The approval of the Albanian Market Model (AMM) is an important step towards the consolidation and steady development of the Albanian Electricity Market. This approval is part of the reform that the Government of Albania (GoA) has undertaken for the reconstruction of the Electric Power sector, pursuant to the Law on the Power Sector and the policies of the Government for the development of this sector. Moreover, the AMM has been developed according to the EU Directives on Electricity and the requirements of Energy Community Treaty of South Eastern Europe for the creation of the Regional Market of Electrical Power, as ratified by the Parliament of Albanian in 2006.
During the process of the technical implementation of the previous structure, named the Transitional Market Model, evidence emerged of the need to revise the model in view of the further development of the reform of the Power Sector in Albania. The new structure, the Albanian Market Model, provides for the development, on more consolidated basis, of the electrical power market in full compliance with the European Directives, and is expected to provide a more enduring structure than the previous model.
The Albanian Market Model takes into consideration:
•the steps that the Government is taking in the process of moving from the vertical integrated structure of the Electricity Sector, towards a structure with legally, functionally and financially separate Generation, Transmission and Distribution entities;
•the political objectives of the Government for starting the process of privatization in the Power Sector;
•the harmonization of the power legislation with that of the EU;
•the development of the electricity market according to clear market rules and grid codes as minimal technical requirements for an efficient operation of the Power System;
•higher consumer benefits in terms of securing supply of electrical power and quality service;
•the establishment of third party access in order to participate in the electricity market and the creation of the conditions for the development of a transparent and non-discriminatory market;
•the liberalization of the electricity market, creating a market structure that increases the interest and number of participants;
•the monitoring of the electricity market by ERE, as an independent institution, with the authority to approve all the secondary necessary legislation for this purpose;
•the rules for carrying out transaction in the markets that are transparent and non-discriminatory, and possible misappropriation of funds;
•the development of a tariff reform in order to protect the consumers and at the same time to increase the efficiency of the power system of Albania; and
•the integration of the Albanian Electricity Market with the Regional Market, and later with the European Electricity Market.
The Albanian Market Model can be updated according to the developments in the Electricity Sector and the commitments that Albania may undertake in the framework of regional cooperation.