Annual progress report 2015 albanian contribution – input I september 2014 – may 2015 table of contents
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- Fuel type Quantities (in tonnes)
- TOTAL 172,209
- Table: Bill collection, January – March 2015 (Compared to January – March 2013 and 2014)
- January February March
- Table: Losses, January – March 2015 (compared to January – March 2013 and 2014)
- 15.3 Energy Efficiency and Renewable Energy Sources
- 15.4 Nuclear safety and radiation protection
Key achievements The Law 43/2015 of 30.04.2015 “On Power Sector” was adopted. The draft National Energy Strategy is being prepared and it will be finalised in 2015. Measures are taken to improve security of supply and power transmissions capacities with the Republic of Kosova and FYROM. Electricity prices were restructured and the two-block tariff system was removed, followed by measures to protect vulnerable customers. The Power Sector Financial Recovery Plan was approved and the Special Operational Unit of the Task Force is operational. ERE fulfilled its role as market regulator. Measures were taken to support the construction of Devoll Hidropower. The draft Gas Law is prepared and it will be adopted in the first half of 2015. The draft Law on Energy Efficiency and the draft Law on the Energy Performance in Buildings are prepared. The legislative framework in radiation protection was further elaborated. The draft National Energy Strategy is being prepared by the working group set up under the Order of Minister of Energy and Industry No 29 of 17.01.2014. The new Strategy aims to define the main challenges, goals and actions for the period 2015 – 2030, taking into account the energy demands until 2030, increased requirements for use of renewable energy sources and energy efficiency, introduction of natural gas after 2020 (Trans-Adriatic Pipeline will be operational by 2020), and regional cooperation and the creation of a regional power market. The draft Strategy will be finalised in 2015. 15.1 Security of supply In order to increase the security of supply, the following measures are taken:
The Gas Master Plan of Albania (GMPA) will be financed by the Western Balkans Investment Framework (WBIF) at a total of a 1.1 million Euros. The Terms of Reference for the GMPA were approved the WBIF. GMPA aims to investigate the diversification of energy resources, connection to regional and European gas networks, as well as the establishment of the gas sector and market in Albania. The GMPA is scheduled to be completed in 14 months. The Albanian Government and the Government of the Republic of Azerbaijan signed on 19.12.2014, a Memorandum of Understanding concerning the cooperation for the development of the Gas Master Plan Albania. Under this MoU, a feasibility study will be carried out aiming to scrutinise all the potential options of the GMPA’s. It will identify all the technical and commercial prerequisites for the development of the National Gas Master Plan, including a detailed guide on the infrastructure of natural gas in transport and distribution networks, and the interconnection of the Albanian network with the networks of the adjacent countries (Montenegro, FYROM, Kosovo, Greece) and the associated infrastructure, including but not limited to the underground gas storage, terminals of liquefied natural gas and the production of energy in the Albanian power plants. The Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products, will be approximated as stipulated in the conclusions of the last Oil Forum of the Energy Community held in Belgrade, Serbia, on 30 September 2014. In this respect, the Work Group set up by the Order of Prime Minister No 233 of 2.12.2013 “On establishing an inter-institutional work group for the review of the legal and institutional framework on keeping and managing the emergency oil stocks and their by products”, is cooperating with the experts of the Energy Community Secretariat to transpose the abovementioned Directive. The Work Group is analysing the Croatian, Kosovo and Macedonian model of emergency oil stocks. Based on the 2013 average sales by the wholesale trade companies, the Minister of Energy and Industry issued his Orders on the quantities of oil stock reserve (by-products) which the companies are obligated to store in 2015, as follows:
Source: Ministry of Energy and Industry Total crude oil production in 2014 was 1,368,228 tonnes. Total associated gas production in 2014 was 32,067,000 Nm3. 15.2 Energy market The Law No 43/2015 of 30.04.2015 “On Power Sector”, partially approximating the Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, was adopted by the Albanian parliament. As previously reported, the dispute between the Albanian government and CEZ was settled through negotiations. Following the settlement, the following legal acts were adopted:
