The Electricity Authority announced Thursday that the excess revenues from the sale of the Eshkol power plant will be channeled to cover the costs of the fighting. This means that the electricity tariff will not fall as initially estimated.
The electricity tariff increased by 8.2 percent at the beginning of the current year, and was reduced by 3.5 percent during the year. According to estimates, the sale of the Eshkol power station was expected to reduce the electricity tariff by about 8%, but now the Authority indicates that in practice the reduction will be smaller (if at all) in order to finance the costs of the war. The excess revenue refers to revenue after reducing all expenses and reimbursements due to the IEC.
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Next week, a re-tender will be issued for the sale of the Eshkol power station, and according to estimates, Dalia is expected to be the only bidder and purchase the plant for NIS 9 billion (the minimum price set).
The Electricity Authority published for a public hearing a proposed decision regarding the designation of the excess revenues from the sale of the Eshkol power plant to cover the war expenses in the electricity sector.
According to the Authority's announcement, "Emergency preparedness in the energy sector in general and in the electricity sector in particular is carried out on an ongoing basis. Therefore, the electricity tariff also includes costs for emergencies. The electricity sector has been preparing for emergencies in recent years in accordance with government decisions designated for the issue and in accordance with the approval of the recommendation for the principles of the Electricity Authority's "Emergency Preparedness for the Electricity Sector" policy from March 6, 3."
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It added that despite the preparations, in times of war, a reality may arise that will incur additional costs, both due to the use of more expensive fuels, and due to maintaining the integrity of the system in order to supply electricity as continuously as possible.
Therefore, the Authority publishes the options for financing excess costs due to the war, if there are indeed heavy costs. The Authority is already determining that to the extent that surplus, one-time revenues are received from the sale of the Eshkol power station, the Authority will designate the use of these revenues first and foremost to cover one-time expenses due to the war.
As soon as the disaster became known on October 7, the Electricity Authority switched to operating in an emergency format, in accordance with the guidelines of the Ministry of Energy and Infrastructure, which serves as the Supreme Authority for Energy and Water in times of emergency, and in accordance with the guidelines of Noga, which serves as the power authority with powers it has in accordance with the Emergency Law.
The Authority works closely and continuously together with the Israel Electric Corporation, Noga, the relevant government ministries, and other business companies in the electricity sector in Israel. This is for the purpose of preparation and ongoing conduct during the emergency period forced upon us, and for the rapid rehabilitation of damaged electrical infrastructures, and for maintaining the development momentum that began as much as possible.
The hearing was published on the Electricity Authority's website today, October 26, 10 and will be available for public comment for two weeks until November 23, 9.
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