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Energy crisis, report: In Albania, consumption was reduced by families, not institutions

2023-12-22 13:56:58Biznes SHKRUAR NGA REDAKSIA VOX

Energy crisis, report: In Albania, consumption was reduced by families, not

The energy crisis that started in 2021 and reached its peak in 2022 put countries under pressure to take mandatory or awareness measures in order to reduce consumption.

The provision of energy that at some moments became critical and unaffordable prompted different reactions.

A recent report of the Secretariat of the Energy Community assesses the effect of these measures by analyzing the data for each contracting party, of which Albania is a member.

Specifically, the first measure that the report cites is the mandatory one for public institutions, which were asked to reduce consumption by 15 percent compared to the previous year, and administrators who did not reach this target were fined.

"Albania imposed an obligation on public institutions to reduce electricity consumption by 15% compared to the same month last year. The 2022 order of the Minister of Infrastructure and Energy "On the appointment of the energy administrator for taking special measures during the state of emergency in the electricity supply", established the obligation for the appointed energy managers to report on the progress and imposed fines for not achieving the objectives" the report states.

According to the Secretariat, the countries that reduced consumption the most were North Macedonia and Montenegro, while Kosovo and Albania followed them.

"North Macedonian consumers reduced their electricity consumption by -9%, exposing themselves to large electricity imports and high electricity wholesale market prices.

A more significant decrease was also observed in Montenegro due to the closure of the aluminum plant (-9%) and in Kosovo* (-5%), which faced affordability problems and was also exposed to high wholesale prices. "Albanian consumers under energy emergency measures saved about 4% of electricity compared to a year ago, while savings in other Contracting Parties were small (-2% or less)," the report cites.

Of course, experts estimate that a significant role in the lower energy consumption in the contracting parties has been given in 2022 by the milder winter.

"In summary, a series of measures to reduce demand were introduced by the Contracting Parties during the years 2022-2023, as a response to the energy crisis. Their character (mandatory, voluntary or combined) and the prioritization of the energy source (electricity, gas, central heating) or end-use sector differed between the contracting parties. At this point, it was still too early to report on the direct impact of the demand reduction measures from most parties (except Albania and Moldova).

However, the overall decrease in gas and electricity consumption may be related to the combination of demand reduction measures combined with mild weather conditions and reduced economic activities in times of crisis," the report states.

In the end, the report underlines that final consumption has not been significantly affected by the increase in prices, especially industry consumption. The overall consumption of industrial consumers has decreased in Montenegro, North Macedonia and Moldova. "Household consumption decreased in Albania, Moldova, North Macedonia and Serbia, and especially where energy-saving measures were introduced in combination with incentives to reduce demand, such as block tariffs and discounts for lower consumption," he admits. report.


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