Israel Electric Corporation (IEC) (TASE: ELEC.B22) chairman Yiftach Ron-Tal is determined to abolish the free electricity benefit for the utility's employees, and predicts that electricity rates will begin to fall in three years. He is unafraid of threats by Hizbullah Secretary General Hassan Nasrallah to attack power stations.
"All in all, we're pretty well protected," Ron-Tal said in an interview with "Globes" editor-in-chief Hagai Golan on the Globes TV "Face to Face" program. "I doubt that Nasrallah would be able to significantly damage Israel's electricity grid. That's not our problem; we'll deal with it. We have bigger problems, and it's good that Nasrallah is sitting where he's sitting. He can stay there and talk."
Regarding electricity prices; prices have soared both because of higher consumption, but also because of higher rates. Do you think that this is extraordinary?
Ron-Tal: "Since February 2011, there has been no gas from Egypt… In 2010, IEC spent NIS 10 billion on fuel. In 2012, which will end soon, we'll spend NIS 25 billion. The entire price hike last year and this year has been solely due to the rise in our fuel costs."
What's your forecast for prices?
"I think that it will be possible to end this crisis by the middle of next year, or next summer, when gas will begin arriving from Tamar. Prices will stay stable for the next three years, and then they will begin to come down."
Last month, Ron-Tal promised the Knesset Finance Committee to abolish the free electricity benefit for IEC employees. "I am not retracting a single word of what I said on this matter. Part of the electricity reform will include the regulating of the free electricity benefit and it will disappear. This will be done through a settlement with the workers, and they will not be harmed. At the same time, IEC's image will be improved."
How close are we to this?
"Do I appear to be an unrealistic man to you? This is very realistic."
You have seven children. This summer, at least at my home, I applied a strict regime after my last electricity bill. What about you?
"I can allow myself to operate air conditioners at my home at less than 25 degrees… but the expense was high because this summer was much hotter than previous summers."
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2012
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