Ashkelon power plant. To change hands?
Photo: Amir Cohen
Cabinet to approve Electric Corp. reform
Government slated to okay proposal for privatization of Israel Electric Corp and its division into several subsidiaries
The government is expected to approve Sunday the finance minister and national infrastructure minister's proposal for a reform in the Israel Electric Corp (IEC).
During the last months, the government has held extensive discussions with IEC workers in a bid to formulate a joint draft for the reform.
Finance Minister Abraham Hirchson and National Infrastructure Minister Binyamin Ben Eliezer said that the workers rejected several different government proposals that were brought before them.
However, the ministers stated that the government will continue to negotiate with the employees over the subject of the structural changes' affects on their rights.
In order to pave the way for an approval of the agreement, the ministers suggested that the reform, which was slated to begin in March 2007, will only be launched in 4-6 months.
Independent subsidiaries to produce power
The proposal submitted by Hirchson and Ben Eliezer to the government includes a program for the division and privatization of the IEC at a slower pace than the Finance Minister's original proposal.According to the draft proposal, the company, which will become a holdings firm, will be divided into four separate subsidiaries in January 2008. The subsidiaries will start producing energy in January 2009.
By the end of 2009, a company will be founded for delivering electricity. The company will begin operations by the end of 2010. additionally, 4-5 power distribution companies will be established in 2008.
By January 2010 further subsidiaries will be established and entrusted with designing and erecting power plants, logistics, and fuel acquisition.
Throughout 2010-2013, 49 percent of the companies will be privatized, excluding the power delivery companies. An independent company owned by the state will be put in charge of management, trade and long-term planning of the energy system. This company will begin to operate in 2008.
