The Public Utilities Authority (electricity) today announced that in cooperation with government agencies, it was assessing the gas agreements between the partners in the Tamar natural gas reservoir and the electricity producers (Israel Electric Corporation (IEC) (TASE: ELEC.B22) and private electricity producers). The assessment, which is now taking place, includes the supplier's obligation to the producers to provide a regular supply of gas and compensation for failure to supply it.
The Public Utilities Authority (electricity) also announced that it would not recognize "unreasonable" costs of alternative fuel, and that it does not intend to "roll these costs onto the public." Many electricity producers have complained to the Public Utilities Authority (electricity) that the fuel suppliers have raised fuel prices as a result of the shutdown in the reservoir.
Repairing the malfunction discovered during the Rosh Hashanah holiday during maintenance work planned at Tamar will probably be completed only at the end of next week, long after the initially planned date.
It is believed that every day of repairs is costing IEC tens of millions of shekels caused by the use of alternative fuel. IEC's view is that the public is not obligated to bear the surplus cost, and it intends to demand this amount from the Tamar partners.
Initial estimates were that repair would take only 24 hours, later lengthened to 48 hours. Professional sources at Noble Energy, which discovered and operates Tamar, say that the repair will be completed next week. It appears that the Tamar partners prefer to avoid setting a specific date, after having already changed the target date three times.
Published by Globes [online], Israel Business News - www.globes-online.com - on September 25, 2017
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