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The Public Utilities Authority – Electricity – New Book of Standards

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Book of Standards

January 2014 The right and legal content is the Hebrew version


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Setting the standards for the level and quality of services provided by an Essential Service Provider

In accordance with the Electricity Sector Law, 1996

By the power vested in it by closes 30 (2) and 33 of the Electricity Sector Law, 19961, the Public Utilities

Authority – Electricity hereby establishes an updated version of the Book of Standards, for the level and

quality of services provided by a holder of an Essential Service Provider license, as specified herein:

1 Book of Laws 1996, p. 208; 2003, p. 388


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Table of contents

Chapter A: Overview ............................................................................................................................. 13

Section A: Introduction ...................................................................................................................... 13

1. Definitions ............................................................................................................................. 13

2. Interpretation ........................................................................................................................ 23

3. Duty of good faith .................................................................................................................. 24

4. Statutory documentation ....................................................................................................... 25

5. Notifications........................................................................................................................... 26

6. Interest .................................................................................................................................. 27

7. Payment to consumers for violation of standards ................................................................... 28

7a. Information .............................................................................................................................. 29

7b. Call center ................................................................................................................................ 30

Section B: Ownership of Electrical Equipment .................................................................................... 31

8. Ownership of electrical equipment......................................................................................... 31

9. Coordinated visit to the consumption location ....................................................................... 32

10. Protecting equipment ........................................................................................................ 33

11. Modifications to an electricity facility ................................................................................. 34

12. Removing obstacles ............................................................................................................ 35

Chapter B: Electricity Consumption ....................................................................................................... 37

Section A: Consumption..................................................................................................................... 37

13. Determining the amount of electricity consumed ............................................................... 37

14. Conducting a consumption estimate .................................................................................. 40

15. Testing the accuracy and proper working order of a meter ................................................. 42

16. illegal consumption of electricity ........................................................................................ 46

17. Termination of consumption services by the consumer ...................................................... 48

18. Registering a new consumer ............................................................................................... 50

19. Changing consumers .......................................................................................................... 51

20. Prepaid meters (PPM) ........................................................................................................ 53

Section B: Bills and Payments ............................................................................................................ 54

21. Payment obligation ............................................................................................................ 54

22. Bill delivery......................................................................................................................... 56


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23. Content of the bill .............................................................................................................. 58

24. Payment dates ................................................................................................................... 60

25. Method of payment ........................................................................................................... 62

26. Final bill .............................................................................................................................. 64

27. Billing errors ....................................................................................................................... 66

28. Detailed billing information ................................................................................................ 68

Section C: Electricity Consumption Rates ........................................................................................... 69

29. Definitions .......................................................................................................................... 69

30. Method of billing ................................................................................................................ 70

31. Load and Time Rate (LTR) ................................................................................................... 73

Section D: Consumer Appeals and Complaints ................................................................................... 76

32. Methods of contacting an Essential Service Provider .......................................................... 76

33. Handling written and phone complaints by consumers ....................................................... 77

34. Complaints handled at the consumption location ............................................................... 78

Chapter C: Connection to the Network .................................................................................................. 80

Section A: Definitions ........................................................................................................................ 80

Section B: Network Component ......................................................................................................... 81

35(b)(1) Cancelled.......................................................................................................................... 81

35(b)(2) Payment dates ................................................................................................................. 81

Section C: Low Voltage Connection .................................................................................................... 82

35(c)(1) Low voltage connection .................................................................................................... 82

35(c)(2) Payments for low voltage connection ............................................................................... 83

35(c)(3) Submitting a request for connection ................................................................................. 85

35(c)(4) Technical coordination ...................................................................................................... 87

35(c)(5) Changing and canceling a request for connection ............................................................. 89

35(c)(6) Obtaining authorizations from the authorities .................................................................. 90

35(c)(7) Preparing the building for connection ............................................................................... 91

35(c)(8) Conducting the connection work ...................................................................................... 92

35(c)(9) Examinations of a facility and voltage supply .................................................................... 93

35(c)(10) Quick connection ............................................................................................................ 94

35(c)(11) special cases ................................................................................................................... 95

Section D: High Voltage Connection ................................................................................................... 96


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35(d)(1) High voltage network connection ..................................................................................... 96

35(d)(2) Payments for low voltage connection ............................................................................... 97

35(d)(3) Submitting a request for connection ................................................................................. 99

35(d)(4) Technical coordination ................................................................................................... 101

35(d)(5) Changing and canceling a request for connection ........................................................... 103

35(d)(6) Independent power facility ............................................................................................. 104

35(d)(7) Responsibilities and ownership ....................................................................................... 105

35(d)(8) Conducting and completing the connection work ........................................................... 106

35(d)(9) Examinations of the facility and voltage supply ............................................................... 107

35(d)(10) Additional feed ............................................................................................................. 108

35(d)(11) special cases ................................................................................................................. 109

Section D (a): Connecting a production facility to the high voltage network ..................................... 110

35(d)(a)(1) Preliminary feasibility survey ...................................................................................... 110

35(d)(a)(2) opening a connection file ........................................................................................... 113

Section E: Extra-high voltage connection ......................................................................................... 114

35(e)(1) Extra-high voltage and ultra-high voltage connection size ............................................... 114

35(e)(2) Payments for extra-high voltage or ultra-high voltage connection .................................. 116

35(e)(3) Submitting a request for connection of a consumption facility ........................................ 118

35(e)(4) Feasibility survey for transferring energy ........................................................................ 121

35(e)(5) Preliminary planning works ............................................................................................ 128

35(e)(6) Connection survey .......................................................................................................... 129

35(e)(7) Agreements .................................................................................................................... 136

35(e)(8) Changing and canceling a request for connection ........................................................... 140

35(e)(9) Conducting the connection work .................................................................................... 142

35(e)(10) Completing the connection work .................................................................................. 145

35(e)(11) Examination of a facility and entry into use .................................................................. 146

35(e)(12) Additional feed and backup line .................................................................................... 149

35(e)(13) Resolving disputes ........................................................................................................ 150

Section F: Special Cases ................................................................................................................... 151

35(f)(1) Irregular connection ........................................................................................................ 151

35(f)(2) Special connection .......................................................................................................... 159

35(f)(3) Irregular connection ........................................................................................................ 161


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Chapter D: Supply Reliability ................................................................................................................ 164

Section A: Rolling Power Cuts .......................................................................................................... 164

36. Power cuts and power supply interruptions ..................................................................... 164

37. Power cut notification ...................................................................................................... 165

38. Power cut cancelation notification ................................................................................... 167

39. Notification of electricity supply renewal after a power cut or a prolonged interruption .. 168

Section B: Renewal of Electricity Supply ........................................................................................... 169

40. Renewal of electricity supply ............................................................................................ 169

