Outstanding debts between energy companies in Albania have accumulated to a total of around 6 billion lek (approximately 60 million euros). This situation has created a significant bottleneck in the energy sector, which is further detailed in a recent report from the High State Audit, focusing specifically on the OSHEE Group, the Transmission System Operator (OST), and the Albanian Energy Corporation (KESH).
The report highlights that during the verification process of the mutual obligations reflected in the financial statements of OSHEE, KESH, and OST, it was found that the financial statements of OSHEE and KESH had not been approved by their Supervisory Boards or General Assemblies within the legal deadlines. This delay has complicated the process of consolidating debts between the companies.
The audit also points out that since 2021, the legal representatives of the companies have failed to conduct proper verifications and evaluations of the mutual obligations, which has hindered the settlement of outstanding issues and the implementation of corrective measures. OSHEE and KESH, for the period until November 30, 2024, have a discrepancy amounting to 2.2 billion lek. This problem stems from obligations arising from transitional relations between the companies following their separation and various penalties between them.
Meanwhile, the audit reveals that OST and KESH, for the same period, have a difference of 1.5 billion lek, mostly related to unpaid invoices from OST. These invoices represent penalties for delayed payments for electricity provided to balance energy imbalances, reserve activation, and other services.
The relationship between OSHEE and OST is also problematic, with a difference of 2.3 billion lek, which consists of invoices issued by OST to OSHEE, in compliance with ERE Decision No. 110, dated May 14, 2018. This amount is currently under legal dispute.
Auditors emphasize that the disagreements between the energy system companies regarding their respective debtor accounts hinder the process of consolidating outstanding debts and their compensation/settlement. The consolidation process has been managed through long-term restructuring agreements between the companies, but the audit group found that OSHEE Group, which holds the payment responsibility towards KESH and OST, has not developed a payment plan for the debts owed by its subsidiary companies, including OSSH, FSHU, and FTL. This lack of a structured payment schedule has led to the non-payment of debts in full and on time, violating the agreements OSHEE Group has with KESH and OST.
Furthermore, while payments have been made by OSSH, they have been incomplete and not in line with the obligations OSSH has towards KESH and OST, as the audit report notes. This ongoing issue underscores the need for better management of debt obligations and more efficient resolution of the financial challenges facing Albania’s energy sector.