Privatization agenda for the Albanian Power Corporation (KESH)
Tirana, September 14 (AENews) – Director General of the Albanian Power Corporation (KESH), Fatmir Hoxha, declared recently that he had received a study by Lahmeyer International, a German consulting company, proposing the split up of the corporation into smaller companies to its further privatization.
According to the Lahmeyer study the initial step on-route to the privatization of KESH foresees splitting the Corporation into smaller companies specialized in generation, transmition and distribution of energy. Then later it will be decided if these smaller KESH companies will be partly privatized, given under concession or completely sold.
The Albanian energy system has an installed power production level of 1200 Mega-Watt, sourced mainly from hydropower sources.
The average annual production-quota is estimated at 5 billion kwh, qualifying Albania as the country with the lowest energy production levels in Europe. Currently, annual energy supply is estimated at 7 billion kWh.
Meanwhile, the energy production per capita is ten times lower than that of Rumania, which currently has the lowest level in Europe.
The government has not yet reached an agreement, however, the sale and distribution sectors in the major cities are expected to be among the first in the list of privatizations.
Many experts hope that the private management of these sectors will bring about a decrease in the level of theft currently occurring in the urban zones. Currently, KESH loses about 35% of the total energy it supplies.
KESH customers are estimated at 830,000 with each customer paying an average monthly bill of Lek3,000 (EUR24).

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on Sep 14th, 2005 and filed under Uncategorized.
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