IEC labor sanctions may lead to electricity shortages

Delays in maintenance in 2006 caused widespread shortages.

The labor sanctions at Israel Electric Corporation (IEC) (TASE: ELEC.B22) are raising concern of power shortages. Sources inform ''Globes'' that IEC Production Division director Arik Kushnir warned in a letter to IEC deputy CEO Moshe Bachar of serious concern that upgrades at power plants would not be completed on time, which could affect the reliability of the electricity supply to consumers this summer.

Kushnir warned that upgrade work has been halted at production units that generate 2,000 megawatts, including at the Haifa Power Station, the Eshkol Power Station in Ashdod, the Gezer Power Station in Ramle, the Orot Rabin Power Station in Hadera, the Hagit Power Station in Yokne'am, and at Ramat Hovav.

Kushnir said that the labor sanctions meant that IEC was already behind the upgrade schedule, and that the work would now continue into June.

Both the Ministry of National Infrastructures and the Public Utilities Authority (Electricity) have been notified of the delays.

The current conditions at IEC resemble the conditions that resulted in major power shortages in the summer of 2006, after delays in maintenance resulted in now power reserves to meet demand.

Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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