Erdan to IEC: Raise electricity rates to lower consumption

"Just like you draw up a plan to build electricity production units for development of the electricity infrastructure, draw up an energy efficiency plan that will result in electricity saving, and I'll fight to make it happen in the government, the Public Utility Authority and anywhere else needed," Environmental Protection Minister Gilad Erdan told Israel Electric Corporation executives yesterday during a visit to the coal-powered power station in Ashkelon.

IEC's CEO Amos Laskar responded that the corporation is willing and able to meet the challenge, in coordination with the Ministry of National Infrastructure.

IEC chairman Motti Friedman assured Erdan that the answers he would receive during his visit would be based strictly on the accumulated professional knowledge of the company's experts, who enjoy an international reputation - particularly in the field of green energy.

Friedman went on to provide an explanation on the complicated nature of the Israeli electricity economy, and the importance of studying the matter carefully, including all aspects of the variety of fuels used.

Laskar presented a comparison of the cost of electricity produced in Israel with that in various other countries, demonstrating that consumers pay substantially less than their counterparts in other parts of the world.

Erdan noted in response that low-cost electricity is one contributor to increased consumption, and as a result, demand in Israel rises annually at a rate unheard of in the Western world.

The minister opined that the cost of electricity to consumers should be increased in order, among other things, to reduce consumption and help lower emissions.

Laskar presented a review of the national electricity economy, and Erdan was treated to a description of IEC's operations in areas of environmental protection. Erdan heard from top executives about the necessity of another coal-fueled power station.

Discussing the need to import liquid natural gas, Erdan told IEC executives that while it is the state's duty to arrange for the supply of fuel for general use, the IEC is responsible for maintaining its own fuel supply.