The KLSH/KESH report carried out 5.8 million euros of inefficient expenses from energy exchange to diets

A recent audit of the High State Control (KLSH) in the Albanian Electricity Corporation (KESH) has concluded that there are over 609 million Lek or 5.8 million Euros of expenses deemed without economy, effectiveness or efficiency.

The main weight in this group is the exchange of energy, where, according to the auditors, it has been established that not receiving a quantity of energy deposited at the time when prices reached the peak in 2022 during the energy crisis has brought a negative effect of 2.77 million euros.

"KESH SHA has exchanged electricity with Company "N" LLC, according to the agreement signed with no. 2350/1 ptot., date 04.05.2021. Until 31.12.2022, the state of the exchange of electricity is presented in the amount of 149442 MẆh given, while in the amount received 132002 MWh, with a difference in the amount of 17440 MWh. For the year 2022, the amount of 2546 MWh was received from Company "N", of which the amount of 2398 MWh was received on 01.04.2022. Within this day, the largest amount of energy in the amount of 2278 MWh was received in the off-peak period, where the price of energy in the stock market is very low.

Based on the available data, KESH JSC for the year 2022, has purchased electricity in the amount of 1,460,437 MWh, with an average price from 209.6 Euro/MẆh to 482.2 Euro/MẆh.

The difference in the amount of 17440 MWh should be taken during this period when the price in the stock market is high. Referring to the HUPX exchange for 2022, for the same profile, the average electricity trading price was 271.6 Euro/MWh.

Referring to the average electricity purchase price and the stock market price for 2022 (for similar profiles), as a result of not receiving the electricity reserved at Company "N" LLC for this year, KESH SHA results in a loss worth 2,774,536 Euro [(271.6 MWh – 115.2 MWh) x 17740 MWh], a value which is considered a financial effect," the report states.

Another point that is considered a violation by KLSH is the treatment of diets for employees where the quota of 300 ALL/meal/working day should have been respected, while 500 ALL/meal/working day remained.

"From the audit of the documentation of the list of payments for the period 01.01.2021 - 31.12.2022, it was found that the diet for food treatment was paid in the amount of 500 allek per meal/working day, while it should have been paid 300 allek/day. From the calculation of the payment list for the period 01.01.2021 - 31.12.2022, it results that this benefit is in the amount of 170,018,888 ALL, from 102,011,333 ALL that should have been, so the amount of 68,007,555 ALL was paid more, which is considered an ineffective expenditure for the company's budget. the report says.

KLSH has also underlined the damage that has come to KESH from the dismissals where some cases have been won in court while there are others that are still ongoing.

"From the audit, it is established that in relation to the court proceedings in which the company is a party, from the documentation made available, it is established that for the audit period, 81 court cases were lost in appeal, of which 3 court cases were lost in the High Courts and in the Courts of Appeal, forcing the institution to pay the amount of 2,375,484 ALL as compensation for illegal termination of employment relations and enforcement expenses.

For the audit period, 7 court cases are in the process of trial in the Court of First Instance of Tirana, in the amount of ALL 1,810,437 as compensation for illegal termination of labor relations and enforcement expenses. In total, the value of ALL 4,185,921, is considered an uneconomical expenditure for the company's budget" underlines KLSH. Monitor