Albania among the first in Europe for the lowest price of electricity!

In recent years, the price of electricity has increased due to the commitments of the use of renewable energy sold at prices higher than the energy produced from other energy sources.

The price of electricity in different countries varies according to the different conditions of supply and demand, including the geopolitical situation, the national energy mix, the diversification of imports, network costs, environmental protection costs, weather conditions or levels of taxation and excise duties.

Albania is among the few countries that still does not have a diversified energy production, despite the efforts, almost 100% of the electricity is produced by hydroelectric power plants and therefore the supply of electricity depends entirely on rainfall.

In the ranking of energy costs in Europe, Albania ranks sixth for the lowest price, after Ukraine (0.031 € kWh), Russia (0.048 € kWh), Belarus (0.052 € kWh), Serbia (0.065 € kWh) and Macedonia (0.083 € kWh).

The cost of energy exchanged in Albania is on average 8.4 cents per Kwh (11.3 Lek Kwh in the national currency), in other European countries the cost of energy is much higher, in fact Denmark, Germany, Portugal followed by Italy are among the first countries for the highest price of energy (respectively 0.308 € / kWh; 0.275 € / kWh; 0.236 € / kWh; 0.234 € / kWh).

As we have seen in the above prices, the cost of electricity in other European countries is much higher, due both to the renewable source of production and to the other items that make up the final cost of the bill we pay. such as transport, contactor management, VAT and excise duties.

So what dictates the cost of energy is not only its consumption but also the other components which are very often monetarily higher than what we consume in terms of electrical energy.

In Albania, an electricity bill consists solely of three items which are: The value of kWh consumed during the period (monthly), VAT of 20% and the cost of the contactor of 100 lek (0.80 cents), there are no other costs such as transport or additional excise duties.

Unlike in Italy where we can confirm that the share of electricity generally represents 48.4% of the total amount of the bill, transport and management account for 20.1%, system charges 18.4% and taxes 13.1%, if we take the sums 51.5% of the bills we pay are accessory items against 48.4% of electricity actually consumed.