3Power Energy Group Inc (PSPW)

[wakl]

TRANSLATION: The difficult hydro situation has forced the Distribution Operator to rapidly open the procedures to start energy imports.

Top Channel has learned that OSHEE has launched the auction to buy over 285 thousand mega energy from imports to meet the country's energy supply for the period 28 June to 31 July.

The hydro reserve in the Drin cascade has dropped to a minimum. According to the electricity company's data, at the end of April, the water level at Lake Fierza was 16 meters lower than the year, while the situation deteriorated over the coming months.

With the amount proclaimed to buy, OSHEE aims to meet 53 percent of consumption, while the remaining 47 percent will be covered by domestic production.

Mandatory energy imports are a small shock to the Distribution Operator balance and the entire energy system this year.

Preliminary accounts show that with current energy prices on the stock exchange, OSHEE will have to spend around 18m euros only on imports of July.

But imports do not only affect the financial side of the company, but also the energy system indicators. OSHEE sources say that due to imports, the company will be forced to cut investment.

This has direct consequences on system indicators as it makes it difficult to reduce losses, which this year probably will not be reduced according to the plan.