Wholesale Electricity Trading In Albania: A Basic Primer To Electricity And Gas Wholesale Trading
Wholesale electricity trading
Albania has undergone deep reforms to adapt and open its electricity market to competition and to align the legal framework to the EU legislation.
Albania is a member of the Energy Community Treaty.1 The general objective of the Energy Community Treaty is to create a stable regulatory framework in the EU neighbouring countries aligned with the EU energy policies.
The Power Sector Act (Ligji për Sektorin e Energjisë Elektrike) ) defines the fundmental rules with regard to the energy market, including the supervising and licensing competences of the Albanian NRA (Enti Rregullator i Energjisë – ERE ). Secondary legislation such as the Electricity Market Model (Modeli Shqiptar i Tregut) and the Electricity Market Rules (Rregullat e Tregut Shqiptar te Energjise Elektrike -MR), complete the legal framework and rules applicable to market participants.
2.1. General aspects
Pursuant to the Power Sector Act, all companies buying and selling electricity at the wholesale level in Albania must hold a valid licence issued by the ERE in accordance with the provisions of the Energy Act and the Regulation on Procedures for Licensing, Modification and full or partial Transfer and Renewal of the Licences (Rregullorja për proçedurat e liçensimit, ndryshimit, transferimti te plote /te pjeseshem dhe rinovimit te licensave – Licensing Regulation ).
2.2. Conditions for licensing
Generally, the issuance of a licence is linked to numerous technical, organisational and financial criteria.
In addition, the Licensing Regulation stipulates that the market participant should provide proof of registration to the Albanian Commercial Register held by the National Registration Centre (NRC). Branches or representative offices are not considered sufficient to become a market participant, based on the Act on Entrepreneurs and Commercial Companies (Ligji për Tregtarët dhe Shoqëritë Tregtare); ); limited liability companies and joint-stock companies are the primary choice of new market participants. Since there is no limitation with regard to foreign ownership in Albanian companies, all the shares/quotas in the Albanian subsidiary can be fully owned by a foreign entity.
2.3. Timetable and fees for obtaining the licence
The ERE shall notify the applicant whether the application was approved or rejected within 15 days from the submission. The ERE will then adopt the final decision on granting the licence within three months from the approval of the application. The wholesale gas trading licence may be modified, transferred or renewed with...
To continue readingRequest your trial