Section C: Supply Methods .............................................................................................................. 171

41. Quality of power .............................................................................................................. 171

Section D: Sheddings ....................................................................................................................... 177

42. Frequency shedding ......................................................................................................... 177

43. Voluntary shedding by operation of independent generators ........................................... 183

44. Voluntary shedding by means of a rolling peak ................................................................. 189

45. Periodic demand reduction arrangement and efficient consumption ................................ 194

45a. Periodic demand reduction arrangement and efficient consumption for consumers in a 20/20

unified rate .................................................................................................................................. 197

46. Voluntary shedding by operation of independent generators and selling energy to the

network ....................................................................................................................................... 200

47. Smart consumption arrangement ..................................................................................... 207

47a. Voluntary shedding arrangement for large electricity consumer ........................................... 217

Section E: Damages to Electrical Appliances ..................................................................................... 222

48. Damages to electrical appliance in a steady state ............................................................. 222

49. Compensation for damages to electrical appliances ......................................................... 224

Chapter E: Network Services ................................................................................................................ 225

Section A: Receiving Network Services ............................................................................................. 225

50. Receiving network services ............................................................................................... 225

51. Requesting network services ............................................................................................ 226

52. Date of providing network services .................................................................................. 228

53. Termination of a private transaction and switching suppliers ........................................... 229

54. Classification of transactions ............................................................................................ 231

55. Payment to the Essential Service Provider for losses in a private transaction .................... 232


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56. Weekly consumption plan ................................................................................................ 233

57. Daily consumption plan .................................................................................................... 235

58. Electricity supply during a private transaction period ....................................................... 237

59. Deviation from the daily consumption plan (accounting for surplus and deficiency) ......... 239

60. Payment for infrastructure services .................................................................................. 240

61. Fixed payment .................................................................................................................. 241

62. Issuing bills to suppliers .................................................................................................... 242

63. Consumer meter Installation and reading ......................................................................... 243

64. Obligation of the Essential Service Provider ...................................................................... 245

65. Reporting to the Authority ............................................................................................... 246

66. Resolving disputes ............................................................................................................ 247

67. Application of the standards ............................................................................................. 248

Chapter F: Acquisition of Electricity, Maintenance and Operating Regime of Holders of an Independent

Producer License ................................................................................................................................. 249

Section A: General ........................................................................................................................... 249

68. General ............................................................................................................................ 249

69. Communication system – data and speech ....................................................................... 251

70. Contact between the System Manager and the producer ................................................. 252

71. Operating the production unit .......................................................................................... 253

72. Setting parameters for the operation of the facility .......................................................... 254

73. Conducting examinations ................................................................................................. 255

74. Calculation of payment for acquisition of energy during the period acceptance examinations

257

75. Method of payment for energy transferred to the network during the period acceptance

examinations ............................................................................................................................... 258

76. Compensation for not connecting producers to the transmission network ....................... 259

77. Preserving and submitting information............................................................................. 260

78. Reporting to the Authority ............................................................................................... 261

Section B: Metering and Bills ........................................................................................................... 262

79. Fixed payment .................................................................................................................. 262

80. Producer meter installation .............................................................................................. 263

81. Reading producer meters ................................................................................................. 264


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82. Issuing bills to producers .................................................................................................. 265

Section C: Operating regime ............................................................................................................ 267

83. Meeting availability requirements .................................................................................... 267

84. Meeting the reliability requirements ................................................................................ 271

85. Meeting the operating parameters ................................................................................... 273

Section D: Maintenance ................................................................................................................... 274

86. Regulations for submitting a maintenance plan ................................................................ 274

87. Deviation from the mandatory maintenance plan ............................................................ 276

88. Payments for deviation from the maintenance plan ......................................................... 277

89. Premises maintenance by the Essential Service Provider .................................................. 279

Section E: Producers Connected to the Transmission Network ......................................................... 280

90. Daily plan for available capacity and production of a facility (“weekly production plan”) .. 280

91. Daily plan for available capacity and production of a facility or production unit (“weekly

production plan”) ........................................................................................................................ 283

92. Changes to the production plan by the producer and supplier .......................................... 292

93. The general loading plan .................................................................................................. 293

94. The specific loading plan .................................................................................................. 295

95. Payments for deviation from the specific loading plan – surplus and deficiency ................ 296

96. Obligation to provide reactive capacity to the System Manager ....................................... 298

97. Administrative deviations ................................................................................................. 299

98. Producer preliminary survey for gas consumption quantities under fixed available capacity

300

99. Commitment to acquire gas quantities under fixed available capacity – general gas survey

and binding gas survey................................................................................................................. 302

100. Minimum conditions for the commitment of System Manager to use gas under fixed

available capacity by the results of the binding gas survey ........................................................... 307

101. Rules for dividing the facility into fixed and variable availability ........................................ 308

102. Acquisition of variable available capacity and energy out of variable available capacity .... 309

103. Acquisition of fixed available capacity .............................................................................. 310

104. Calculating gas consumption under fixed and variable available capacity ......................... 311

105. Division of responsibility in the fulfillment of the gas agreement ...................................... 312

106. Converting variable available capacity into fixed available capacity and vice versa........... 313

Section F: Co-generation Producers Connected to the Transmission Network .................................. 315


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107. General ............................................................................................................................ 315

108. Calculation of payment for energy acquisition .................................................................. 317

109. Calculating the quantity of electricity sold to the System Manager ................................... 318

110. Rates for co-generation producers in case of failure of the facility to meet the terms of its

definition ..................................................................................................................................... 319

111. Monitoring quantities of energy purchased - reporting to the Authority .......................... 320

Section G: Producers Connected to the Distribution Network .......................................................... 321

112. Application of standards ................................................................................................... 321

113. Submitting maintenance and production plans................................................................. 322

114. Energy production allocation plan as part of the provision of network services ................ 324

115. Producers of less than 1 MW ............................................................................................ 326

116. Producers of between 1 MW and 5 MW ........................................................................... 327

117. Payment for acquisition of energy .................................................................................... 328

118. Meter reading for a consumer under a transaction with a producer holding a supply license

and connected to the distribution network .................................................................................. 329

119. Settlement with the provider in case of a transaction with a producer holding a supply

license and connected to the distribution network ...................................................................... 330

120. Payment for surplus ......................................................................................................... 331

Section H: Producers of Renewable Energy ...................................................................................... 332

121. Submitting plans .............................................................................................................. 332

122. Payment for acquisition of energy .................................................................................... 334

Section I: Self-Producers .................................................................................................................. 335

123. Regulations for the operation of self-producers................................................................ 335

Section J: Special Cases .................................................................................................................... 336

124. Irregular states ................................................................................................................. 336

125. Use of alternative fuels..................................................................................................... 338


Section K: Pumped Energy Producers............................................................................................... 341

