Israel's High Court of Justice has shaken up the entire economy and energy sector by ruling against the natural gas outline agreement and instructing the Knesset to discuss the law again because of the stability clause.
In their ruling, the High Court of Justice judges wrote, "The stability clause has been set without authority and its legality is repealed. This is because it has been passed in contradiction to the basic rules of administrative law in a way that prohibits restricting the considerations of the (Antitrust) Authority."
The stability clause is the most controversial section of the agreement, under which the state promises to make no substantial regulatory changes in the gas industry in the next 10 years, in particular in taxation, exports and ownership of the fields.
The significance of the ruling is that the gas outline agreement will now be delayed by at least two months and may never come into effect at all.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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