DUN'S 100 - 2016

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Electricity, Infrastructure &
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administrative sites, anticipating an annual saving
of 6.3M kWh (NIS 1.8M).
IEC was awarded first place in 2015 for quality-of-
service by a public institution for the 19th consecu-
tive year, according to the “Test of theNation” survey
by the Geocartography Research Institute.
Structural Change, Organizational Change Plan
and Efficiency Plan
In July 2013, a steering team was appointed to ex-
ecute the reform in the electricity sector and IEC;
headed by the Director of the Government Compa-
nies Authority, with participants from the Ministry
of National Infrastructure, Energy and Water, the
Treasury and others. In March 2014, the steering
team published a draft of its recommendations for
public reviewwhich included awide range of impor-
tant subjects relating to the government and IEC. In
November 2015, theministers urged theManaging
Directors of the Ministry of Energy and the Treasury
to begin forming a process coordinating the gov-
ernment’s position and to renew negotiations to
implement the Reform in the electricity sector with
the relevant parties in the government, the Company
and Workers’ Union. As of March 2016, there exist
fundamental differences between the government’s
position and that of the Histadrut, especially in is-
sues related to workers’ rights in the Reform. In the
Company’s opinion, negotiations between the par-
tiesmust continue andmust advance the Reform in
the electricity sector.
Business Development
The BusinessDevelopment Unit operates to expand
Company business and exploit its professional ex-
pertise, by-products, infrastructure, and additional
resources, and to generate additional income to
contribute to the Company’s financial strength to
compensate for income lost with the increased
introduction of IPPs to the generation sector and
the restriction of IEC’s future development. Most of
the Unit’s activities are overseas, mainly in Africa,
Central America, Eastern Europe and the FSU. IEC
also sells its professional services locally and to
the Palestinian Authority (PA). The Unit’s diverse
activities include: design, construction and opera-
tion of power stations and other renewable energy
installations overseas; sale of expertise, consulting,
and engineering services; commercialization of by-
products from electricity generation such as coal
ash, plaster, steam, gases, etc.; intelligent use and
rental of IEC infrastructure and other services, such
as construction of the PA electricity infrastructure.
The Company has expanded its activities in defense
services to include cyber-defense.
The Communication Venture
IECis associatedwith IBC(a communication compa-
ny) and holds 40%of its share capital. IECexecutes
all the design and optical cable deployment on IEC
infrastructure and grants IBC the exclusive right to
use company infrastructure and allotment of broad-
band, for the IEC optical network. During 2015, IEC
supplied IBC design and optical network deploy-
ment existing electricity infrastructure inBeerSheva,
Tel Aviv, Raanana, Ramat Hasharon, Kfar Saba, and
Netanya. It also connected other designated sites for
commercial customers. Furthermore, infrastructure
for IBC communication rooms was established at
IEC sites and comprised of a core network avenue,
Data Center, and IBC aggregate network layers. IEC
also provided storage and logistics related to com-
munication network deployment for IBC.
The Technological Incubator – KARAT
KARAT promotes technological ideas andwas estab-
lished to identify innovative ideas with commercial
potential within the scope of company activities.
The ideas, entrepreneurs, and inventors joining
the incubator are granted funding, professional
accompaniment, access to company laboratories
and physical infrastructure. In 2015, one of our
start-up companies was purchased by an Ameri-
can company (exit). To date, 14 start-ups are active
in KARAT: four are involved in the Smart Grid, six in
energetic efficiency, and four in renewable energies.
The Environment
IEC operates according to its environmental con-
servation policies and environmental vision with
long-term sustainability and a forward-looking vi-
sion to minimize the environmental consequences
of its activities.This is an integral part of all company
activities and subject to broad regulation led by the
Ministries of Environmental Protection, Health, the
Interior, and Municipal Association relating to the
environment. The Company invested NIS 950M in
the generation sector, mainly by installing emission-
reducing functions at the Orot Rabin Power Station.
Moreover, the Company invested another NIS7M in
special projects unrelated to generation systems.
IEC spent NIS 88M to comply with Ministry of Envi-
ronmental Protection demands. These investments
prevent and reduce future environmental damage
and cover rehabilitation costs. To integrate installa-
tions based on renewable energies, 10,300 small
PV installations with a capacity of 267 MW, 395
neto-meter installations with a capacity of 60 MW,
162 medium PV producers with a capacity of 300
MW, and 132.5MWhighmedium-voltage private PV
power units, were connected to the grid.
Community Involvement
IECisapioneer in communityactivities, asengrained
in the Company vision and policy. It is active in core
subjects of sustainability:
- The Company’s fourth corporate sustainabil-
ity report for 2015 was published according to
GRI:G-4.
- The Company is rated Platinum+, Grade 91.
- Overall community activities in local authorities,
with over 100 study programs in over 80 local au-
thorities for middle-school students, disseminat-
ing study programs in energy efficiency as a way
of life.
- Three schools from different sectors participated
in “Experiencing Industry”, a programsponsored by
theMinistry of Education to encourage higher-grade
students to select technological education and sup-
port its adaption to international standards.
- Conservation and heritage preservation
activities.
- Workers and managers volunteered as mentors
in the Israel Association of Community Centers, for
groups to improve and advance integration of busi-
nesses in the community.
261,000 people were directly and indirectly ex-
posed to these activities.3,500 schools in 200 local
authorities participated in the Netiv Haor program
for safety and intelligent electricity use in educa-
tional-fun activities. 250 company employees and
12 pensioners volunteered and this year students’
parents in 25 towns were also involved.
RiskManagement & Continued Business Activity
The Company operates according to the directives
of the Government Companies Authority in Risk
Management integrated throughout the Company,
according to the Risk Management Master Plan.
IEC implemented a data system for risk manage-
ment and began risk surveys for central mapping
processes to rate the risks in the Company taking
the anticipated changes in the electricity market
into account. Furthermore, the in-depth survey for
fraud and embezzlement was completed and its
recommendations were considered in a detailed
work plan.
Preparing for Emergencies/ Crises
IEC continued expanding its preparations for emer-
gencies/ crises and participated in two national
exercises: preparing for extreme scenarios of dras-
tic summer weather and preparing for an extreme
winter, including cyber-attacks. It participated in
national activities and exercises, local and regional,
together with government ministries, designated
authorities, the Home Front Defense Ministry, the
Ministry of National Infrastructure, Energy and Wa-
ter, the Home Front Command, and the Police. IEC
continues to prepare for earthquakes, to minimize
destruction, lessen the loss of lives, and reduce
damage to the electricity supply.
Look for us on – the official page of Israel Electric
P.O.B. 10, Haifa 3100001
Tel: 972-4-8182222
Fax:972-4-8186100
* See Top Executives Profiles - Page 582