127. Sale and acquisition of energy and accompanying services ............................................... 341

128. Emergencies ..................................................................................................................... 346

129. Payment insurance for independent power producers ..................................................... 347

130. Rate arrangement in case of a force majeure event and an insured event – definitions .... 348


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131. Notification regarding a force majeure event and its classification ................................... 355

132. Rate arrangement in case of a force majeure event .......................................................... 356

133. Rate arrangement in case of a termination of an acquisition transaction due to a force

majeure event ............................................................................................................................. 361

134. Payment ........................................................................................................................... 365

135. General provisions regarding force majeure ..................................................................... 368

136. Application of a force majeure event arrangement ........................................................... 370

137. Force majeure rates and liability – insurance terms for an independent producer ............ 373

138. Operating period of the facility – required insurances ...................................................... 375

139. General provision regarding insurance ............................................................................. 377

140. Insured event ................................................................................................................... 381

141. Liability............................................................................................................................. 382


Chapter G: Works on Account of Others .............................................................................................. 390

Section A: Standard Works .............................................................................................................. 390

143. Definitions ........................................................................................................................ 390

144. Charging consumers for works on account of others ........................................................ 391

145. Submitting a request for works on account of others ....................................................... 393

146. Technical coordination ..................................................................................................... 395

147. Obtaining authorizations from the authorities .................................................................. 397

148. Conducting the work ........................................................................................................ 398

149. Conducting the work through the fast track ..................................................................... 400

150. Amendment, change or cancelation of a work request ..................................................... 401

151. Removing obstacles .......................................................................................................... 403

152. Information transparency, report and control .................................................................. 404

153. Special cases .................................................................................................................... 405

154. To be determined ............................................................................................................. 406

155. To be determined ............................................................................................................. 406

156. To be determined ............................................................................................................. 406

157. To be determined ............................................................................................................. 406

158. To be determined ............................................................................................................. 406

159. To be determined ............................................................................................................. 406


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160. To be determined ............................................................................................................. 406

161. To be determined ............................................................................................................. 406

162. To be determined ............................................................................................................. 406

163. To be determined ............................................................................................................. 406

164. To be determined ............................................................................................................. 406

165. To be determined ............................................................................................................. 406

Chapter H: Environmental Quality ....................................................................................................... 407

Section A: Premium for Benefiting the Economy by Reduction of Pollution ...................................... 407

166. Premium eligibility ........................................................................................................... 407

167. Applying to the Authority to set the premium amount ..................................................... 408

168. Payment of the premium.................................................................................................. 412

169. Reports ............................................................................................................................ 414

Section B: Premium for Reduction of Pollution in Existing Fuel Oil Stations ...................................... 415

170. Premium eligibility ........................................................................................................... 415

171. Applying to the Authority to set the premium amount ..................................................... 416

172. Payment of the premium.................................................................................................. 417

173. Issuing bills ....................................................................................................................... 418

174. Reports ............................................................................................................................ 419

Section C: Distributed Energy Production for Self Consumption and Consumer Production Using a

Photo-Voltaic or Wind Turbine System ............................................................................................ 420

175. Integration of a facility into the network by a distributer .................................................. 421

176. Consumer payment arrangements ................................................................................... 422

177. Submitting a request for integration of a facility into the electricity network .................... 425

178. Technical requirements .................................................................................................... 429

179. Installation of the facility .................................................................................................. 430

180. Connecting two facilities (photo-voltaic and wind turbine) or connecting two parts of a

photo-voltaic system in a single consumption location................................................................. 431

181. Examination of the facility and its integration into the electricity network........................ 432

182. Maintenance of the facility ............................................................................................... 434

183. Data management and reporting duty .............................................................................. 435

Section D: Solar Electricity Production for Holders of Production Licenses with Facilities Connected to

the Distribution Network ................................................................................................................. 437


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184. Connecting a facility to the distribution network .............................................................. 437

185. Payment arrangements .................................................................................................... 438

Section E: Solar Electricity Production for Holders of Production Licenses with Facilities Connected to

the Transmission Network ............................................................................................................... 440

186. Integration of a facility into the network by an Essential Service Provider ......................... 440

187. Meter installation and reading ......................................................................................... 442

188. Payment arrangements and reporting to the Authority .................................................... 443

189. Use of fossil fuels ............................................................................................................. 444

Section F: Wind Energy Production by Wind Farms with a Capacity Exceeding 50 KW ...................... 445




193. Connecting a wind farm and a solar facility on the same land division .............................. 449

Section G: Biogas Energy Production by Anaerobic Digestion Facilities Connected to the Distribution

Network .......................................................................................................................................... 450



Section H: Distributed Electricity Production from Renewable Energy Using Net Meters .................. 452

196. Integration of a facility using net meter by the distributer ................................................ 452

197. Consumer payment arrangements ................................................................................... 454

198. Submitting a request to the distributer for integration of a facility into the electricity

network ....................................................................................................................................... 456

199. Technical requirements .................................................................................................... 460

200. Installation of the facility .................................................................................................. 461

201. Examination of the facility and its integration into the electricity network........................ 462

202. Maintenance of the facility ............................................................................................... 464

203. Data management and reporting duty .............................................................................. 465

Section I: Electricity Production for Holder of Production Licenses with Vanguard Facilities ............. 466

204. Integrating a facility into the network ............................................................................... 466


206. Payment arrangements and reporting to the Authority .................................................... 468

207. Cancellation of standards ................................................................................................. 470


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Chapter A: Overview

Section A: Introduction

1. Definitions

“Rate Authorization” – a document from the Authority which includes the rates of the rate

settlements in the standards: force majeure and insurance, dedicated account, guarantee and

alternative fuels, and in the consumer rates for electricity acquisition, acquisition of availability and

energy or accompanying services purchase, as defined by the Authority, given at the financial closing

date, and only updated in accordance with the updating mechanism contained in the authorization;

“Ampere” – a basic current unit used to create a conversion table to kilovolt-ampere units (kVA);

“Energy fed to the network” – the value measured in kilowatt per hour by a meter installed on the

generator terminals or at the connection point of a production facility to the network, as specified in

these standards;

“Renewable energy” – energy derived solely from one of the following sources: sun, wind, water,

organic waste, drainage or other natural phenomena;

“Building” – as defined by the Planning and Building Act, 1965;2

“Ordered connection size” – the size of an ordered connection is calculated in kilovolt-ampere units

according to table 8-4.3, and is the maximum demand the connection applicant shall be entitled to

consume from the network or supply to the network at the point where the meter is installed;

“Voluntary skipping” – a decision by an Essential Service Provider not to conduct an actual meter

reading for a specific billing period, for reasons of the Essential Service Provider only;

“Increasing the size of a connection” – increasing the supply capacity of the connection;

“The Arrangement” – a voluntary shedding arrangement by means of operating independent

generators;

