After years of unpaid dues, the Israel Electric Corporation (IEC) is finally seeing the money come in. According to the company’s 2024 financial reports, net profits soared to approximately NIS 3.36 billion—a jump of NIS 1.1 billion compared to the previous year. A major contributor to this growth was the repayment of long-standing debts by the Jerusalem District Electricity Company and the Palestinian Authority (PA), which had accumulated over more than a decade.
Tax Offsets Help Recover Palestinian Debt
Over the past year, Israel’s Ministry of Finance transferred NIS 842 million to the IEC from tax revenues it collects on behalf of the PA. This substantial repayment significantly reduced the company’s bad debt reserves and bolstered its cash flow.
Another key financial milestone for the company was the June 2024 sale of the Eshkol power station, which brought in NIS 9.17 billion. Following the Israel Electricity Authority’s directive, a portion of those proceeds was used to lower consumer electricity rates, while the remainder helped pay down debts tied to past spikes in coal prices.
Rising Profits Amid Economic Pressures
Despite the improved bottom line, the IEC faced several economic hurdles this past year, including credit rating downgrades by Moody’s and S&P, and rising operational costs due to growing electricity demand.
Nevertheless, the company’s leadership reiterated its commitment to a conservative financial strategy, with plans to reinvest profits into expanding and modernizing Israel’s power grid. The company has earmarked around NIS 50 billion for infrastructure investments through the end of the decade.
Court Ruling May Affect Future PA Payments
In a related development, the Jerusalem District Court on Thursday issued a temporary freeze on NIS 652 million in PA funds. The order came in response to a claim filed by 187 victims of terror and their families, according to Channel 14 News.
The report also noted that the PA had attempted to set up an alternate mechanism to continue payments to convicted terrorists in order to bypass Israeli financial oversight. However, the effort to mask those transfers was unsuccessful.
