Albania: CEZ privatization increased debts
13/06/2014

Recent data from the Energy Regulation Entity show that the privatization of the distribution system plunged the energy sector in a deep financial crisis.

In the annual report of 2013, the entity notes that as soon as the company passed to the private operators, their debt increased and by 2009, the debt of consumers to CEZ was around 197 million USD, but by the end of 2013 it reached 713 million USD, or 6% of the Gross Domestic Product. 523 million of this are owed by individual families.

Right after that are businesses, with 101 million USD of debts, while the public enterprises have also created a 88 million USD debt.

Two days ago the government approved a law that stops businesses to take part in tenders of they don’t have paid all energy debts. But the data show that the accumulated debt in the energy sector will require other strong measures.

These are only the known obligations that come from bills that CEZ has not been able to collect. There is another significant part of energy that is lost or stolen in the network.