Israel’s Electric Corporation's Settlement Deal With Egypt Receives Regulatory Approval
IEC will receive about $100 million within the next year and then $50 million a year for eight years
12:3516.12.19
Israel's Electricity Authority, the regulator responsible for the local electricity market, announced Sunday it has approved a settlement between state-owned Israel Electric Corp. (IEC) and Egypt’s two national gas companies.
Sabotage explosions of the gas pipe, 2011. Photo: Reuters
According to the settlement, the Egyptian Natural Gas Holding Company (EGAS) and the Egyptian General Petroleum Corporation (EGPC) will pay IEC $500 million as compensation for failure to uphold previous agreements, due to a series of sabotage explosions of their gas pipe during the Arab Spring in 2011. IEC will receive about $100 million within the next year and then $50 million a year for an eight-year period.
Sabotage explosions of the gas pipe, 2011. Photo: Reuters
The matter has been in international arbitration since the sabotage, with a 2015 court ruling stating that EGAS and EGPC should pay IEC $1.76 billion. EGAS and EGPC refused to pay, pushing the companies towards long negotiations, resulting in the settlement. IEC’s board approved the settlement in May.
