Energy, CEZ on the brink of crisis

The company says that they have secured power from import, but it is difficult for them to obtain future payments. The situation for the company remains unclear.

They have started negotiations with the Albanian government for the payment of the mutual debts that the company has with its clients. A good resolution would enable CEZ to provide imported energy on time, with which the company covers network losses. CEZ buys most of the power for consumers from the Albanian Power Corporation (KESH), but after KESH increased the price, CEZ entered in an even deeper financial gap.

Although CEZ is not obliged for the moment to cut power for the public, there is still no light in the end of the tunnel, unless the negotiations with the government will conclude. CEZ is negotiating its loan from EBRD, but it seems difficult to be realized, in the current situation. The mother company in the Czech Republic says that they are ready to inject 60 million USD for their branch in Albania, but this will depend on the way how the government and the Energy Regulation Entity (ERE) will formulate the debt payment. In the last meeting with the ERE, the CEZ request for increasing the energy price was rejected with the argument that CEZ had not fulfilled the investment plan, which would also secure the network losses.

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