Among the rules determined: the Israel Electric Corporation (IEC) will buy all electricity offered. Contract cancellation or renewal must be with a year's advance notice.
Following a lengthy delay, the rules for the entry of large private manufacturers into the Israeli electricity economy have been agreed. The agreement was reached between the Ministries of Finance, National Infrastructures, and Justice and Anti-trust Authority Director General Dr. David Talmor. Following the agreement, private entrepreneurs will be able to invest hundreds of millions of dollars in the coming years in constructing private power stations.
Following the establishment of rules, which are still formally subject to the approval of the Electricity Authority, an additional tender will be published in the coming weeks for setting up a private power station at Alon Tabor in the north.
The main dispute holding up the agreement concerned a section requiring private manufacturers to sell their electricity exclusively to the Israel Electric Corporation (IEC). It has now been established that private manufacturers are not obliged to sell their electricity solely to the IEC, but can also market it to end consumers.
Published by Israel's Business Arena on July 12, 2000