IEC presents: profit of 1.7 billion $

The IEC published its financial results for 2020 this evening (Thursday), which show that it ended the year with a profit of about NIS 1.7 billion, compared with NIS 1.81 billion in 2019, ie a decrease of about 6%.
IEC revenues fell by 4%, from NIS 24.6 billion in 2019 to NIS 23.7 billion in 2020. The main decrease was in revenues from the public commercial sector: NIS 5.7 billion in 2020, compared with almost NIS 6.8 billion in 2019. This is against the background of the increase in the amount of electricity purchased from new private producers, including the Alon Tavor power plant that the IEC sold in 2019 as part of the structural change. In industry and agriculture, too, there was a certain decrease in revenue from IEC sales.
Private electricity producers currently sell electricity to the business and public sectors but not yet to private customers. In the domestic sector, revenues actually increased from NIS 9.7 billion in 2019 to NIS 9.9 billion in 2020.
Private producers are getting stronger
In 2020, the IEC supplied 61% of the total energy produced in the economy, while 39% was supplied by the private electricity producers. This is compared to 2019, when the share of the electricity company stood at 66% while the private producers provided only 34%. The figure for 2020 includes the power plant in Ramat Hovav, which was owned by the Israel Electric Corporation and sold in December 2020. This is for a net NIS 4.2 billion, after deducting selling costs. As a result, the company generated a profit of NIS 2.4 billion.
According to the IEC, the production capacity of private electricity producers, including renewable energy, is expected to be 46.4% by the end of 2021, while by the end of 2022 it will already constitute the majority of production in the country - 52.8%.
The IEC has five main areas of activity: electricity generation, transmission, distribution, power supply and system management. The IEC owns and operates 15 power plants with a total installed capacity of 11,615 megawatts (compared to 16 sites and a total installed capacity of 12,752 megawatts in 2019). As part of the implementation of the structural change, the company is reducing its activity in the production segment.
Chairman Yiftach Ron Tal said: "This week, the company received an important stamp for improving its overall position and trust in it, in that its credit rating rose to a local credit rating equivalent to AA +. It is an important recognition, especially in this complex and challenging time of the Corona crisis, that the renewable electricity company is managed in a responsible and very prudent manner, both in the financial field and in the operational-operational field. "