Albanian Power Corporation (KESH), state-owned power utility, will clear its debts to private hydropower plants within the first half of this year, according to the Ministry of Energy and Industry (MEI), Albanian Telegraphic Agency reported. The remaining total arrears of less than ALL 2 billion (EUR 14.2 million) will be settled by the corporation’s finance sector without seeking bank loans or financing from the state budget, according to the report on Albreporter.info portal.
Increased liquidity and energy sector reforms will address the financial woes of the country’s energy sector, while the power utility is settling the electricity bills within contractual deadlines with the private hydro plants. In 2014, the accumulated debt to privately-owned power utilities totalled over ALL 6.5 billion and the last month’s payments enabled repayment of arrears accumulated until September of 2014.
According to Energy Minister Damian Gjiknuri, the energy system reform is entering a new intensive stage after the adoption of the new law on the energy sector, with increased liquidity and reforms creating more opportunities to address the sector’s financial problems.