Chemical News
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Israeli antitrust commissioner looks to limit Delek role in private power sector
https://www.chemnet.com Sep 22,2011 Platts
Israel's antitrust commissioner believes that the involvement of the Delek Group in the natural gas sector as well as in the private power field is anti-competitive, according to a legal opinion released on Tuesday.
Commissioner David Gilo made it clear that he would not approve any further involvement of the Delek Group in the private power industry.
The antitrust commissioner hinted in his first legal opinion on the issue of cross ownership in the energy field that he would limit the Delek Group's involvement in the rapidly expanding private power industry.
The Delek Group dominates the local gas production industry through its stakes in the Yam Thetis, Tamar, Leviathan and Dalit offshore fields and is also a major player in the private power industry.
At present, the Delek Group has a majority stake in five existing or planned power plants and a minority stake in a sixth.
The commissioner also hinted in his opinion that he may not grant approval to Delek Group's purchase of an 84% stake in the Eshkolot gas power plant in Kiryat Gat. Last year, Delek acquired its stake in the 240 MW power plant.
The commissioner's policy could force Delek to sell its stake in the planned power plant.
Israeli energy industry sources note that Delek's position in the natural gas sector gives it an unfair competitive advantage in the private power field.
The sources noted that natural gas accounts for 60% of the cost of producing electricity.
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