Albania’s ERE sets temporary electricity distribution tariffs for 1 May-31 December 2026
Albania’s Energy Regulatory Authority (ERE), in Board Decision No. 103 dated 14 April 2026, has set temporary electricity distribution tariffs by voltage level for the period 1 May 2026 to 31 December 2026. The decision was adopted under Articles 16, 19 and 20(c) of Law No. 43/2015 on the electricity sector, as amended, along with Decision No. 456 of 29 June 2022 on public service obligations, ERE’s internal regulations, and the tariff methodology for the distribution system operator approved by Decision No. 182 of 10 November 2017.
The authority said it reviewed the distribution operator OSSH’s audited financial statements for 2022-2024, as well as technical, economic and financial projections for 2025-2026, together with the 5-year distribution network development plan for 2023-2027, which ERE began reviewing under Decision No. 308 of 21 November 2025. The report also recalls that ERE’s Decision No. 312 of 12 December 2025 kept the previous distribution tariffs in force until 30 April 2026, based on the ongoing review process and the information OSSH was required to submit.
In its assessment, ERE said that the continuity and security of electricity distribution are critical for uninterrupted and quality service, and that the cost of outages is higher than any other cost component in the electricity supply chain. The regulator also concluded that, on the basis of the actual figures reviewed, the current distribution tariffs generate sufficient revenue to cover operating costs and support the continuity of OSSH’s activity. At the same time, the report notes that the company still needs to improve its capital structure, which remains negative and could create medium-term financial risks.
The report provides several key financial observations. Compared with ERE’s ex-ante approval for 2022, actual operating costs were around 4% lower. In 2023, those costs remained broadly stable, rising by 0.9%, while in 2024 they increased by about 7% compared with 2023. ERE also said it reviewed additional information sent by OSSH by email on 9 April 2026, in response to an ERE request dated 3 June 2026, regarding OPEX fluctuations, material and consumption expenses, and rent.
Based on the corrected required revenues and distributed energy volumes, ERE calculated an average tariff of 5.89 lek/kWh for 2026. On that basis, the temporary distribution tariffs were set at 1.55 lek/kWh for customers connected at 35 kV, 3.99 lek/kWh for customers connected at 0.6-20 kV, and 6.42 lek/kWh for customers connected at 0.4 kV. The applicable reactive energy billing price remains 1.92 lek/kVArh, the same rate approved under Decision No. 73/2022.
ERE said that the WACC and other financial parameters were kept at previous levels because updated information was not available, describing this as a temporary solution that may be reviewed later in line with the legislation in force. The regulator also said the difference between corrected required revenues and realized revenues is relatively small and therefore acceptable for the period under review. ERE added that it reserves the right to fully review OPEX and CAPEX based on actual results in future tariff processes.
The Board also instructed OSSH to keep distribution tariffs unchanged until 31 December 2026, to improve the quality and detail of the information submitted for regulatory purposes, to separate costs and revenues by voltage level, and to align financial reporting with regulatory accounting requirements. OSSH was further asked to provide detailed operating and capital costs, explanations for year-on-year fluctuations, updated financial analysis including WACC, audited 2025 financial statements, and a tariff application for the next regulatory period. The decision entered into force immediately; interested parties may request review within 7 calendar days, and appeals may be filed with the Administrative Court of Tirana within 30 calendar days of publication in the Official Gazette.
