CEO Eli Glickman: Politicians are afraid to raise rates because of the social protest.
Israel Electric Corporation (IEC) (TASE: ELEC.B22) CEO Eli Glickman wants an immediate government directive to raise electricity rates by 30-40%, reports Hebrew daily "Ma'ariv". He made the remark at a special management meeting on Sunday at the Hadera Power Station.
Glickman presented figures about the utility's expenditure on fuel for generating electricity, which would double to NIS 20 billion in 2012 from NIS 14 billion in 2011 and NIS 8.8 billion in 2010.
Fuel - natural gas, coal, diesel, and industrial oil - accounts for 55% of IEC's total costs. Glickman implied that IEC cannot continue to bear these costs and said that politicians were afraid to raise rates because of the social protest.
Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011