POWER LOSS REDUCTION

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The objectives of the Power Loss Reduction Project are: 1) to reduce non-technical electricity losses (mainly due to theft of electricity) thereby reducing uneconomic use of electricity and increasing electricity revenue; and 2) to support institutional reform and strengthening in the power subsector. The project will consist of the following components: an action plan to reduce non-technical power losses, technical assistance and training for the power loss reduction program, and support for institutional reform and strengthening. The action plan includes: transferring the electricity inspectors to the Albanian Electroenergetic Corporation (KESH), increasing their numbers, reorganizing them, improving their equipment and assuring police support if needed; replacing broken or faulty meters in the cities of Tirana, Durres, Elabasan, Shkoder and Vlore, and upgrading meter testing, calibration and repair; improving consumer services management through establishing consumer contracts, creating a better database, carrying out a publicity campaign, and introducing incentive schemes in the distribution entities. KESH will be converted to a joint stock company and establish new accounting and financial systems.