Israel Electric Corp. CEO Eli Glickman said the storms could cost the utility up to NIS 1 billion.
The financial damage caused by last week's storms could cost the Israel Electric Corporation (IEC) (TASE: ELEC.B22) as much as NIS 1 billon. During a visit to the Knesset Economics Committee today IEC CEO Eli Glickman said that the direct and indirect damage caused to the electricity utility cannot yet be assessed but it was clear it would be hundreds of millions of shekels and the final amount could "reach as high as NIS 1 billion."
At this stage investigations into the results of the storm have not yet been completed but there is a high likelihood that the IEC will turn to the Public Utilities Authority (Electricity) to ask for full recognition of the damage. An amount like NIS 1 billion could result in raising electricity tariffs by 5% for one year. The main damage to the IEC was from trees falling during the snow storms, collapsing under the weight of the snow onto the utility's high tension cables.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2013
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