Albanian state-owned power utility KESH sold significant amounts of electricity on the free market after the improvement of the hydrological situation in the country, securing revenues of some 4.7 million euros.
In total, KESH earned 14 million euros from the sales tenders organized in the last few weeks. However, this is almost insignificant if we take into account the costs of imports this year, which exceeded 430 million euros.
The prices at which KESH sold electricity in December followed the HUPX price. As of 10 December, as a result of the significant drop in temperatures in Europe, prices on the exchanges again reached levels of over 550 euros/MWh in peak hours. The price for the base load was around 437 euros/MWh.
In the previous tenders, KESH achieved revenues of 8.85 million euros. The average selling price for the period from 10 to 13 December was 254.7 euros/MWh, with over 11,000 MWh sold in that tender.
A more favorable hydrological situation gave the first positive effects, regarding the energy crisis in the country. In addition to improving the financial situation of KESH, this also refers to the abolition of the announced block tariff of 800 kWh for households, with the Energy Regulatory Agency (ERE) expected to formally approve the abolition.
The block tariff provided for a higher price of electricity for households that consume more than 800 kWh per month. As a measure to encourage savings, it was formally in effect for three months, from October to December, but it was never implemented.
Since the beginning of this year, KESH has been mandated to provide electricity to cover consumption in the country, in emergency situations. This obligation will be valid until the mid-2023.
