Albanian Democratic Party accuses Minister of Energy of €180 million energy scheme

The Democratic Party (DP) has filed a complaint with the Special Anti-Corruption Prosecution Office (SPAK) against Minister of Energy and Deputy Prime Minister Belinda Balluku. They accuse her of abusing energy trading processes over the past two years, causing a €180 million loss to the state.

Why is this important: The move highlights an inconsistency in the DP’s stance toward SPAK. While the party regularly criticizes SPAK as being biased when investigating DP members, it now seeks the same institution’s intervention against its political opponents. This suggests a “SPAK is good when it investigates my rivals, bad when it investigates me” attitude.

Allegations against Minister Balluku: Gazment Bardhi, head of the DP’s parliamentary group, alleges that Minister Balluku orchestrated an abusive scheme involving the buying and selling of electricity.

• Abuse of energy trading: Bardhi claims that energy was sold below market prices and purchased above market rates through four or five intermediary companies, resulting in significant financial damage to the state.
• Violation of legal procedures: He states that energy was traded outside the legally mandated Energy Exchange, despite the establishment of the Albanian Energy Exchange (APEX).

“Minister Balluku is the head of this abusive scheme conducted through intermediary companies, selling energy cheaper than market prices and buying it at higher rates,” Bardhi stated. He emphasized that the DP has submitted all documents to SPAK, which, according to him, prove the theft through energy trading.

Calls for swift investigation: The DP urges SPAK to conduct a rapid, serious, and transparent investigation into the allegations against Minister Balluku and the directors of institutions under her authority.

• Evidence submitted: Bardhi mentioned that DP have provided detailed documentation outlining the minister’s actions and inactions that allegedly allowed the illegal sale of electricity outside the Energy Exchange.
• Specific instances of alleged abuse: He cited examples such as energy purchases between June 24-30, which purportedly caused a €1 million loss in just one week.

“Without Belinda Balluku’s approval, the illegal sale of energy outside the exchange would have been impossible,” Bardhi added.

OSHEE Administrator responds

Enea Karakaçi, the administrator of the OSHEE Group (Electric Energy Distribution Operator), responded to the DP’s accusations during an interview on Top Channel. He dismissed the allegations as false and politically motivated and stated that all energy buying and selling procedures are in full compliance with the law and regulations.

He further explained that:

• Development of the Energy Exchange: The Albanian Energy Exchange is relatively new, having been operational for about two years, and not all energy flows pass through it.
• Role of public companies: Public companies like KESH are the biggest promoters of the exchange, attempting daily to operate through it.
• Limitations of the Exchange: The exchange currently handles mostly short-term purchases, and many operations fail due to the lack of counterparties.

“KESH, to my knowledge, makes daily attempts on the exchange. The exchange is still very new, and most operations fail because there is no counterparty to buy the energy,” Karakaçi noted.

The DP’s stance on SPAK: The Democratic Party’s action exposes an inconsistency in their attitude toward SPAK.

• Criticism when investigated: The DP has previously accused SPAK of serving the Prime Minister’s interests when its own representatives are under investigation. SPAK has currently finished its investigation into the leader of DP who is now awaiting his first hearing for corruption.
• Support when accusing rivals: Now, they seek SPAK’s involvement against political opponents, indicating selective trust in the institution. This is not the first time either. A number of representatives of the ruling Socialists are now being investigated, are under arrest or have been sentenced following denunciations by DP reps.

What’s next:

• SPAK’s role: The Special Anti-Corruption Prosecution Office will review the complaint and decide whether to initiate an investigation.