Despite the lack of electricity reserves and the need to bring in private producers, sources inform "Globes" that a dispute between Israel Electric Corporation (IEC) (TASE: ELEC.B22) and the Electricity Authority is delaying the signing of an agreement to supply electricity from the private power plants of the Ofer Holdings Group subsidiary Ofer (Power Stations) Ltd. (OPC) at Mishor Rotem.
IEC demands that all costs for purchasing electricity from the power plants of the OPC, which are meant to be set up in 2012, are recognized ahead of time. However, the Electricity Authority opposes the IEC demand, claiming that it deviates from accepted norms.
Following the dispute, deputy accountant general and Government Procurements Administration director Avi Dor, who heads the inter-ministerial tenders committee, held discussions with the Electricity Authority with the aim of reaching an agreement by July.
In response IEC said, "In November 2008 after discussions on the matter, the board of directors approved the OPC contract pending approval from the Authority for Public Electricity Services to recognizes expense in order to determine tariffs for all payments or damages that the company will incur after signing the contract. As of today the approval has not been received."
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2009
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