Electricity regulator cancels price rise

The Public Utilities Authority (Electricity) has decided to forego the third stage electricity price rise that was agreed in 2012. Consequently, electricity rates will not increase in 2014, the Israel Electric Corporation (IEC) (TASE: ELEC.B22) has reported to the Tel Aviv Stock Exchange (TASE).

In March 2012, the Public Utilities Authority (Electricity) decided to raise electricity rates in three stages with consumers absorbing the extra fuel costs following the halt in natural gas sales from Egypt. The prices rises were spread over three years with electricity prices rising 8.9% in March 2012, 5.5% in May 2013 and a further rise this year.

The IEC said, "The Authority has decided that due to the current electricity tariff level the balance of the debt will be repaid to the IEC without needing the third electricity rise. In addition, as part of its decision the Public Utilities Authority (Electricity) has said that subject to the data at the end of the year, the electricity rate is expected to be significantly lowered next year due to the end of collecting the balance of the fuel debt from the fuel supply crisis that hit the company and the electricity grid in 2011-2012."

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2014

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