New Electricity Price / Press Conference by Prime Minister Edi Rama and Deputy Prime Minister and Minister of Energy and Infrastructure Belinda Balluku

Prime Minister Edi Rama at the beginning of the conference: Good afternoon, everyone! As you can see, we are in an unusual setting for an extraordinary press conference, because today we are sharing with the public an achievement that is one of the most significant of our governance: the first-ever reduction in the price of electricity in the history of these 35 years. This is a fact that certainly fills us with great pride, especially when considering where we started from and the journey we've made to reach this point.

On the other hand, when we take into account that reducing the price of electricity today is completely contrary to the trend in our region and continent, where electricity prices have not only risen generally but are also facing the threat of further increases, this measure is undoubtedly a well-thought-out one. It has been extensively discussed at all levels with both internal and international expertise. It is based on the projections of our strategic plan for full energy sovereignty and our goal to make Albania a net exporter of energy by the end of our fourth mandate. Of course, it also aligns with our government's publicly stated principle of sharing the fruits of painful reforms, of the strenuous efforts made over the years, and of the economic growth we anticipate for 2025, which we project at around 4%-a very significant figure.

Before I hand over the floor to the Deputy Prime Minister and Minister of Energy to talk specifically about the price reduction and the facts and figures supporting the realization of this extraordinary 10-year effort, I want to remind you of some facts-facts that rarely appear on screens and portals, because the media often prefers the spectacle of half-truths and the public dismantling of public figures.

First, thanks to our energy policy and the complex measures we have implemented, including tightening up a completely broken system where half of the population either didn't pay or was stealing electricity, while the other half was paying for both their own and others' consumption, Albania is not only the leader in the region for solar energy production but is also far ahead of the second place.

Today, Albania produces 196 megawatts of electricity from private households and businesses. In second place is Serbia, with only a quarter of Albania's production-51 megawatts-followed by Kosovo, Montenegro, and North Macedonia, which together produce between 14 and 18 megawatts. Three years! Three years of policy during the peak of the challenges posed by the major crisis that impacted the entire energy sector in Europe, including the war in Ukraine.

Secondly, today Albania produces 10% of its energy from solar power. When we entered this phase, the percentage was zero. Now, it's 10%, and we are talking about over 300 megawatts of production, thanks to our policy supporting portfolio diversification in line with Albania's full energy sovereignty and our goal to transform Albania into a net energy exporter within our fourth term. In addition to this production, which is part of our support measures, we now have a total of 500 megawatts. But more importantly, in the investment pipeline based on new applications, we have 1300 megawatts of solar energy-1.3 gigawatts. This means we will reach our goal of having 30% of total energy production come from sources other than hydropower. This includes solar energy as well as 300 megawatts of wind energy projects already in the process.

And in conclusion, why is this important? It is important because, contrary to what many claim-those who speak without fully understanding the issue and mislead public opinion with the theory that we have energy for ourselves and for others-fact is, in good hydrological years, we only cover 75% of our needs. To be very clear, we are not yet fully sovereign in energy. However, today, we are just three years away from complete energy sovereignty because 30% of the total energy volume we need to compensate, along with the recycling of hydroelectric production through new pumping technology, which we are implementing in Albania as an innovative project in partnership with StatKraft for the Devoll project and independently from KESH for Fierza, will ensure our sovereignty. In years with poor hydrological conditions-something we've experienced-we have only 65% of our total production capacity, meaning we are dependent on imports, on market prices, and on the crises affecting others.

However, today, we can proudly tell the Albanian people that, after many years-it certainly takes time-we have succeeded in being able to say: those who consume electricity-about 95% of consumers up to 700 kilowatt-hours-will benefit from a reduction in electricity prices. And remember, in 2019, which I consider the end of the first phase of energy sovereignty, the highest consumption that year reached 21 million kilowatt-hours on New Year's Eve. That night, New Year's Eve of 2019, marked the highest peak in consumption. Today, 22 million kilowatt-hours is considered normal, and during peak periods, we reach 28-29 million kilowatt-hours. The peak is no longer just on New Year's Eve, as it used to be, but we also see peaks during the summer due to the exponential growth of tourism, as well as in December and January. What does this mean? This means something very significant: Albania is a different country. Very simply, Albania is a different country because this growth in energy consumption at such levels signals economic growth, reflects a rise in energy consumption across all sectors, and naturally, this also helps us take this step to lower prices. We have more consumption, which means more revenue.

