Loan Based Reform Policy in the Energy Sector in Albania

Loan Based Reform Policy in the Energy Sector in Albania

Annalise by Dr Lorenc Gordani

Legal Adviser in Albania Energy Market

energy sector in albania reform policy reform policy elements reform policy in the energy policy in the energy sector

The process of strong restructure of the regulatory environment in the energy sector, was materialise with approve of the strategic plan for reforming the energy sector on December 2018. A strategic plan contains elements of reform (PRE), which should be implemented by the Albanian authorities and key entities of the power sector to finalize the sector reform efforts that started several years ago.

The strategic plan and especially the timing of the reform steps are in line with Albania’s international obligations and the steps taken to improve the economic, environmental and social sustainability of the sector. They are designed in such a way as to form the basis for a political based loan (PBL) to be implemented during 2018 to 2020.

The PBL will consist of two periods, implementation and monitoring. The first period is expected to begin in the fourth quarter of 2018 and continue until the third quarter of 2019, while the second period is from the fourth quarter 2019 to the third quarter of 2020.

Most of the reform policy elements are in the first implementation period as they are designed to promote the key elements of reforms that seem feasible in the first year and which are essential to implement before further steps are taken. Implementation is realistic and is based on a condition that has sufficient political will after the implementation of the reform.

Regarding the content of the reform policy elements, they are, according to the design, focusing on the elements of high-level reform that are crucial to a successful restructuring of the sector. These elements of the reform policy will achieve institutional improvements in the system, market-based measures and the implementation of fair and transparent practices throughout the value chain in the electricity system.

The implementation of the reform policy elements for each term constitutes the condition for disbursing the financial element of the PBL. More specifically, the monitoring the elements of the reform policy will include an assessment that determines whether the sector has met the conditions and, therefore, qualifies for disbursement.

Disclaimer: The opinion expressed pertain to the author. While all the effort are made to ensure the accuracy of this publication, it is not intended to provide legal advices as individual situations may differ and should be discussed with an expert. For any specific technical or legal advice on the information provided and related topics, contact us through “lorenc_gordani@albaniaenergy.org”.

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