Ministry Slams Electric Corp.
Operating Criteria, Misuse of Resources
Zvi Zrahiya and Sharon Kedmi
Published in Haaretz - October
The Israel Electric
Corporation (IEC) operates according to inefficient criteria and does
not properly use all the resources that the state has given it, National
Infrastructures Ministry director general Hezi Kugler said yesterday
during a meeting of the Knesset Economics Committee.
further attacked the IEC, saying that if the company were to adopt the
management tolls that the ministry had offered it, it would save
millions of shekels on fuel purchases.
He also added that the company
must adopt managerial tools that would facilitate the establishment of
new power stations to meet demand over the next five to seven years.
When the natural gas pipelines are completed and there is gas from other
sources, it will be possible for private producers to build additional
power plants using cheap and efficient energy, Kugler explained.
This would raise the level of electricity reserves to 15-20 percent,
which is the state's target, he added.
According to National
Infrastructures Minister Benjamin Ben-Eliezer, "The IEC is a strategic
brand. The company is important to me like the Israel Defense Forces,
and therefore I have no intention of transferring it to private hands.
"The State of Israel is an island state - not like the United States or
Europe, which have the ability to take electricity from their neighbors.
We cannot allow ourselves a situation of electrical blackouts," the
"I have no intention of privatizing the
company, and it will remain under government control - control of 51
percent, and 49 percent will be floated on the stock market," he added.
"We need to understand that the minute we privatize the company, we will
no longer be able to reverse course. It is a process that if we discover
we have made a mistake, we will not be able to correct it." Ben-Eliezer
protested he favors reforms, adding, "the IEC needs to become more