Concerning the increase of electricity prices to cost-recovery levels, ERE approved its Decision No 148 of 26.12.2014 “On deciding the retail prices of electricity for tariff consummators, for 2015”. The new price structure removed the two-block tariff system, taking into account that the application of this system designed as an energy efficiency measure aiming to discourage use of electricity for heating and to direct the customers to other energy resources, didn’t produce the expected results. The price for household customers starting from 1 January 2015 was set at 9.5 ALL/kWh. For the protection of vulnerable customers, the Council of Ministers approved its Decision No 8 of 14.01.2015 “On the protection of vulnerable groups, due to the removal of the two-block tariff of electricity”. The Decision defines the vulnerable groups that will be supported with 648 ALL (approximately 4.6 Euro) per family per month. For the implementation of this Decision, the Guideline of the Minister of Finance, Minister of Energy and Industry and Minister of Social Welfare and Youth No 1 of 2.02.2015 “On the implementation of the Decision of Council of Ministers No 8 of 14.01.2015 ‘On the protection of vulnerable groups, due to the removal of the two-block tariff of electricity” was issued. Aiming to rehabilitate the power generation and distribution system, the Council of Ministers approved its Decision No 171 of 25.02.2015 “On the approval of the Power Sector Financial Recovery Plan”. The Plan provides a detailed analysis of the financial situation in the power sector. The Financial Recovery Plan aims to close the financial gap that the power sector generates every year, within the next 5 years and transforming the system from an arrears generating sector to a self- sustained and liquid one. The implementation of this Plan will be supported by a loan from International Bank for Reconstruction and Development, worth 112,100,000 Euro. The loan and its terms were ratified by the Albanian Parliament with its Law No 170/2014 of 11.12.2014 “On the Ratification of the Loan Agreement between the Republic of Albania and the International Bank for Reconstruction and Development for the financing of the Albania Power Recovery Project”. The rehabilitation of the electricity sector and the increase of bill collection will continue to be supported by the Task Force for the improvement of bill collection rate and lowering of losses in the power distribution network. To this end, the Council of Ministers approved its Decision No 718 of 30.10.2014 “On some addenda and amendments to Decision of Council of Ministers No 1086 of 14.12.2013 “On the set up of the Task-Force for the improvement of the bill collection rate and lowering of losses in the power distribution network”. The Decision stipulates the set up of the Special Operational Unit of the Task Force. The Unit is operational with 50 employees and reports directly to the Task Force and the Minister of Energy and Industry. The Unit is responsible to check if the consumers are supplied according to legal and technical rules, check power meters and other technical equipment, bill payment, switch off illegal consumers and report to the police and prosecutor’s office any breach of law. Activity of the Task-Force, bill collection rate and level of losses for 2014 are described in detail in the Albanian input to the Sixth Subcommittee on Transport, Energy, Environment and Regional Development, held in Tirana on 19 March 2015. Data on January – March 2015 are presented in the tables below. Table: Bill collection, January – March 2015 (Compared to January – March 2013 and 2014) In billion ALL
Source: Ministry of Energy and Industry Table: Losses, January – March 2015 (compared to January – March 2013 and 2014) In %
Source: Ministry of Energy and Industry Aiming to provide to the Albanian Power Corporation (KESH) S.A. the necessary funding to increase production and maintain security of supply, the Council of Ministers adopted its Decision No 552 of 27.08.2014 “On the approval of the government guarantee issued to Raiffeisen Bank Albania, for the credit contract signed between this Bank and KESH S.A.”, as amended by Decision of Council of Ministers No 685 of 16.10.2014 “On an amendment to Decision of Council of Ministers No 552 of 27.08.2014 “On the approval of the government guarantee issued to Raiffeisen Bank Albania, for the credit contract signed between this Bank and KESH S.A.” providing a government guarantee for a 35 million Euro loan from Raiffeisen Bank Albania to KESH. The Council of Ministers with its Decision No 46 of 21.01.2015 “On the approval of the government guarantee issued to Raiffeisen Bank S.A., Albania, under the existing credit, between this Bank and KESH S.A. for 33,000,000 Euro”, extended the government guarantee until 31.07.2015. For the regulation of the electricity market in Albania, the following legal acts were approved:
