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CEZ considers selling Albania distribution company

CEZ is considering selling CEZ Shpërndarje, the Albanese distribution company it acquired in 2008. The subsidiary is weighing on its profits (only business unit to perform badly over its results over the third quarter of 2012) and constant tensions with the government are likely to be solved by an exit from Albania. CEZ has been fighting with Albanian authorities over power imports, as low hydro availability led to soaring electricity imports in 2011 and a doubling of the power import bill, which was passed on CEZ. The Albanian government also blamed CEZ for insufficient investments in the distribution network, while the company complained that tariff increases were systematically much lower than requested. The distribution company suffers from massive power losses (over 35%, due to electricity theft, despite the broad installation of electricity meters in 2011-2012) and of low bill recovery rates. CEZ is thus likely to focus on its nuclear investments in the Czech Republic and to leave Albania.