“Notification” – including bills;

“Gross capacity” – the electricity capacity of a production unit, measured in megawatts at the

terminals of the generator;

“Net capacity” – the gross capacity in megawatts minus the self consumption capacity of the

production unit and transformation loses;

2 Book of Laws 1965, p. 307.


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“Power cut” – a cut of the electricity supply as a result of a voluntary action by the Essential Service

Provider in an electricity facility of the supplier or the producer;

“Power supply interruption” – an unforeseen malfunction that interrupts the supply of electricity;

“Temporary interruption” – an interruption to the electricity supply starting with the stopping of a

line, a line section or a single transformer, and ending with its successful automatic connection

without requiring intervention;

“Continuous interruption” - an interruption to the electricity supply starting with an undesired and

unplanned stopping of a line, a line section or a single transformer, which is not a temporary

interruption and ending with the connection of the last consumer;

“Current reduction” – installation of a fuse that temporarily reduces the current of electricity from

the installed connection size to a smaller connection size;

“The Authority” – The Public Utilities Authority – Electricity, established under close 21 of the

Electricity Sector Law;

“Holidays” – Israeli holidays as specified in close 18a of the Law and Administration Ordinance,

1948.3

“Switching room” – a room with switching means for the high voltage network;

“Electricity Sector Law” or “the Law” – the Electricity Sector Law, 1996;

“IEC” – the Israeli Electric Corporation ltd.;

“Connection” – a connection of a producer or a building to the electricity network, including

changes to the size of an existing connection; the connection infrastructure shall include overhead

or underground conductors, instruments and other facilities for conducting and distributing

electricity from the electricity network to the meter;

“Temporary connection” – a connection intended for anyone who requires electricity supply for a

limited time not longer than three years;

“Irregular connection” – a connection that involves establishing a dedicated electricity network

where no development plans exist for future electricity demands from the network, according to

NOP 35 or regional and local outline plans or both, and all subject to standard specified in close 35

(f);

“Special connection” – a connection whose cost is not specified in the rate tables, except an

irregular connection.

“Public connection” – a connection intended for the use of all residents of a building;

3 Official Gazette 1948, supplement A, p. 1.


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“EJD” – the Electric Corporation District of Jerusalem ltd.;

“Premises” – land that is not registered in the books of the Essential Service Provider under the

name of a specific consumer, and is held by a consumer or any person on his behalf, including

common property;

“Plan deviation” – discrepancies or deviations of available capacity and energy or of energy in

consumption or sale of electricity by a producer, a supply license holder (“supplier”) or a private

consumer, in relation to a relevant approved plan, except due to consumer shedding by order of an

Essential Service Provider or due to malfunctions in the transmission, distribution or communication

systems;

“Bill” – a consumption bill or a service bill;

“Consumption bill” – a billing notice by an Essential Service Provider for regular electricity supply to

a consumer and for services related to this electricity supply;

“Service bill” – a billing notice an Essential Service Provider for connection works, infrastructure

works and works on accounts of others.

“Bill error” – any error or inaccuracy in the bills issued by the Essential Service Provider, including

consumption reading, consumption estimate, calculation and implementation of rates, except in

regards to standard 13 (g);

“Production unit” – as defined in the Electricity Sector Regulations (Conventional Independent

Power Producer), 2005;4

“Cogeneration production unit” – as defined in the Electricity Sector Regulations (Cogeneration),

2004;5

“Available supply capacity” - as defined in the Electricity Sector Regulations (Conventional

Independent Power Producer), 2005;

“Available capacity” – the net capacity that a production unit is able to supply;

“Available capacity for private transactions” – the part of the variable available capacity used by a

producers for private transactions with consumers;

“Available capacity for the System Manager” – the part of the variable available capacity allocated

by a producers to the System Manager;

“Variable available capacity” – the part of the available capacity available to the producer;

4 Collection of Regulations 2005, p. 407.

5 Collection of Regulation 2005, p. 257.


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“Fixed available capacity” – the part of the available capacity available to the System Manager as

specified in the standards;

“Producer”, “independent producer” or “independent power producer” – a holder of a conditional

license, a production license or production licenses who is not an Essential Service Provider;

“Renewable energy producer” – a producer whose production facility operates using –

(1) Renewable energy only;

(2) Renewable energy using fossil fuel with the following cumulative conditions:

(a) The proportion of fossil fuel use shall not exceed 30% of the total energy produced by

the facility;

(b) The use of fossil fuel is essential to support production by renewable energy;

“Cogeneration producer” – a producer using a cogeneration production unit;

“Conventional producer” – same as independent producer as defined in the Electricity Sector

Regulations (Conventional Independent Power Producer), 2005;

“Force majeure” – as defined in standard 130;

“Rules” – subsidiary legislation by the minister of National Infrastructures, by virtue of the authority

vested to him by the Electricity Sector Law and the Electricity Law, 1954;6

“Tables of rates” – published by the Authority from time to time;

“Connection applicant”, “the applicant” – a person requesting a connection to the electricity

network of an Essential Service Provider for the purpose of acquisition or sale of electricity,

receiving or providing infrastructure services or receiving backup services, for himself or for others,

including requests to change the size of an existing connection, and for whom a work file is open in

the offices of the Essential Service Provider;

“Work applicant” – a person requesting work on accounts of others;

“Meter” – including all equipment used to measure electricity;

“Essential Service Provider representative” – an Essential Service Provider employee or any person

authorized by him to act;

“Nuisance” – as defined in the Torts Ordinance [new version], (hereinafter “The Torts Ordinance”);7

6 Book of Laws 1954; p. 190.

7 Laws of the State of Israel, new version 10, p. 266.


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“Measuring container” – a measuring transformer for voltage and current installed inside a sealed

container;

“Electricity facility” – as defined in the Electricity Sector Law;

“Supplier electricity facility” – an electricity facility owned by an Essential Service Provider, up to

the meter terminals of a private electricity facility;

“Private electricity facility” – an electricity facility that is not a supplier electricity facility;

“Production facility” – a facility used for producing electrical energy, including, amongst others, the

production units located at the site, as well as structures, machines, instruments, batteries,

conductors, accessories and stationary or mobile electrical equipment related to them;

“Centralized sale” – electricity supply in a single metering point to a consumption location with one

consumer and many receivers of supply;

“System Manager” – holder of a license to manage the system as defined in the Electricity Sector

Law;

“Supplier” – an electricity consumer holding a supplying license as defined in the Electricity Sector

Law;

“Metering systems” – systems of meters and measuring transformers, including low voltage cables

used to connect the meters and the measuring transformers and the meters cabinet;

“Irregular state” – as specified in standard 124;

“Unique facilities cluster” – a group of unique consumption facilities with similar electricity

consumption characteristics as approved by the head of the engineering department of the

