh) per month, Deputy Prime Minister and Energy Minister Belinda Balluku has said.
Albanian energy prices are currently heavily subsidised by the state, but due to rising costs, the government suggested those who use 800 kWh 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 to the current cost on the markets.
While the tariff caused some outrage locally, the government insists 800kWh per month is more than enough for a family to consume in one month, insisting on caution when it comes to consumption.
The minister cited three factors that led to the postponement of the decision. The first was, according to her, the decrease in consumption by citizens, the second was the forecasts for rain in the following days, and the third was the reduction in the price of energy in the international markets.
“At the end of October, the figures show that energy consumption is 7% less. We started it from the administration by giving our example, setting a target of 15% less consumption than a year ago. The energy-saving figures for October are significant and allow us not to apply the 800-kilowatt band even for the month of November”, said Balluku.
Meanwhile, the price of one megawatt in international markets has been reduced from €450 to €250. In the statement, Balluku said that the citizens are responding positively to the call for savings and the scheme for installing solar panels for water heating.
Albania produces almost all of its electricity through hydropower plants, and then during the winter, imports the deficit in fossil fuel energy from neighbouring countries.
Before the summer, public lighting, such as street lights, was switched off from 10 pm onwards to curb public spending on energy. The ministry also advised citizens on reducing consumption by washing on lower heat settings and turning lights off.
Additionally, the government has rolled out a project to see some 2,000 families benefit from subsidised prices when installing solar panel water heaters. In addition, proposed changes to the law have been tabled, which could see excess energy generated by them sold back to the state energy company.
Also on Wednesday, Finance Minister Delina Ibrahimaj said the government did not anticipate rising energy costs for consumers.
“The main objective of the 2023 budget is that we will guarantee the supply of electricity, and we will not increase the price of electricity, keeping the weight of maintaining this price within the state budget,” she told parliament.
(Alice Taylor | Exit.al)
Source: euractiv.com
