Jerusalem District Electricity Company

Jerusalem District Electricity Company
Part municipally owned, part private
Industry Electricity distribution
Founded 1914 (1914)
Headquarters Jerusalem, Israel
Area served
 East Jerusalem, West Bank
Products distribution
Number of employees
 450 employees
Website www.jdeco.net Edit this on Wikidata

The Jerusalem District Electricity Company (JDECO) is an electricity company established in its current form in 1956 that has the exclusive rights to supply electricity to consumers in the districts of East Jerusalem, Bethlehem, Ramallah and Jericho. The company does not have its own power stations, but buys over 95% of its electricity from Israel Electric Corporation (IEC) and the remainder from Jordanian National Electric Power Company. Jordanian electricity is only used in the Jericho district.[1]

JDECO supplies electricity to 30% of households in the West Bank and East Jerusalem. JDECO supplies electricity in its license area, while IEC sells electricity directly to the PA to distribute in areas not covered by JDECO.[2] JDECO recorded a net loss of about NIS 2.6 million in 2011.[3] In 2012, JDECO owed NIS 458 million to IEC.[2]

History

The Jerusalem District Electricity Company was founded in 1914 by Ottoman authority, before the British Mandate for Palestine.[2] The Company was established in its current form in 1956 under Jordan authority.[3]

JDECO has had a monopoly over supplying electricity in the larger Jerusalem area for nearly 100 years. Its first concession was signed during the British Mandate and has been extended under Jordanian rule. In 1988, Jordan extended the concession for another 60 years, but Israel has only agreed to an extension until 2030.[1] The Israel Electricity Authority has granted JDECO a 20-year license for electricity distribution in East Jerusalem, which currently runs to 2030, and an annually renewable license for the supply of electricity to consumers. JDECO’s activities in East Jerusalem are regulated by the Israel Electricity Authority, and in the West Bank they are regulated by the Palestinian Authority (PA) or, in some cases, by the Israeli Civil Administration.[3]

Organization

JDECO is a joint-stock company. As at 2016, 25% of its shares were owned by the municipalities of Jerusalem, Ramallah, Al-Bireh, Bethlehem, Beit Sahour, Beit Jala and Jericho, while the remaining 75% were owned by over 3,000 private shareholders. The board of directors consists of 18 members: 9 representatives of the municipalities and 9 representatives of the private shareholders.

The company has four area branches, Jerusalem, Ramallah, Bethlehem and Jericho. In 2011, JDECO employed about 450 workers.

Activities

JDECO is responsible for connecting new consumers to the grid, as well as metering and billing. It has exclusive rights within its license areas.

JDECO does not have its own power stations, but purchases over 95% of its electricity from Israel Electric Corporation (IEC) and the remainder from Jordanian National Electric Power Company. Jordanian electricity is permitted to be used only in the Jericho district.[1]

In 2011, all of the electricity distributed by the company in East Jerusalem was purchased from IEC. JDECO‘s activities in the Jerusalem area constitute about 1/3 of the company’s total economic activity.

Debt to IEC

Most of the electricity sold by JDECO is supplied by IEC. However, by 2012, JDECO’s debt to IEC was NIS 458 million,[2] and growing. By February 2015, IEC was owed NIS 1.9 billion,[4] most of which was owed by the Palestinian Authority and JDECO.[5]

On 23 February 2015, IEC intentionally cut off electricity to the West Bank for about 45 minutes due to unpaid debts.[6] Two days later it again cut off electricity, stating it was a warning to the Palestinian Authority to begin paying down the debt. IEC stated that it is losing NIS 85 million per month on power supplied to Nablus and Jenin that is not being paid for, causing the majority of IEC’s quarterly loss.[7] The Palestinians accused IEC of collective punishment;[8] while IEC stated that it must operate independently and is treating this as it would any customer who does not pay its debts.[9]

In March 2016, the debts were NIS 1.7 billion; and on 31 March, IEC again cut power, this time to the Jericho area.[10] On 4 April, IEC cut power in the Bethlehem area,[11] and the following day it cut power in the Hebron area.[12] On 6 April, IEC restored full power to the West Bank after it received a payment of NIS 20 million, and an agreement to receive a full debt repayment schedule within seven days.[13]

See also

References

  1. 1 2 3 Jerusalem electricity company crippled by Israel, Palestinian Authority
  2. 1 2 3 4 Israel Renews Palestinian Power Supplier's License, Despite Debt. Itai Trilnick, Haaretz, 7 January 2013 (premium)
  3. 1 2 3 Appendix B, Jerusalem District Electricity Co. Ltd ("JDECO") - Description of Corporate Business. State of Israel, Public Utilities Authority Electricity. Accessed March 2016. Here available
  4. ↑ "Israel cuts power to West Bank cities for second time".
  5. ↑ "Power cut again in Palestinian cities despite 'collective punishment' accusations".
  6. ↑ "Israeli government says not behind electric corp. decision to cut West Bank power – Diplomacy and Defense".
  7. ↑ "Israel Electric to resume West Bank power disruptions – Globes English".
  8. ↑ "Israeli electric company begins West Bank power cuts over debt". 23 February 2015.
  9. ↑ "Cutting Palestinians' electricity: It isn't just business, it's personal – Opinion".
  10. ↑ "IEC reduces Jericho electricity supply – Globes English".
  11. ↑ "Israel Electric Corporation to reduce power to Bethlehem".
  12. ↑ "Hebron becomes latest city to experience electricity cut".
  13. ↑ "Full power restored to West Bank after PA takes step to pay down NIS 1.74b. debt".
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