Electricity Price Cut Expected After Israel Electric Corp. Sells Fiber Optic Stake
Translated & summarized from NEWSru Israel by baba
Israel Electric Corporation will pass on half of the proceeds from selling its stake in the IBC fiber optic project to consumers, potentially lowering electricity tariffs by 0.5% in January 2027. The company will receive about 250 million shekels for its 30% stake, with 125 million shekels designated for tariff reductions. The Electric Power Authority confirmed the tariff adjustment will occur in 2027. "Hevrat Hashmal" has not yet commented on the decision.
The story in 5 lines · by baba
- Israel Electric Corp. will transfer 125 million shekels to consumers, lowering electricity tariffs by 0.5%.
- The tariff reduction is expected in January 2027, following the sale of IEC's IBC stake.
- IEC will receive approximately 250 million shekels for its 30% share in the IBC fiber optic project.
- The Electric Power Authority confirmed consumers are entitled to a share of profits from network usage.
- "Hevrat Hashmal" has not yet officially commented on the decision regarding the funds.
Israel Electric Corporation (IEC), known as "Hevrat Hashmal," is set to transfer approximately 125 million shekels to consumers, representing half of the 250 million shekels it will receive from selling its stake in the IBC fiber optic project. This sum will be factored into the electricity tariff update in January 2027, potentially lowering prices by about 0.5%, according to the Electric Power Authority (EPA). The EPA stated that the right to use the distribution network, granted to IBC for laying fiber optics, belongs partly to consumers, thus entitling them to a share of the profits. The remaining half of the proceeds will stay with IEC to incentivize business development and efficient asset management. "Hevrat Hashmal" has not yet formulated an official position on this matter. IBC was established in 2013 to build a fiber optic network using the national electricity grid infrastructure. IEC initially received a 40% stake in IBC in exchange for network access, without any monetary investment. Due to IBC's prolonged financial difficulties, this investment was written off. Following a reorganization, IEC's stake was reduced to 30%. As of the end of the first half of 2026, IBC owed IEC 115 million shekels. In September, IEC signed a non-binding memorandum to sell its IBC shares to the IBC partnership, owned by Phoenix, Mor, and Noy Fund, for approximately 250 million shekels. IBC has also agreed to fully repay its debt.
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