Yiftach Ron-Tal: Under the reform, the free electricity benefit for IEC employees will be abolished, and several projects and power stations will be privatized.
The hoped-for reform at Israel Electric Corporation (IEC) (TASE: ELEC.B22) will be approved next year, and the employees' free electricity benefit will end, IEC chairman Yiftach Ron-Tal today promised the Knesset Economic Affairs Committee. "In 2013, the electricity sector will be reformed," he said, adding that he hoped that this would be last extension of IEC's license.
Ron-Tal said that 40% of electricity production would be privatized. The reform will cost NIS 6 billion, which will be repaid within a few years. Under the reform, the free electricity benefit for IEC employees will be abolished, and several IEC projects and power stations will be privatized, including Project D the coal-fired Rothenberg Power Station in Ashkelon) and the Alon Tavor power station, amounting to 3,000 megawatts. In addition, 2,000 employees will retire, and the salary structure will be revised.
Published by Globes [online], Israel business news - www.globes-online.com - on December 26, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012