Gas

Implementation indicators

  • Unbundling

    Unbundling

    Two transmission system operators were unbundled and certified in Albania. The Trans Adriatic Pipeline (TAP) has to fulfil the certification conditions before its commercial operational date. Albgaz has not yet fulfilled the conditions in the certification decision. 

     

  • Third Party Access

    Third Party Access

    Albgaz and TAP adopted network codes, which were approved by ERE. ERE transposed the Gas Network Codes in Albania. Third party access to the transmission system is regulated by tariffs adopted in line with an entry/exit methodology.

  • Wholesale market

    Wholesale market

    Albania does not have a natural gas wholesale market. REMIT is not in place.

  • Retail market

    Retail market

    All customers are eligible. Supply and customer protection legislation is developed.

  • Interconnectivity

    Interconnectivity

    Albania may be connected to international gas networks once the TAP becomes operational by the end of 2020. The gas emergency rules are in place..

State of compliance

Albania has been developing natural gas by-laws since the adoption of the Gas Law in 2015. The regulatory framework established so far in Albania is at a much higher level than its infrastructure development progress.

Albgaz, a state-owned company, has been unbundled and certified under the ownership model. However, the certification decision conditions requiring the complete transfer of competences over investment decisions to the ministry exercising control over Albgaz have not been fulfilled for the second year in a row, which seriously affects its independence of the ministry controlling the energy sector. Albgaz acts as a combined operator for both transmission and distribution activities. The compliance officer’s report is regularly forwarded to ERE and the Secretariat. The other certified transmission system operator, TAP, has to fulfil the certification conditions before the commercial
operational date, in November 2020.

The major progress during this reporting period was the adoption of the Albgaz network code for its future transmission system and the adoption of the TAP network code, the latter in line with the exemption decision of ERE and Italian and Greek national authorities. The regulatory authority ERE transposed the Network Codes for gas in Albania.

The gas market rules in Albania have still not been adopted. As envisaged in the market model, these should provide for bilateral trading on the natural gas retail and wholesale markets and day-ahead and balancing markets. Albania has also not accelerated the implementation of the Gas Master Plan during this reporting period. In this situation, TAP could be limited to transit through Albania, without the possibility to supply Albania. By contrast, supply rules and customer protection by-laws are in place. A gas emergency plan was adopted by the Government with the Secretariat’s assistance.