Israel Electric Corporation (IEC) (TASE: ELEC.B22) is not suing Egyptian natural gas supplier East Mediterranean Gas Company (EMG) for breach of contract because, "We'll all be retired before we see any money", as IEC chairman Yiftach Ron-Tal told the Knesset Economic Affairs Committee today. He made the remark in response to a question by MK Miri Regev (Likud).
Regev criticized the government for not preparing for disruptions in the delivery of Egyptian gas. She said that the Israeli citizen was paying the price for the government's inaction.
IEC deputy CEO Moshe Bachar told the Economics Committee that EMG was currently delivering 20-30% of the quantities of gas contracted for.
Regev asked Ron-Tal, "How do you enforce the agreement with the Egyptians, and what compensation will you receive?" He replied, "We have to decide whether this is an act of god or not, but we'll both be retired before a court gives anyone a shekel."
Regev responded, "That means that contracts are one thing, and compensation is another, and it is the citizen who will pay."
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2011
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