Israel Electric Corporation (IEC) has reached a temporary arrangement with top Palestinian Authority (PA) officials whereby the PA will transfer NIS 20 million to IEC this morning, in addition to the regular payments being made, in order to prevent cuts in the power supply.
At the same time, intense negotiations will begin between the two sides with a short timetable with the aim of reaching a settlement on the PA's total debt to IEC, which amounts to NIS 1.7 billion.
The pressure brought to bear on the PA in the past few days with selective power cuts in Bethlehem, Jericho and Hebron, and the temporary arrangement now reached, were with the knowledge of Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz. Steinitz thanked MK Ayman Odeh, head of the Arab Joint List in the Knesset, for his involvement in finding the temporary solution.
If the two sides fail to reach an understanding within seven days, IEC will resume actions to prevent the PA's debt from rising.
IEC chairman Yiftah Ron-Tal said, "As I said yesterday evening, we were not happy about taking these harsh steps, and I am glad that the Palestinian side has consented to make an immediate payment on account of the debt and to reach a settlement, once and for all, that will remove the burden that IEC carries on its shoulders."
IEC has meanwhile suspended the power supply restrictions to the PA.
Earlier, the PA filed a petition in the High Court of Justice against the power cuts instigated by IEC, claiming that the latter was abusing its monopolistic power and that its actions would have grave consequences for the diplomatic situations and Israel's foreign relations.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2016
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