Concerning Devoll Hidropower, the following legal acts were adopted:
The draft Gas Law is prepared. The draft Gas law aims to fully approximate the Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC and Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No 1775/2005, and partially approximate the Council Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of natural gas supply. The draft Gas Law is scheduled to be adopted by the Albanian Parliament in the first half of 2015. In the gas sector, the following legal acts were approved:
The administrative capacities in the Albanian Gas Sector will be strengthened due to the implementation of the project “Capacity Building Project for Large Gas Infrastructure Developments in Albania with the Private Sector”. The project is financed with 6.6 million Euro by a grant of the Swiss State Secretariat for Economic Affairs (SECO) and is ready to start to be implemented for a four-year period. The Agreement between Albania and the Swiss Federation on this project was approved in principle by the Council of Ministers with its Decision No 170 of 26.02.2015 and signed on 18.03.2015. The project will assist the Ministry of Energy and Industry with advisory services to enable use of potential opportunities to increase energy security by diversifying energy mix and energy sources; will assist in the increase of institutional capabilities and expertise to implement and enforce environmental, technical and social safeguards alongside the construction of large gas infrastructure developments; will assist to ensure capability through an appropriate institutional and regulatory framework to make the best use of additional public resources generated by large gas infrastructure projects; and will assist to increase negotiating and commercial capacities, as well. The project is expected to assist the Albanian public institutions to address the recommendations of the 2014 TAIEX peer review on legislative framework and administrative capacity in the Albanian gas sector. 15.3 Energy Efficiency and Renewable Energy Sources The draft Law on Energy Efficiency was prepared in 2014 in collaboration with the Energy Community Secretariat, aiming to approximate Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC. The draft Law on Energy Efficiency provides for a national objective of energy efficiency, the Energy Efficiency Action Plan (EEAP) and its monitoring, where the public sector will play the primary role, and lays down the set up of Energy Efficiency Fund, establishment of energy savings companies (ESCO’s), Agency responsible for Energy Efficiency, certification of energy auditors, methodology and measurement principles, etc. The Article 7 Energy efficiency obligation schemes of the Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC, will be further detailed and elaborated in the 2nd National Plan for energy efficiency. The preparation and adoption of the 2nd National Plan for energy efficiency is pending the adoption of the Law on Energy Efficiency. A draft Decision of Council of Ministers is prepared for the implementation of the draft Law on Energy Efficiency setting rules on energy audits and promoting the market for energy services. The draft provides additional institutional and capacity strengthening for setting up the Energy Efficiency Fund and the agency responsible. The draft Law on the Energy Performance in Buildings was prepared in 2014, aiming to fully approximate the Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings, updating the current level of Thermal Energy Conservation in Buildings and providing the legal basis for the establishment of implementing regulations and measures required for storing thermal energy in buildings. Upon the Order of Minister of Energy and Industry No 106/2014 a working group was set up to prepare the amendments to Law No 138/2013 of 2.05.2013 “On Renewable Energy Sources”. 15.4 Nuclear safety and radiation protection In the field of radiation protection, the following legal acts were approved:
CHAPTER 16: TAXATION Key achievements The Ministry of Finance and the General Tax Directorate have continued their work on the approximation of Albanian legislation with EU acquis. The aim of the activities was to improve tax procedures and to reduce administrative costs for the taxpayers. Furthermore, increased administrative cooperation, mutual assistance and the fight against tax fraud and tax evasion as well as corruption may be reported. Starting from January 1, 2015, the Albanian Tax Administration has replaced the existing information system with a new more modern system, which is both more advanced and easier to use.. The new module of electronic filing (e-filing) is a very important integral part of this system.
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