Authority, except unique consumption facilities with meters installed for the purpose of billing

actual consumption;

“Compatibility coefficient” – a statistical coefficient describing the relation between the aggregated

maximum demand at a point in time and the sum of aggregated connection sizes;

“Consumption location” – area of land or a number of areas of land for which a connection to the

electricity network is provided and a person is registered in the books of the Essential Service

Provider, including the registration of a meter if installed;

“Emergency” – as specified in standard 128;

”Network component” – payment for participation in the required investments to develop the

electricity network depending on the ordered connection size, in every connection order;

“Unique consumption facility” – a facility connected with a connection size smaller than 1X25

ampere;


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“Pecuniary injury” – as defined in the Torts Ordinance;

“Power disconnection” – a voluntary cut of the power supply by an Essential Service Provider to a

consumer’s independent power facility due to a violation of one or more standards;

“Basic services basket” – including, amongst others, the following services: examination and

administration of maintenance plans; production and consumption accordingly, drawing accounts,

sending bills, collecting bills, meter reading, capital costs and meters operation (annual payment),

payment for meters department services, payment for public services, payment for publishing costs;

“Essential Service Provider”, “ESP” or “provider” – a holder of a license for managing the system,

and for transmission or distribution of electricity;

“Civil work” – any of the following works conducted under works on accounts of others: excavation

and covering of ditches, reconstruction of pavements and roads, laying cables, laying cable

threading tubes, horizontal drilling, foundation cutting, foundation dismantling, excavation of holes

for posts, drilling and casting piles for posts; excavation of holes for post anchors; infrastructure for

miniature transformation stations;

“Electrical work” – any work under works on accounts of others that is not a civil work, including

planning, technical coordination, supervision and office works;

“Standard work” – any of the works specified in the Table of Rates WAO number 4.4;

“Connection work” – the electrical and infrastructure works involved in connecting to the electricity

network, including technical coordination and office works;

“Excavation work” or “excavation” – any excavation, laying and reconstruction work required for

the connection;

“Work on account of others” or “WAO” – work conducted on the infrastructure of an Essential

Service Provider at the request of a person, except for a connection;

“Natural gas transaction” – a transaction for acquisition of natural gas between a producer and a

gas supplier that includes a gas quantity with a minimum payment requirement under TOP;

“Private transaction” – a direct transaction for the sale of energy between a producer and a

supplier or between a supplier and private consumers at a price between a willing buyer and a

willing seller;

“Near transaction” or “far transaction” – as defined in Table of Rates 7.1-1;

“Acquisition transaction” – a transaction between the System Manager and a producer for the

acquisition of electrical energy or for the allocation of available capacity and electrical energy or for

the acquisition of accompanying services;

“Infrastructure transaction” – a transaction for the acquisition of infrastructure services;


19

“Meter distribution” – installation of each meter next to the apartment for which it is installed in an

apartment building;

“Books of an Essential Service Provider” – accounting books, meters, standard measuring

instruments and any other documents used by the Essential Service Provider in its normal course of

business;

“Activity” – any of the following: production, transmission, distribution, supply or trade of

electricity;

“Switching action” – an automatic electrical action that includes disconnection and immediate re-

connection of power;

“Consumer” – as defined in the Electricity Sector Law;

“Private consumer” – a consumer in a private transaction;

“Registered consumer” – a consumer with specific land registered to his name as the consumption

location;

“Licensed contractor” – a contractor with the appropriate classification to conduct works required

under WAC that is lawfully registered in contractors register;

“Connection line” – a line used to transfer electricity from the electricity network to the outlet

terminals of the meter;

“Kilovolt-ampere” or “kVA” – a basic power unit whose multiplications are used to indicate the

connection size for payment;

“Accountant General Interest” – the general interest determined by the accountant general that is

used as a base to calculate most of the interests in agreements and transactions of the state; this

interest is adjusted and updated in correspondence with the interest of the market and is modified

depending on any change of interest announced by the bank of Israel;

“Interest for delay” – the interest for delay determined by the accountant general of the treasury

and published from time to time;

“Meter centralization” – installation of all meters for the same building in a single location that is a

meters pillar or a dedicated electricity room, at the entrance to the building or in one of the floor, in

an apartment building;

“Floor meter centralization” - installation of all meters for the same floor or for a number of floors

in an apartment building (but not for the entire building) in an electricity room;

“System management license” – as defined in the Electricity Sector Law;

“Production component” – as specified in Table of Rates 6.3-1;


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“Voluntary production component for a cogeneration producer” – a rate paid by the System

Manager for acquisition of energy from a cogeneration independent producer, if the producer elects

to submit half-hour rate proposals, as specified in standard 107;

“Production component for a conventional producers connected for distribution” – a rate paid by

a holder of a transmission license for acquisition of energy from a conventional producer connected

to the distribution network, as specified in Table of Rates 6.5-3;

“Production component for a cogeneration producer” - a rate paid by the System Manager for

acquisition of energy from a cogeneration independent producer, in accordance with the rate

specified in the Rate Authorization;

“Electricity network” – as defined in the Electricity Sector Law;

“High voltage network” – a group of overhead or underground conductors, instruments and other

accessories for the transmission of electricity at 400 volts (nominal measurement);

“Cross section area of a feeding cable” – cross section in square millimeters of conductors in the

connection cable;

“Services” – all services provided by a holder of an Essential Service Provider license, including

connections to the electricity network, energy services, services involved in electricity acquisition,

electricity consumption services, transmission services, distribution services, supply services,

infrastructure services and backup services;

“Backup services” – as defined in the Electricity Sector Law;

“Accompanying services” – services required for maintaining the reliability and quality of the

electricity supply by the electricity network, including voltage stabilization, frequency stabilization,

reactive energy and different types of reserves;

“Infrastructure services” – as defined in the Electricity Sector Law;

“Measuring transformer” – voltage and current transformers for the measurement of voltage and

current in high values and different voltages;

“Reading date” – the date appearing on the electricity bill as the reading date, whether a reading

was made by an Essential Service Provider or a consumer, or is based on a consumption estimate;

“Load plan” – the load plan of all production unit in the sector for every half hour determined by the

System Manager before beginning the load, as specified in standard 93;

“Specific load plan” – a plan specifying the load of a production unit for every half hour determined

by the System Manager a number of hours before loading the unit, as specified in standard 94;

“Updated Specific load plan” – the specific load plan with guidelines for load change given by the

System Manager in real time;


21

“Energy allocation plan” – a report submitted by a producer connected to the distribution network

to the system manger that includes the order, scope and allocation of energy fed to the network

between its consumers, in the report form specified in standard 114;

