Albanian power supplier borrows EUR 100 million to cope with energy crisis

In the past three months, state-owned distribution system operator and universal electricity supplier OSHEE took EUR 100 million in loans to solve liquidity issues and import electricity for consumers in Albania. However, it may not be enough.

OSHEE is forced to import electricity at a time when prices are skyrocketing. From January to November, Albania has paid EUR 213 million for electricity imports, while OSHEE’s income came in at EUR 480 million, according to the local media. Import prices, ranging from EUR 220 per MWh to EUR 320 per MWh, are several times higher than last year.

In October, the import bill was EUR 65 million, and in three weeks of November another EUR 65 million. On the other hand, the government has prevented the prices charged to consumers to be increased as part of energy emergency measures.

From January to November, OSHEE spent EUR 213 million on electricity imports, while the company’s income was EUR 480 million

An energy emergency was declared in October due to a strong rally in electricity prices. Prime Minister Edi Rama said at the time that the government would allocate EUR 200 million for OSHEE.

The government earmarked EUR 100 million for a liquidity fund for OSHEE for the period until the end of the year and added it would boost it by another EUR 100 million in 2022, and offer state guarantees.

So far, OSHEE has signed agreements for three loans.

OSHEE has taken loans from the EBRD, and private banks

The European Bank for Reconstruction and Development (EBRD) has provided EUR 70 million to “address liquidity gaps caused by the COVID-19 pandemic.”

The funds may also cover the construction of a modern underground power substation in central Tirana, EBRD said.

The two other loans came from commercial banks in Albania. EUR 10 million was secured by the American Investment Bank, and another EUR 20 million by the OTP Albania Bank.

The purpose of the loans is to finance electricity imports, and the government has given state guarantees for them, local media reported.