I truly believe that this moment materializes the efforts of all those who have contributed and continue to contribute in this field, from the leaders to the last electrician in the public energy sector, and to the last meter reader who is part of it; the meters themselves are part of the transformation-so the transformation continues. Soon, next week, together with the Deputy Prime Minister and a delegation, we will be heading to Abu Dhabi for another historic moment-not just for Albania as a country serving its own consumers, but for Albania as an energy player at the European level. You will see this in a few days, but today, we focus on the reduction in electricity prices. I believe that from the presentation the Deputy Prime Minister will make today, we will expose, with concrete facts, all those who, after making life difficult for the Albanian people in the most literal sense, theorize about the energy sector. As you will see, their electricity prices have been higher than the price today.

Q&A

• Prime Minister, what investments does the government plan for the electricity transmission network, given that a high influx of visitors is expected this year?

Prime Minister Edi Rama: I think today is the day to focus on a historical fact, like the reduction in electricity prices. I repeat that, in the 35 years since the form of governance changed in Albania, electricity prices have never been lowered; they've only risen. On the other hand, I want to emphasize that we inherited a sector in a state of disaster, comparable to countries we don't even know where they are. It had nothing to do with Europe, where we live, and where the level of losses due to theft-happening openly in broad daylight, with the electoral blessing of the government, and certainly aided by both ignorance and poor governance-was close to 50%. Meanwhile, of the 51% - 52% of the electricity that wasn't lost due to theft and mismanagement, only 65% of people actually paid, while others took the energy but didn't pay for it.

Today, more than 1 million consumers benefit from the price reduction. The protection and care the government and public sector offer to citizens is 10 times greater. It's like getting an extra pension, a "pension plus" from this price reduction, which is a huge help for pensioners. Let me remind you that this government pays directly, on behalf of pensioners who are heads of households, more than 20 million euros annually for their electricity bills. This amount is transferred to OSHEE, and they say these citizens get a government subsidy on their bills. Now, we are talking about the entire middle class; those who use more than 700 kW are a small group of very wealthy people who will continue to pay the price of 9.5 lek. But bear in mind that, before our government consolidated and set a price, citizens were charged the same rate businesses are charged today, which is 13.5 or 14 lek. To be precise, 13.5 lek is what businesses are charged today, and this same amount used to be charged to citizens and the middle class, who often complain about it without understanding what they are actually referring to.

Today is truly a very meaningful day for me personally as Prime Minister, because it marks the realization of a result that is not the outcome of a single action, but the result of a series of actions and interactions that have brought us to this point.

Naturally, the sector requires further investments and additional transformations. Before we came here, we were discussing with the leaders, and I told them that the plans are very ambitious. When I first mentioned this, back then, those who didn't understand what they were saying kept asking, "What is energy independence? What is energy sovereignty?" Energy sovereignty means that, even if the world turns upside down, Albania will have its own energy every day of the year, with or without water, with or without rain, to meet all its needs. This is energy sovereignty.

• Many may see the reduction in electricity prices as an electoral tactic, especially since we are approaching elections. Do you have a response for those who might raise doubts about the purpose of this decision, considering that if it were made after January 11, it could be seen as part of prohibited activities, given that a large group of citizens benefits from it?

Prime Minister Edi Rama: What matters to me is that over 1 million electricity consumers will pay a reduced price, thanks to a meaningful achievement on a path from the abyss toward the peak of Albania in 2030. That's what matters.

They also claimed that the spring bonus for pensioners is electoral. I, as a person, am electoral the moment I step out of my house, so whatever I do, they will say it's electoral. But what matters to me is that pensioners will receive another bonus, and why will they get it? For a very simple reason: because the economy is growing, and we want this growth to be inclusive-meaning everyone should benefit from this growth. That is what matters.

What matters to me is the truth. The truth is that, never, in any circumstance or for any reason, since my first electoral campaign, have I ever thought about using financial tools for electoral purposes, tools that could become a problem for public finances in the medium or long term. And secondly, I have never engaged in actions that are done for the short term and are not meant to last.

The year-end bonus and the spring bonus will remain in place as a result of economic projections and outcomes. The reduction in electricity prices is here to stay. As for January 11, the only thing I associate with that date is Republic Day; I don't see any other significance to January 11. The economy, businesses, and the people will not wait for the elections to end to receive what they deserve. First and foremost, pensioners won't wait for the elections to finish before they receive their "pension plus" from the reduction in electricity prices. They will get it starting in February.

As for what others think afterward, how they think, and how they express themselves-those with backward thinking-this, as I said, is the great celebration of democracy, where both the right and the wrong have space to express their views. I have no concerns about that.

I repeat, today is a day that I am, perhaps, showing it, though not as much as I truly feel, filled with pride and energy from this achievement. If you check the archives, a few months ago, I said that I expected the Ministry of Energy to project a possible price reduction, and there was endless discussion about it. This is not just empty talk. If this were about electoral politics, in the way those who accuse us use the term, we would have been playing electoral games by not doing the necessary energy reforms, by letting people steal just like those who are now accusing us did.

Thank you very much!

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