Albanian government calls CEZ Distribution to meet contractual obligations.

By bne IntelliNews October 3, 2012
Albanian finance minister Ridvan Bode has called the countrys single energy distribution company CEZ Distribution to fulfill the contractual obligations of its privatisation contract signed in 2009, local TV Top Channel reported. The Albanian authorities and the energy distributor have renewed their harsh debates since CEZ Distribution has ceased energy imports as of September 1, thus forcing the state-owned power utility KESH to compensate for the lower domestic supply. Consequently, the water reserves in the countrys main hydropower dams have dropped to a critical level. Considering that lower domestic power generation could be offset only through higher imports, the government expressed readiness to provide up to USD 50mn guarantees to KESH in order to secure the import. Finally, this would have negative implications on Albanias public debt, which has already approached the statutory limit of 60%. Meanwhile, CEZs Czech parent company said in a press statement, that CEZ Distribution will hire UK law firm SCHINDLERS in order to help resolving the situation in Albania.
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