Albanias electricity distributor cuts off supply to debtors.

By bne IntelliNews July 27, 2012
Albanias single electricity distributor, CEZ Distribution, has launched a campaign to cut off illegal connections and disconnect supply to debtors, the company informed in a press statement. CEZ intends to file charges for legal proceedings against debtors who continue not to fulfil their obligations. At the same time, it pledged to guarantee regular electricity supply to clients who pay their bills. Grid losses grew by 41% y/y to 1,150GWh in Q1 2012, accounting for a relatively large share in total electricity distribution, the parent company, Czech power group CEZ said in May. CEZ Distribution posted negative earnings before interest, tax, depreciation and amortisation (EBITDA) from energy distribution and sales in Albania of EUR 75.5mn in the first quarter of 2012. CEZ attributed the negative outcome to a decision of the Albanian energy regulator to raise by 91% the prices of electricity generated by the state-owned power producer (which is a monopoly supplier for the distribution firm). CEZ argued that the price hike has not been reflected in consumer prices, thus pushing the distribution operator into difficult financial situation. Consequently, the regulator decided in late May, to cut the wholesale electricity price for the 2012-2014 period by 22.3%.
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