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Officials alarmed over payment of electricity bills boycott

Tirana, July 18 (AENews) – Tax authority officials announced that several businesses have not been paying their electricity bills under hopes of having them canceled by the new government.

Fatmir Hoxha, CEO of the state power monopoly, KESH, said that paid electricity bills had decreased in the last three months to 82%, from a 90% collection target, out of the total energy distributed for the period.

Collected bills decreased when many Albanians started to believe that the new government would cancel what to many are considered as "high price" electricity tariffs.

Electricity costs in Albania are estimated at ALL6.21 per KHW (5 cents of euro). According to data from INSTAT (Albanian Institute of Statistics), electricity bills account for up to 50% of all monthly expenditures for an estimated 20 % of country’s entire population.

Election winners, a right wing coalition, had based their campaign in lower tax and lower energy price.

In the past the Albanian government has canceled uncollected electricity bills twice. Once in 1994 and then again in 2003, with canceled debts were estimated at some tens of million of euro. At that time the government had no real chances of collecting those old electricity debts. Now, many Albanians believe that government may do it again.

On the other side, the Albanian Power Corporation (KESH) has announced that many World Bank group loans may stop from being disbursement if collections diminishes.

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Posted by on Jul 18 2005. Filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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