At the last minute, the Committee for the reform of the Israel Electric Corporation (IEC) (TASE: ELEC.B22) and the electricity market, chaired by Government Companies Authority director general Ori Yogev, has asked to hire a leading accountancy firm to audit the financial calculations on which the reform proposal is based.
Sources inform "Globes" that two accountancy firms have been looked at by the Committee - Ernst & Young Israel and BDO - to conduct the audit. Until now the Committee has been assisted by simulations run by the TASC consultancy firm, which was hired by the IEC - a fact that generated criticism in the Ministry of Finance. Moreover, officials in the office of Michal Abadi-Boiangiu.at the Ministry of Finance reached different results to TASC.
The decision to hire consultancy services is the outcome of major opposition in the Ministry of Finance to the expected recommendations of the Yogev Committee. Sources inform "Globes" that Minister of Finance Yair Lapid has refused to approve the recommendations, among other things because it does not relate to lowering electricity prices.
Publication of the Yogev Committee recommendation, which were due to be published last Tuesday, have now been postponed indefinitely.
Published by Globes [online], Israel business news - www.globes-online.com - on March 20, 2014
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