The Public Utility Authority (Electricity) has announced that it intends to raise electricity tariffs in Israel by 19.11%, as previously reported by "Globes". Over the last few days, Public Utility Authority (Electricity) chairman Amnon Shapira hinted that the price might rise by up to 18%. The Authority is allowing the public two weeks to state its position before a final decision is made.

The Authority held an emergency session on Thursday to discuss the warnings from Israeli credit rating agencies of lowering the rating of Israel Electric Corporation (IEC) (TASE: ELEC.B22) bonds following its announcement that it needs immediate financing of NIS 3.5 billion in order to purchase fuel due to disruptions in the flow of gas from Egypt.

The price rise is expected to take effect at the end of the public hearing, in about two weeks. The electricity tariffs will be retroactive from the beginning of 2011.

Two of the five members of the Public Utility Authority (Electricity) plenum did not participate in the session because of the short notice given and as a result of time constraints. The two are Ministry of National Infrastructures representatives Aharon Doron and public representative from the Ministry of National Infrastructure Ophir Buchnick. Consultation by telephone was held with one of the representatives that did not attend the session.

Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2011

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