22 years of negotiations finalized an historic reform at the Electric Corporation

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by Ifi Reporter Category:Government May 17, 2018

History at the Electric Corporation. After 22 years of negotiations, the reform was finalized. However, the details of which have not yet been signed. Only the chapter on workers and the retirement of about 1,800 workers was agreed upon and signed. About 1,000 workers have retired from the electricity company recently. The reform will be brought to the cabinet table and the ministers will be asked to approve it.
During the eight years of the reform, the IEC will sell five old sites to private hands, with a total capacity of about 4,000 megawatts - about half of its production capacity. In addition, the Company will transfer to the State vacant areas in Ashdod and Ashkelon in favor of the construction of advanced power stations with combined gas and steam cycles.
The other stations that will remain in the hands of the IEC will be divided into two government subsidiaries - one of the stations operating on coal, and the other of gas operated power plants.
The cost of the reform was estimated by IEC at NIS 7-8 billion to be financed by the sale of power stations and by the reduction of the electricity rate. Finance Ministry Director-General Shai Babad, who led the negotiations on behalf of the state, said that instead of raising the electricity tariff, the rate will not be lowered for more than eight years.
The reform is supposed to increase competition in the field of electricity generation by selling five of IEC's 10 gas-powered power stations. The stations will be sold over five years. The Company will retain the remaining power stations and the coal-fired power stations and will be allowed to construct two new gas-powered power stations at the Orot Rabin site in Hadera. In addition, the Electricity Management Unit will be removed from the IEC and transferred to a separate government company. Will develop a competition in the field of supply, and structural changes will be made in order to streamline IEC's operations and ensure a significant increase in IEC's investments in the transmission and distribution network in a manner that will ensure the reliability of the electricity supply to all consumers.
As part of the reform, IEC is expected to retire from the IEC and the IEC workforce will be reduced by about 25%. The workers will receive an addition to their pension of NIS 1,250 for the retired employees and NIS 1,700 for the remaining employees. Topic
"There are no winners and losers - this is a good reform for everyone, the IEC, the economy and the workers themselves," said the Finance Minister, "We have adapted the Israeli electricity sector to the challenges facing it in the coming decades."
According to the Minister of Finance, "The benefit of free electricity is not suited to today's public reality, and we demanded that it be canceled as part of the reform." This reform brings the State of Israel an economic and social line with the opening of the competition and its implications,
Energy Minister Yuval Steinitz said that "this is a historic reform that will lead to competition in the electricity sector, to modernize the electricity system and to make the IEC more efficient in a way that will serve the State of Israel and its citizens. We will make the move in a balanced and calculated manner. "
 
Histadrut chairman Avi Nissenkorn said that this was one of the complex reforms he had accompanied. He says that it also includes protection of workers, employee retirement, and the establishment of another government company. He stressed that the reform will eventually lead to lower prices.

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