The surprising statistic was in a presentation given this week by the Ministry of Finance's budget division energy coordinator.
Israel Electric Corporation (IEC) (TASE: ELEC.B22) salaries make up only 8.5% of the utilities operational expenses, according to a presentation given this week by the Ministry of Finance's budget division energy coordinator. 8.5% is the salary cost of IEC's 12,500 employees including bonuses, pensions and other exceptional payments. In other words even if many of the perks and benefits of IEC employees were withdrawn, the price of electricity would barely fall.
Some sources in the Ministry of Finance were swift to distance themselves from this statistic claiming it is only based on partial data and that the total salary cost is NIS 4 billion annually or 20% of operational expenses.
Published by Globes [online], Israel business news - www.globes-online.com - on February 7, 2013
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