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ERE Solidifies 2026 Power Prices for Water Utilities: A Deep Dive into the New Tariffs

The Albanian Energy Regulatory Entity (ERE) has formally approved the electricity pricing structure for the nation’s Water Supply and Sewerage companies for 2026. Decision No. 57 marks a critical step in maintaining the financial stability of public utilities while ensuring the continuity of essential water services across the country.

The “Special Status” Shield

Under current regulations, water utilities are treated as high-priority consumers. Even as these entities move toward a liberalized market, they remain under the protection of the Last Resort Supplier (FSHU) to prevent any service interruptions that could arise from market volatility or payment disputes

Cost Breakdown: Stability in the Supply Chain

The 2026 price structure reflects a stabilized procurement strategy from the state power producer, KESH. The bulk of the cost is driven by the energy purchase price, which has been set at 5.70 ALL/kWh.

However, the final price paid by utilities varies significantly based on their connection to the national grid. For those connected to the 35 kV transmission-adjacent levels, the lower distribution fee results in a final tariff of 9.33 ALL/kWh. In contrast, utilities operating on the 20/10/6 kV distribution levels will face a higher tariff of 11.77 ALL/kWh, primarily due to the increased distribution service fee of 3.99 ALL/kWh.

Component (ALL/kWh) 35 kV Level 20/10/6 kV Level
Purchase Price (KESH) 5.70 5.70
Transmission Fee 0.85 0.85
Distribution Fee 1.55 3.99
Admin & Risk 1.23 1.23
Total Sale Price 9.33 11.77

Regulatory Oversight

The ERE Board, led by Chairman Petrit Ahmeti, emphasized that these rates are subject to revision should any of the underlying cost components such as transmission or distribution fees undergo changes during the fiscal year. This decision comes into effect immediately, providing a clear fiscal roadmap for the water sector’s energy expenditures for the upcoming year.

For the broader Albanian energy market, this decision reinforces the government’s strategy of balancing market liberalization with the protection of vital public infrastructure.