Energy costs and infrastructure challenges prompt proposal for increased transmission fees
Albania’s Transmission System Operator (OST) has called for a significant rise in the country’s energy transmission tariffs, citing the rising costs of purchasing energy on the open market and the growing need for infrastructure investments. The proposed increase, ranging from 40 to 60 percent, would come into effect between 2025 and 2027.
Currently, the cost of transmitting energy in Albania stands at 0.85 lek per kilowatt-hour (kWh). OST has projected that the tariff could increase to 1.22 lek/kWh in the first proposed scenario, with the second scenario pushing the cost to as much as 1.38 lek/kWh.
OST representatives discussed the tariff increase at a recent board meeting of the Energy Regulatory Entity (ERE), emphasizing the need to cover operating expenses and support future investments. They also pointed to Albania’s current tariff as one of the lowest in the region, with the proposed changes designed to align the country with European and regional averages.
“Albania’s rate is significantly lower than those of its neighbors,” said an OST representative. “The tariff hike would help ensure the necessary investment in infrastructure while maintaining the financial health of the system.”
As energy procurement remains a costly and essential process for the state-run operator, OST noted that energy losses, though not technically related, are increasing due to higher generation and export levels. These factors drive up the need for more efficient transmission.
In addition to the transmission fee increase, OST’s proposal also highlights the ongoing need for balancing services to maintain grid stability as the country continues to expand its energy generation capacity.
The proposed tariff hike is expected to directly affect electricity prices for consumers. However, ERE officials have stated that the proposal will be carefully evaluated before any decision is made.
