Water utilities weighed down by energy: debt of non-budget customers to OSHEE reaches 21.21 billion lek

The electricity bill remains one of the heaviest burdens for water supply and sewerage companies in Albania. According to the performance report of the Water Regulatory Authority (ERRU), energy accounts for about a quarter of operating and maintenance expenses in the sector.

In 2025, energy costs for water utilities rose by 85.8 million lek, or 3.5% more than in 2024. Most of the increase came from the regional companies of Durrës and Fier. For Durrës, ERRU attributes the rise mainly to larger volumes of water produced and distributed, which required more operating hours at pumping stations.

Half the companies do not cover their costs

The main problem remains financial capacity. Of the 17 companies that operated in 2025, only eight managed to cover their operating and maintenance expenses with billed revenue. The other nine, or 53%, ran a deficit.

This is also reflected in their liabilities to OSHEE, the electricity distribution operator, which according to ERRU have accumulated year after year despite government subsidies. Data from ERE, the Energy Regulatory Authority, show that at the end of June 2026 the debt of non-budget customers, the category that includes water utilities, reached 21.21 billion lek. This figure is 296 million lek higher than at the end of 2025 and about 1.66 billion lek higher than at the end of 2024.

ERRU expects energy to remain a key factor for the sector's finances as long as some companies do not generate enough revenue to fully cover their expenses.