During December, 71,278 Albanian households consume more than 800 kilowatt hours (electricity) in the winter month. One in ten families exceeds the threshold of 800 kw and is consequently affected by the recent increase in the price and tariff for electricity consumption. That is the conclusion reached made by Open Data Albania, after due analysis. There are about 829,857 Household Consumers in the country. In different months, their consumption varies and the winter months mark a rise in consumption. Households that spend more are not necessarily richer nor are contigent to expensive consumption. They are mainly families with more family members, caring for the well-being of children or families with two and three generations in the structure living together.

The final price according to the USP  – Universal Service Provider – for the band of households exceeding 800 kwh, not only should increase, but also cover eight additional fees such as that of transmission; distribution, administration; imbalances; depreciation; the cost of working capital and in the end, the profit margin.



Table: Households Consuming above the 800 kwh a month band during October – December, Consumption by Bands
Source: ERE, Current Rates
Comments and Analyses: Open Data Albania



Source: ERE, Current Rates
Comments and Analyses: Open Data Albania

Households spending up to 800 kilowatts of electricity per month will pay a price of 9.5 Lek/kWh. While household consumers who spend more than 800 kilowatts, will pay the price of 42.95 Lek/kWh for every amount of kilowatts above that threashold (calculations based on the USP Proposal, dated September 22).

For the month of October, as much as 49,334 consumers will be affected by the quadruppled price of 42.95 Lek/kwh, whereas during the months of November and December, the number of Household Consumers in the plus 800 kWh band will grow to 71,278 consumers. Overall, throughout the October-December 2022 period, it is expected that households of this period will consume 210 million kilowatts of electricity.

On September 22nd, the Universal Service Provider USP submitted an application to ERE for the increase in the price of electricity for consumption over 800 kWh/month, proposing a Final Price of 42.95 Lek/kWh for households surpassing this band (the government previously declared it was to be 42 Lek/kw). USP has added a number of fees and costs in addition to the base price. In said cost, the USP has included and added a. transmission fees (0.85 Lek/kWh), b. distribution (6.42 Lek/kWh), c. administrative costs (1.21 Lek/kWh), d. amortization (0.01 Lek/kWh), e. imbalances (0.07 Lek/kWh), i. allowed cost of working capital ((0.03 ALL/kWh) and fuel (0.06 ALL/kWh).

As a result of the introdution of the new price, it is expected that Households consuming over 800 kWh, for the October-December 2022 period, will spend 1.92 billion Lek per month or 96% more than in the same period in 2021.



Table: Forecast of the Total Cost of Consumption in Lek based on the USP Proposals for Electricity Supply bands, September 2022
Source: ERE, Current Rates
Comments and Analyses: Open Data Albania



Source: ERE, Current Rates
Comments and Analyses: Open Data Albania

For the October-December period, total electricity consumption of 831,070,793 kWh is predicted for both bands, with a total value of 3.86 billion Lek, if the price of 42 Lek/kWh is applied for household customers who consume more than 800 kWh per month.

The data examined in this Article was retrived from the Energy Regulatory Authority (ERE). For more details regarding the calculations, please refer to the Excel sheet below.

OpenData.al has published before other articles concerning the Electricity sector, on the sale and purchase prices of electricity, energy consumption, prices in the stock market that you can consult here.

Download excel: Households affected by the increase in the price of energy based on the USP Proposed bands, – September 2022
Comments and Analyses: Open Data Albania
Translated by: Rezarta Cushaj