“Daily plan for available units in a facility and production” or “production plan” – a daily report

submitted by a producer to the System Manager that includes the available capacity of each unit in

the production facility, the fixed available capacity of the units in the facility, the variable available

capacity, the variable available capacity for private transactions, the variable available capacity for

the System Manager and planned energy production; the plan shall refer to the following day, in

megawatts per hour, in a report form according to the type of producer as specified in form 1 of

standard 91;

“Daily consumption plan” or “consumption plan” – a daily report submitted by a supplier to the

System Manager that includes the planned aggregated consumption of consumers in private

transactions for the following day, in megawatts per hour, in the form specified in standard 57;

“Monthly production plan” – a report received by an Essential Service Provider from producers of

renewable energy in order to recognize the rate paid or received by the provider from these

producers connected to the distribution network, including a monthly report regarding planned

production and available capacity for each facility, as specified in chapter F section G;

“Weekly production plan” – a weekly report submitted by a producer to the System Manager that

includes the available capacity of the production facility, the fixed available capacity of the facility,

the variable available capacity, the variable available capacity for private transactions, the variable

available capacity for the System Manager and planned production for the following week, in

megawatts per hour, in the form specified in standard 90;

“Weekly consumption plan” - a weekly report submitted by a supplier to the System Manager that

includes the planned aggregated consumption of consumers in private transactions for the following

week, in megawatts per hour, in the form specified in standard 56;

“Maintenance plan” – a report submitted by producers to the System Manager that includes

maintenance dates for a facility and the maximum possible production capacity of the facility, in

megawatts, in the report form specified in standard 86;

“Rates” – as defined in the Electricity Sector Law;

“Half hour energy rates” – a rate paid by the System Manager for acquisition of energy from a

conventional energy producer connected to the transmission network, in accordance with a rate

proposal received from the producer, as specified in standard 102;

“Irregular connection rate” – a normative connection rate with additional charge for infrastructure

required under the connection order, in accordance with the rates specified in chapter 4.4 of the

rates tables “works on account of other”;


22

“Rate of deviation from the capacity coefficient” – a rate imposed for deviation from the reactive

component size for each of the voltages: extra-high, high and low;

“Electricity rate” – payment for use of electricity measured by consumption or actual transmission

of electricity, in kilowatts per hour;

“Load and Time Rate” or “LTR” – an electricity rate calculated by the system consumption load and

consumption time, intended for consumers with an electronic meter programmed for this rate;

“Centralized Sale Rate” – an electricity rate for consumers of low and high voltage distributing and

supplying electricity to others;

“Bulk rate” – electricity rate for sale of electricity to the Palestinian Authority;

“Unified Rates” – rates intended for consumption locations where a load and time rate compatible

meter is not installed; this rate is unified and calculated based on an annual average according to

the load and time rate and typical consumption hours for the group to which the consumer belongs;

for this purpose the groups are:

“Domestic” – an electricity rate intended for places of residence only that are issued an

authorization in accordance with the provisions of close 157a of the Planning and Building Act, 1965,

and regulation 5 of the Planning and Building Regulations (Authorizations for electricity, water and

phone services), 1981;8 places of residence only that were lawfully connected prior to the entry into

force of the act and places of worship and agricultural structures;

“Public street lighting” – electricity rate for the lighting of public streets;

“General” – an electricity rate intended for structures used for crafts, industry or commerce,

including education and culture institutions, immigration centers, structures used by associations

and non-profit organizations, clinics, hospitals, hotels, government offices and temporary connected

structures;

“Bill period” – the period specified in the consumption bill as the period for which the bill is

calculated for consumption;

8 Collection of Regulation 1981, p. 1042.


23

2. Interpretation

(a) Preservation of the law

The provisions of the Interpretation Act, 1981,9 shall apply to these standards.

9 Collection of Regulations 1981, p. 302.


24

3. Duty of good faith

(a) Duty to act in good faith

An Essential Service Provider shall provide services and a consumer shall receive services in

application of the standards in good faith and as is commonly accepted.


25

4. Statutory documentation

(a) Provider’s books

The details specified in the books of an Essential Service Provider shall be prima facie evidence

to any matter specified in them, including the identity of the consumer, the size of the

connection and the account status between the consumer and the Essential Service Provider.


26

5. Notifications

(a) Sending rules

Any notification that the Essential Service Provider is required to send to consumers in

accordance with these standards, shall be sent according to the following rules:

(1) The notification shall be sent prominently and in writing by mail or by messenger. The

notification may be sent by any other means (including: computer fax, e-mail, internet, Etc.)

if the consumer consents in advance to receive notification by this means;

(2) Notifications shall be considered to have been received by the consumer 72 hours after

their sending, unless proven otherwise.


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6. Interest

(a) Interest rates

(3) The Essential Service Provider shall charge interest for delay in case of late payments and

shall incur interest for delay in case of late payments, in accordance with the interest for

delay of the Accountant General of the Treasury (hereinafter: “Accountant interest”) that is

published from time to time.

(4) In case of over charged payments, due to a billing error, the Essential Service Provider shall

pay the Accountant General interest.

(5) The Essential Service Provider shall regularly adjust the calculation of debt to the changes in

the accountant interest, regardless of any updates to electricity rates.


28

7. Payment to consumers for violation of standards

(a) Method and duty of payment

(6) An Essential Service Provider that shall violate one or more of the standards shall pay the

consumer for this violation the sum specified for each violated standard within 60 days of

committing the aforementioned violation.

(7) If the Essential Service Provider is late in transferring payment to the customer, the payment

shall incur interest of delay beginning from the first day of the delay in transferring the

payment and until the date of transferring payment to the customer.

(8) Payment to the customer shall be made through settling the account in the customer

consumption or service bill, or in case the sum of the payment is greater than the sum of the

bill owned by the customer to the Essential Service Provider, payment shall be made by

transferring it directly to the aforementioned consumer.


29

7a. Information

(a) The Essential Service Provider shall make available to the public the following information:

(1) The existence of the standards – the rights and duties of the consumer and the provider, in

the electricity bill, once a year;

(2) An annual report of the provider’s activity in the area of public complaints. This information

shall be presented on the provider’s website and at his offices not later than June 1st of each

year;

(3) A national, regional, and administrative area cross section of non-supply in minutes, as well

as a detailed cross section for each line for the most recent year;

(4) The total national accumulated connected load of photovoltaic facilities, as specified in

chapter H section C of the Book of Standards – separately by Domestic rate and general

rate. This information shall be updated once a week, on Tuesday, except when holidays

occur on this day, in which case it shall be publish on the following workday.

(b) Time of information publishing

The information shall be presented on the provider’s website and at his offices, and transferred

to consumer organizations, not later than 60 days from the day of its presentation to approving

parties at the Essential Service Provider or from the day of in which it is required to be published

by law, as the case may be.

(c) Time of information update

The information shall be updated once a year or once a quarter, depending on the Essential

Service Provider’s dates of issuing reports.


