Power Sector Reforms Lead to Brighter, More Powerful Albania

Agim Hadushaj says things are looking increasingly brighter for himself and his extended family in the Albanian city of Fier.

“Now the electricity comes regularly, and our washing machine and television don’t break down like they did in the past due to power outages,” says Hadushaj, a 66-years-old pensioner.

His daughter-in-law, Anila Hadushaj, is equally happy about the improvements to Albania’s power sector, which suffered years of neglect until recently.

She says a more constant supply of energy is good for doing housework, but more importantly, for her kids to study at night.

“Electricity is very important for kids so that they can do their homework, and it is necessary for washing dishes, for ironing and for cooking for the family,” Anila says.

The energy improvements across the country are due to a combination of new laws obliging payment of power bills, and other reforms, aimed at better investing the consequent boost in revenue.

The World Bank is supporting the reforms, through a Power Recovery Project.

“For the first time in 25 years, we can make investments because of increases in revenue,” notes Adrian Çela, Administrator for Distribution at Albania’s state energy supplier, OSHEE.

Those investments, he says, include upgrading Albania’s power grids with new equipment, and providing of individual electrical cabins in neighborhoods across the country, to increase reliability and improve voltage.

“People have become conscious of the need to pay for electricity, and the growing revenue is returned through investments that ensure better supply and minimize technical and non-technical losses,” says Çela.

At a substation in the Albanian capital, Tirana, Electrical Engineer Bashkim Osmani says recent investments in new feeders-the lines that conduct electricity from the grid-now allow for the electricity to be distributed safely to more of the area’s homes and businesses.

“Equipment is the essential part of my work.  The newer the equipment, the better the supply to consumers,” Osmani says.

430 thousand households will benefit from the overall investment program.

Edmond Bejleri, owner of a plastic doors and windows business in Tirana, says the upgrades to the country’s grid mean more electricity-on a more regular basis-which he needs to run his small enterprise’s cutting machines.   He says such improvements will lead even more people to use and pay for electricity, which will create even more revenue, ultimately bringing down costs to the individual consumer.

“Improving the energy situation is a good thing, because in the long run it results in lower prices for businesses and for households,” he says.

Hajrie Bajrami, a Pensioner with disabilities and homeowner, gets a subsidy to pay her bill, as well as an installment plan to help her eventually repay what she owes the electric company for unpaid bills dating back decades!

“Of course this is a good solution, for myself and for my family. We are happy because we have money left over to deal with other needs, such as food and medicines,” she says.