The structural change in the Electricity Economy is launched

The boards of directors of the Electricity System’s management company and the new electricity production company convened today for the first time

The boards of directors of the Electricity System’s Management Company and the new Electricity Production Company convened today for the first time. The meeting was attended by Mr. Hezi Kugler, Director General of the Ministry of National Infrastructures, Mr. Udi Nisan, Director of the Government Companies Authority, Mr. Amnon Schapira, Deputy Supervisor on Budgets of the Ministry of Finance, as well as Mr. Haim Fernandez and the new members of the directorate.

The government decided on July 2008 to make a change of direction in its attempts to promote structural change in the electricity economy. It was stated in its decision that designated companies will be established and integrated into the Economy’s management, without diminishing the Economy’s private entrepreneurship

The Electricity System’s Management Company will be in charge of long term forecasting for the Electricity Industry, as well as coordination between production systems and immediate consumption, agreement signing with private electricity producers and management of the electricity trade layout.

The new Production Company will commence without delay with the promotion of planning of some power plants and the creation of at least one power plant, which will be conducted in coordination with the private sector, as an alternative to power plant creation by the Electrical Company. Attention should be paid, in this context, to the fact that - as of January 2009 –the Electricity Law states that the Electrical Company cannot act for the purpose of creating new power plants, including by means of consortiums with the Private Sector, unless it receives an irregular authorization to do so, in advance, from the Ministers of Finance and Infrastructures.

In today’s meeting of the boards of directors, government representatives congratulated the companies, wished them success in carrying out their duty, within the framework of opening of the Electricity Economy to competition, and vowed to assist the companies with anything they need.