9.4% electricity price cut set for January 1

IEC Israel Electric Company

Natural gas from the Tamar reservoir makes it possible to produce electricity more cheaply.

The Israel Public Utilities Authority (Electricity) announced yesterday that the electricity rate would be cut by 9.4% on January 1. The flow of natural gas from the Tamar reservoir makes it possible to produce electricity more cheaply. The current rate is NIS 0.64 per kilowatt hour.

As stated in an up-to-date presentation to investors by Israel Electric Corporation (IEC) (TASE: ELEC.B22) (IEC), IEC's fuel expenses have returned to normal as a result of the use of gas from Tamar and a substantial drop in coal prices.

Fuel costs are the main element in the cost of electricity production. The price cut is less, however, than the 10% cut promised by various government ministries.

Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

IEC Israel Electric Company
IEC Israel Electric Company
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