Israel Electric Corporation (IEC) (TASE: ELEC.B22) wants the Ministry of Finance to double government guarantees for raised capital for the purchase of fuel to NIS 6 billion from NIS 3 billion.
IEC claims two developments have occurred since the original amount was agreed upon: the faster than expected production of natural gas from Yam Tethys's Mari B well; and the cold winter, which increased electricity consumption.
Electricity consumption in January-February 2012 was 25% higher than in the corresponding months of 2011.
The amount of money that IEC now wants to raise will push its debt over the NIS 70 billion threshold.
Speaking at the Israeli Institute Of Energy And Environment conference in Tel Aviv yesterday, IEC chairman Yiftach Ron-Tal said, "If we want to express the cost of fuel in electricity rates, we'd need a 36% rate hike now. A three-year of less than 20% was decided on."
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012