30

7b. Call center

(a) Call center

The Essential Service Provider shall have a call center available to his customers where multi-

purpose service is provided in all issues related to consumption and electricity supply.

(b) Call center hours

Call center representatives shall take calls at the following hours:

(1) Human response shall be provided for consumption issues on Sundays – Thursdays from

7:00 to 22:00 and on Fridays from 7:00 to 13:00. On other times a voice response shall allow

actions related to bill payment, standing orders, unified rate meter readings and different

changing products and services;

(2) For issues related to electricity supply 24 hour human response shall be provided

throughout the year.

(c) Response time

Service representatives shall respond to calls to the call center within three minutes.

(d) Call center operation at peak hours

(1) In consumption peak hours, the Essential Service Provider shall make the call center

available to its consumers and provide human response as much as possible and by queue,

including a voice response for relevant information regarding the peak status.

(2) In heavy load states caused by electricity supply interruption, the Essential Service Provider

shall provide voice response specifying the malfunction by region and the estimated time of

resolving the issue if known.

(e) Network reports

Once a year, the company shall report the number and percentage of calls that were not

responded within the time specified in close (c) above and report the number of calls left

without a response.


31

Section B: Ownership of Electrical Equipment

8. Ownership of electrical equipment

(a) Presumption of ownership

Unless otherwise specified in these standards, all electricity facilities installed by the Essential

Service provider are the property of the Essential Service Provider, and the Essential Service

provider is their sole owner.

(b) Consumer participation in costs

Close 8 (a) shall still apply if the consumer participates in the costs of installing or connecting

electricity facility or if the electricity facilities are installed for the purpose of connecting specific

premises or providing electricity supply to a specific consumer.

(c) Additional connections

At any time, subject to the law, the Essential Service Provider may connect premises or other

consumption locations to electricity facilities or use them to serve other consumers, provided

that the electricity supply to existing costumers is not interrupted.

(d) Supply

The Essential Service Provider is required to supply equipment in working order and may choose

the specification of the equipment used and installed by him, subject to the electricity and

security standards specified from time to time by bodies authorized to do so by law.

(e) Maintenance

The Essential Service Provider is responsible for the regular maintenance of electricity facilities

installed by him, provided that it is physically and legally possible for the Essential Service

Provider to conduct the aforementioned maintenance operations.


32

9. Coordinated visit to the consumption location

(a) Coordinating a visit

The Essential Service Provider or the consumer, as the case may be, may coordinate a visit to

the consumption location to obtain services that require a visit to the location according to

these standards, for the purpose of facility maintenance or for any other purpose requiring

entry to the consumption location.

(b) Preventing a coordinated visit

A consumer that prevents a visit to the consumption location after a visit is coordinated, shall

pay a “false visit cost”, as specified in lines 1-3 of Table of Rates 5.4-2, except if the consumer

has given the Essential Service Provider a notification at a reasonable time prior to the

coordinated visit.

(c) Supplier not arriving

If the Essential Service Provider does not arrive at the consumption location at the coordinated

time, the cost of a false visit shall be deducted from the cost of the service provided to the

consumer, as specified in lines 1-3 of Table of Rates 5.4-2, except if the Essential Service

Provider has given the consumer a notification at a reasonable time prior to the coordinated

visit.


33

10. Protecting equipment

(a) Prohibition on operation

Persons unauthorized by the Essential Service Providers shall not connect, remove, modify or

dismantle any electricity facility or other equipment belonging to the Essential Service Provider,

unless they are authorized by the Essential Service Provider in advance and in writing.

(b) Consumer duty

The consumer shall employ reasonable measures to ensure that electricity facilities installed at

the consumption location or on premises owned by him shall not be damaged in any way.

(c) Negligence

The consumer shall not be responsible for any damages to an electricity facility or any other

equipment nor for their lose due to regular use or natural wear.

(d) Benefit

Notwithstanding the above, if the Essential Service Provider finds that any damages to

equipment benefit the consumer, the consumer shall be considered liable for the

aforementioned damages, unless proven otherwise.

(e) Compensation

The consumer shall reimburse the Essential Service Provider for the total damages caused, as

specified in sub-close (c) above, according to the rates specified in chapter 4.4 of the tables of

rates “works on account of others”.


34

11. Modifications to an electricity facility

(a) Prohibition on modification

The consumer may not make any expansion, addition or modification to electricity facilities of

the Essential Service Provider, including adding load or changing the type or quality of the

consumption.

(b) Payment for damages

(1) The consumer shall pay for any damages caused to electricity facility of the Essential Service

Provider due to any action performed by him in violation of closes 10 (a) and 11 (a).

(2) If the action is performed on the consumer’s private electricity facility, the consumer shall

pay for any damages caused to the electricity facilities of the Essential Service Provider,

except if the consumer did not know and could not have known about the damages that his

action may cause.

(c) Supply disconnection

(1) The Essential Service Provider may disconnect the supply of electricity to a consumption

location or premises if the consumer has acted in violation of close 11 (a) and if the

modification to the provider’s facility causes or may cause damages to property or person.

(2) The disconnection of supply in cases where damages to property or person are feared shall

be made without prior notice,

(3) In any case other than that specified in sub-close (2) above, prior notice shall be given seven

days before disconnecting the supply.


35

12. Removing obstacles

(a) Responsibility and removal procedure

(1) An obstacle that interrupts or may interrupt the electricity network (hereinafter: “obstacle”)

shall be removed by the registered consumer or the Essential Service Provider in accordance

with the following rules:

(2) A registered consumer, or the land owner if the registered consumer is not the land owner,

in a consumption location where an obstacle exists, shall be responsible for its removal,

provided that he shall do so not later than 5 work days from the time the existence of the

obstacle is known to him;

(3) Notwithstanding the above, a consumer may apply to the Essential Service Provider within 5

work days with a request to remove the obstacle. The Essential Service Provider shall

indicate the cost of obstacle removal in advance and at a request from the consumer shall

remove the obstacles as soon as possible and not later than 5 work days from the time of

the request. In this case the consumer shall reimburse the provider for the cost of removing

the obstacle;

(4) In case a power cut is required for the purpose of removing the obstacle, the Essential

Service Provider may cut the supply, provided that a prior notice is sent to the consumer at

least 3 days before cutting the power. In cases where the Essential Service Provider is not

granted access to the premises for the purpose of removing the obstacle, he may cut the

supply outside the premises;

(5) The cost of power cuts is specified in lines 11 and 12 of Table of Rates 5.4-2.

(b) Notifying the consumer

(1) An Essential Service Provider that is aware of the existence of an obstacle shall notify the

registered consumer without delay and shall inform him about his duty to remove the

obstacle himself or through the Essential Service Provider, as specified in close 12 (a); in his

notification, the Essential Service Provider shall indicate the cost of the obstacle removal

service.

