CAIRO: Earlier reports that Israel would agree to a request by the Egyptian government to raise the cost of natural gas to the Jewish state appear to have failed. The Israeli government denied that request on Tuesday, arguing that it was “unsure” if the price increases were in the Israel Electric Corporation's (IEC) best interests. The IEC had agreed last week, at least in principle, to increase the price of Egyptian natural gas by around 50 percent, but the Israeli government had to approve the decision, which they have not. The government owns 99 percent of the company's shares. The price hike would have required the agreement of the finance and infrastructure ministries. In a letter sent by the Israeli Infrastructure Ministry's Secretary-General, Shaul Tasmeeh asked IEC for details concerning the most recent negotiations with Egypt's Eastern Mediterranean Gas (EMG), which supplies the natural gas to Israel. Tasmeeh told IEC to explain their reasoning for agreeing to purchase natural gas from Egypt at the higher rates. He argued that commercial and economic benefits of increasing costs on power consumption as a result of the agreement must be explained to the Israeli government before further negotiations can take place. Tasmeeh's letter warned that the ministry would not issue any such approval until it has considered the details and dimensions of the deal with EMG. He added that any agreement must ensure “it is in Israeli interests.” Tasmeeh also submitted another report to Infrastructure Minister Awzi Lando as well as the Prime Minister's Office Director Eyal Gabbai, continuing the government's demand that IEC report the reasons behind its agreeing to EMG's price increase demands. The ministry, he argued, has a right to understand and investigate all details concerning the agreements of the publicly owned company. As a result, IEC has decided to postpone the company's general assembly meeting, where a vote on the decision was expected. The meeting had been scheduled for September 22. Egypt's Al-Masry Al-Youm newspaper reported that company officials have been sworn to secrecy over the deal. The newspaper reported that “the instructions to maintain secrecy came to thwart any attempt by IEC to take legal action demanding an increase in natural gas prices.” Egyptian activists have protested and demanded the government not agree to a deal that is well below international market rates for natural gas and called on EMG to withdraw from the agreement. A number of Egyptian Members of Parliament have filed lawsuits in order to void the agreement. BM
