Doron Arbeli, chairman of Israel Electric Corporation, said in an interview that he supports competition, but only if it is real and it improves service. He argued that the company has already cut staff and become more efficient, and said it can keep improving faster than rivals. Arbeli said he is not focused only on energy security, but also on consumers’ wallets, adding that the presence of the state utility in generation keeps electricity prices lower for the public.
Arbeli said private producers are afraid of the Electric Corporation and challenged them to compete directly. “If they want real competition, come,” he said. “Let us see who is better, who is less efficient, who is not good. Please, we are waiting.” He also said the company considers both consumer conditions and national energy security, unlike private producers who focus only on profit.
Asked why tariffs should be raised, Arbeli said electricity prices in Israel are among the lowest in the world and that the company is only asking to be paid what the law says it is owed. “We are competing with our hands tied,” he said. He added that the company’s work plans for the coming years are well advanced and that it is investing 7 billion to 8 billion shekels a year in preparing the electricity system for the future, including building power plants. Total investment through 2030 is expected to reach 50 billion shekels.
He said the funding will come from current operations and capital raising in Israel and abroad. The company raised 500 million shekels overseas this year and about 1 billion shekels in Israel. According to Arbeli, investors trust the company’s ability to repay its debt, which is reflected in its rating remaining stable during the war.
In the same interview, Arbeli was also asked about his recommendations as former director of the Israel Tax Authority. He said handling direct and indirect compensation claims consumed much of the authority’s manpower, praised its work, but said it must also deepen tax collection. He warned against additional taxes even if the deficit grows, urged greater certainty to encourage investment, said new taxes suffocate the public and business activity, recommended lowering VAT if possible, and cautioned that frequent new regulation and uncertainty could drive businesses away and make banks unwilling to finance them.
Srugim
