Responding to a comment during his social media show “Sy m’Sy,” the government head underlined that the electricity tariffs for consumers were cut not by one Lek, but by 10.5%.

“It is not true that the electricity price has been cut lowered by one lek. It has been reduced by 10.5% and this is a milestone decision, because it is the first time that the electricity tariffs are lowered in Albania since 1990s. I am very proud of this because it’s an atypical price cut at a time when all countries have increased energy prices,” Rama stated.

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Responding to comments on the social media, PM Rama reiterated that government doesn’t control consumer prices in a democratic country.

“According to the international bodies, Albania has recorded lowest inflation and the lowest price increase in the region,” the government head stated.

The Premier also noted the recent decision to lower the electricity price for household consumers across Albania.

“It is not funny at all, since the electricity tariff has been significantly cut by 10.5%. I am very proud of this because it’s an atypical price cut at a time when all countries have increased energy prices,” he noted.

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Responding to a social media comment on the electricity price, the government head said that Albania has cut the household electricity price like no other country in the region.

He said that the electricity prices for household consumers were cut by 10.5% for each kWh consumed.

“The electricity tariffs were reduced like nowhere else around us, thanks to the major investments  in these years,”Rama said.

PM Rama stated that Albania has cheapest electricity prices compared to many other countries in the region and in Europe.

“Electricity rate in Albania is 8.5 lek, significantly down from 22 lek in Greece, 33 lek in Italy, and 40 lek in Germany,” PM Rama said.

Earlier this month, the Energy Regulatory Authority (ERE) approved the government’s proposal to cut electricity prices for household consumers, with new reduced rates expected to enter into force as of February 1, 2025.

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Reacting to the latest government decision to reduce electricity tariff for household consumers, the opposition lawmaker said the move had little or negligible effect on the Albanian citizens, “who face the heaviest fiscal burden in the region.”

“Reducing or even lifting the value added tax on energy would provide direct relief for the household electricity bills,” Tabaku said, adding that minimum electricity price cut by one Lek was of no importance and with no effect on the citizens’ income.

According to her, Albanian households will continue facing the country’s unregulated energy sector.

Opposition MP claimed that the Power Distribution Operator has accumulated debts and overdue bills from public institutions.

She revealed a concrete plan with three measures that, according to her, would help citizens and reshape the energy sector, proposing support for vulnerable categories, diversification of the energy resources and well-management of the sector to avoid clientelism and ineffective investments.

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Balluku underlined that the decision will enter into force on February 1 and a deadline of December 31 is a date set for procedure purposes.

“It is not a one-year measure. The Energy Regulator is obliged by law to announce the electricity price of the coming year as it has already done in the last ten years, keeping the electricity rate at 9.5 lek per kW/h. It is a procedure that ERE has been doing every end of year,” she said.

According to her, a total of 1.70 household consumers all over Albania or 95% of them will benefit from the reduced electricity rate following ERE’s decision.

She also dismissed the opposition claims that the move was made for electoral purposes ahead of the May 11 parliamentary elections in the country. Balluku also said that business is not entitled to benefit.

According to the decision, the new rates will lower the cost by 8.5 lek for every 700 kWh consumed, and 9.5 lek for higher consumption.

The price cut will affect households consuming less than 800 kWh per month.

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According to the ERE’s decision, the new rates will lower the cost by 8.5 lek for every 700 kWh consumed.

Speaking at a joint press conference with the Deputy Prime Minister Belinda Balluku, also Minister of Infrastructure and Energy, the government head highlighted that electricity price is reduced for the first time in history of last 35 years in Albania.

Rama hailed the decision as a milestone achievement, underlining electricity prices tend to pursue an upward trend in the region and in Europe.

“It is worth noting that reduced electricity tariffs are in complete contrast to the region and the continent where we live, where electricity prices have not only surged, but may increase further,” Rama said.

The Premier also said that the move was a well-thought decision, subject to broad discussions at a national and international expertise level.

“The decision is based on the projections of our strategic plan to establish full energy indipendence and turn Albania into a net energy exporter within our fourth term in office. The decision is also part of our government’s principle to share with citizens the outcome of painful reforms and economic growth. We expect economy to grow around 4%, which is a significant figure,” PM Rama added.

Earlier today, ERE decided lower the cost by 8.5 lek for every 700 kWh consumed, and 9.5 lek for consumption above this amount and the new reduced rates are expected to enter into force as of February 1, 2025.

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OSHEE stated that no decision has been made to increase the electricity price rate for bakeries and other business establishments.

According to the power utility, the electricity billing scheme for bakeries has entered into force since April and the scheme was applied after the full approval by the private businesses themselves.

OSHEE clarified that the “peak hour” for electricity recently under discussion is a specific concept set by the Energy Regulatory Authority (ERE) in 2016.

The power distribution operator clarified that a 15% higher price rate is applied  during the peak hour only.

“Peak hour” for electricity is an international concept, referring to the specific periods during the day when the electricity demand is at its highest and these are the hours when a large number of people and businesses are actively using electrical appliances, devices, and machinery. Therefore, the electricity price is higher all over the world.

The operator noted that the electricity price for bakeries hasn’t changed and any increase in bread price is abusive.

According to OSHEE, around 1600-1700 establishments are registered and operate as bakeries all over the country.

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Answering to questions about the project on gasification of the city of Korça that would also help reduce household expenses, the Premier pointed out the government benefits for seniors, underlining that the government provides bill payment assistance for energy.

“The government provides financial support to single pensioners for up to 185 kWh from their electricity bill.  I can’t provide concrete information, but we are considering plans to reduce the electricity price,” Rama said.

According to him, given the sustainable growth of the national economy, it is time for the retired people to benefit.

Rama also said that his government would press ahead with the gasification project and Korça is the first city to have a gas heating system in place.

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However, the bakeries that house also pastries, the electricity price will be 9.5 lek per kw/h, and for bakeries housing also a pastry and cafés the applied rate will be 12 lek per kw/hour.

According to Deputy PM Balluku, the current electricity price is subsidized and ensures fair competition. She announced that the new electricity rates for bakeries that also house pastries and cafes will enter into force starting as of May.

“As many as 2600 bakeries operate throughout the country. Bakeries provide basic food product and the electricity price for bakeries only will remain unchanged at 7.5 lek,” Balluku said.

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In a letter to the Energy Regulatory Body (ERE), the opposition lawmaker claimed that the government decision to increase the electricity rates was abusive and called on the energy watchdog to immediately convene and reverse the decision that would increase electricity price for more than 100,000 households across the country.

“The electricity price increase for the Albanian households is unfounded and politically motivated and is not based on an in-depth analysis, as it already proved to be. The decision made by the government and ERE was abusive. It is now clear that the government decided to postpone the endorsement of the new electricity rate for 100,000 families because of fear,” Tabaku said.

“Given that since ERE has yet to make such a decision that would help 100,000 families, we call for for an urgent ERE meeting to overturn the decision made by the same board a week ago. It is vital that the financial and economic health of Albanian households is primary and more important than anything else,” she added.

The government decided a day ago to postpone indefinitely the increase in the price of electricity for households that consume over 800 kWh per month that was expected to enter into force as of today, on October 1.

The new tariff was supposed to be applied until the end of the year. Consumers will now be charged 9.5 lek per kWh.

Albania depends on hydropower for almost all of the electricity that it produces. In case of intense droughts like the one this year, the country imports more power, which has strained government finances given the unprecedented rise in prices.

Prime Minister Edi Rama said earlier today that hydropower plants cover 75% of consumption when they are working at full capacity.

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