Collective agreement reached on electricity reform

Israel Electric Photo: Shutterstock

The IEC, Histadrut and Ministry of Finance have agreed terms for opening up Israel's electricity sector to private competition.

The Israel Electric Corporation (IEC) (TASE: ELEC.B22), Histadrut (General Federation of Labor in Israel) and Ministry of Finance reached a collective agreement last night setting out details for implementing the reform of the electricity sector, which would end the monopoly of the government owned IEC and permit competition from private electricity producers. Signing such an agreement is meant to avert the need for cabinet and Knesset approval, which could alter or reject it.

In fact the political wrangling has already begun. Jewish Home MK Bezalel Smotrich has sent an urgent letter to Prime Minister Benjamin Netanyahu and Attorney General Avichai Mandelblit demanding that the process be stopped until it has been discussed in cabinet and the Knesset. He claims that the move is unlawful and accuses the IEC, Histadrut and Ministry of Finance of trying to create facts, and prevent the government from doing what is in the public's interests.

Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Israel Electric Photo: Shutterstock
Israel Electric Photo: Shutterstock
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