Energy, CEZ demanding price increase

For several years, energy distribution was one of most financially disorganized structures, where big losses, illegal connections and unpaid bills were compensated by the unstoppable price hike that damages honest citizens, but also by million Dollar state subventions.

Selling the distribution system operator at Czech company CEZ seemed like the move that would end once and for all the problems of energy distribution.

But two years have passed from this privatization, and energy distribution continues to be in a deep financial chaos.

By the end of 2011, general energy losses were 30,38%, 2.3% less than 2008.

Failure to cash bills causes CEZ to collect 53.7 ALL for every 100 ALL of energy thrown into the system, slightly more than the half.

The Regulatory Office declared in the annual report that privatization did not sign a change in managing. Due to this situation, CEZ is asking again favors from the state.

Top-Channel learned that the company wants to take a great loan of 100 million USD from EBRD and IFC, but both banks require strong guarantees.

Confidential sources say for Top-Channel that CEZ is asking this guarantee from the Albanian state, more precisely from the Regulatory Office.

The Czech Company is asking the Regulatory Office to concede some indicators that determine the price of energy, such as the level of losses, inflation and investment recognition.

If the Regulatory Office will give this guarantee, it will automatically open way to new energy price increases.

Although there has been no official decision, what is happening with the distribution sector is that privatization, at least until now, has not ended the problems, but has only camouflaged the ways that are transferring the cost of chaos on honest citizens’ shoulders.

Top Channel