(2) If the Essential Service Provider notifies the consumer about the obstacle and nothing is

done to remove it, including a request submitted to the Essential Service Provider to remove

the obstacle within 5 work days, or its removal is not completed within 5 days, the provider

shall remove the obstacle and charge the registered consumer for the cost of removal,

provided that the cost of removal was indicated to the consumer by the Essential Service

Provider in advance. In this case, the Essential Service Provider shall coordinate a visit to the

consumption location or premises, as specified in close 9 (a) for the purpose of removing the

obstacle.


36

(c) Obstacles in premises

In case of an obstacle in premises, the holder of the premises shall be considered a registered

consumer for the purpose of this standard.

(d) A removal delay not by fault of the provider

Delays caused by the consumer, land owner and/or a third party because of the need to obtain

authorization, permit, license, etc. as required by law, shall not be taken into account for the

time periods specified in this standard.

(e) Risk of damages to property or person

Notwithstanding the above, in cases where the obstacle or its removal may cause damages to

property or person, the Essential Service Provider shall remove the obstacle immediately and

without prior notice, and charge the consumer for the cost of removing the obstacle.

(f) Cutting supply

In addition to the aforementioned in sub-closes 12 (a) (3) and 12 (e), in cases where the obstacle

or its removal may cause damages to property or person, the Essential Service Provider may cut

the supply without prior notice.


37

Chapter B: Electricity Consumption

Section A: Consumption

13. Determining the amount of electricity consumed

(a) Calculation base

The consumption bill shall be calculated based on the meter reading for the relevant billing

period.

(b) Frequency of meter reading

In order to determine the payment for consumption, the Essential Service Provider shall read

the meter once during the billing period.

(c) Allowing access

The consumer shall allow the Essential Service Provider to access the meter, provided that this

access is made during reasonable hours, according to the circumstances, and after presenting an

identification document.

(d) Determining payment based on an estimate

Notwithstanding the above, the Essential Service Provider may determine the payment for

consumption based on a consumption estimate, as specified in standard 14 (conducting a

consumption estimate), in the following cases:

(1) The meter has been removed or did not register the full consumption of electricity due to a

malfunction or damage;

(2) Electricity has been consumed not through the meter;

(3) The Essential Service Provider did not have access to the meter during reasonable hours and

was unable to read it, for reasons that are out of his control, and provided that the Essential

Service Provider has read the meter at least once during the previous 12 months;

(4) The Essential Service Provider did not read the meter during a specific billing period due to a

voluntary skipping, provided that a voluntary skipping was not instigated in the previous

billing period and that the number of voluntary skippings was not greater than two during

the calendar year. An Essential Service Provider that does not act in accordance with this

close shall compensate the consumer for this breach as specified in Table of Rates 12.1-1.

The compensation for the breach shall be paid to the consumer in addition to the cost

deducted from the fixed payment, as specified in close (j) (1) of this standard;


38

(5) Electricity has been consumed not through the meter at a consumption location of a unique

consumption facility owner.

(e) Reporting duty

The Essential Service Provider shall report to the Authority once per year about the number of

meters that were not read by it during a period of more than 12 consecutive months.

(f) Payment spread

In cases where the consumer is required to pay differences due the issuing of bills based on a

consumption estimate, a payment spread arrangement shall be implemented, as specified in

close 26 (f).

(g) Meter reading by the consumer

A consumer may read his own meter at the dates determined by the Essential Service Provider,

and submit his consumption information by phone or any other means. For the purpose of

determining the amount of electricity consumed, the phone reading by the consumer shall be

considered as a valid meter reading for all intents and purposes. The Essential Service Provider

shall provide the consumer with a reference number for receiving of the reading.

(h) Confirming a consumer meter reading

The Essential Service Provider may confirm the reading made by the consumer with a special

reading. In this case, the amount of electricity consumed shall be determined by the reading of

the Essential Service Provider.

(i) Special meter reading

A consumer may demand a special meter reading from the Essential Service Provider. For this

service, the consumer shall pay the rate specified in line 29 of Table of Rates 5.4-2.

(j) Credit for a voluntary skipping

(1) If the Essential Service Provider did not conduct a meter reading during a specific billing

period due to a voluntary skipping, the consumer shall be credited for the rate paid for a

meter reading, as specified in lines 4-6 of Table of Rates 5.4-2, depending on the type of

meter.

(2) A consumer who is a registered consumer of a number of meters installed at the same

consumption location shall be credited for the rate paid for a meter reading, as specified in

Table of Rates 5.4-2, for each meter for which the fixed payment is paid.

(k) A dispute over the amount determined based on an estimate


39

In case of a dispute over the amount of electricity consumed determined by the method

specified in standard 14 (conducting a consumption estimate), the consumer may appeal to the

Authority’s ombudsman to decide on the matter.

(l) Compensation to the consumer for excess voluntary skipping

In any case of violation of the provision of close (d) (4), the Essential Service Provider shall pay

the consumer the rate specified in Table of Rates 12.1-1.


40

14. Conducting a consumption estimate

(a) The amount of electricity consumed by way an estimate

Determining the amount of electricity consumed by way an estimate shall be conducted based

on the amount of electricity consumed in the specific consumption location or premises in a

different period, for which similar conditions exist to the period for which the estimate is

conduced, or based on a meter reading with a relative adjustment by percentage of meter error

or malfunction.

(b) Method of calculation if no initial reading was conducted

In case an initial meter reading has not been conducted in the consumption location or

premises, and the conditions specified in close 13 (b) are met, the amount of electricity

consumed shall be determined based on the amount of electricity consumed in a similar period,

in similar consumption locations or premises.

(c) Illegal consumption of electricity

In case of illegal consumption of electricity, as specified in standard 16 (illegal consumption of

electricity), the Essential Service Provider may conduct the consumption estimate based also on

records of the consumer’s past consumption in the computer system, the electrical devices at

the consumption location or premises, records of a substitute or control meter, if the conditions

to conduct a consumption estimate as specified in closes 14 (a) and 14 (b) above do not exist.

(d) Base of the estimate

The supplier shall conduct the estimate based on the specified in standard 14 (conducting a

consumption estimate).

(e) Consumption estimate for a unique facility

The Essential Service Provider shall install no more than 25 sample meters for any unique

facilities cluster.

Calculating the consumption of a unique consumption facility shall be made by an estimate

based on the average reading of the sample meters. The Essential Service Provider shall provide

the customer at his request with the meter readings according to which the estimate was made.

Notwithstanding the specified in this close, if a consumption meter has been installed at the

request of the consumer, the consumption to be billed shall be determined by the meter

reading.

(f) Increased estimate

Notwithstanding the specified in previous closes, if a consumer has prevented the Essential

Service Provider from accessing the meter, as specified in standard 13 (c), for a period of more


41

than 12 months, and bills that are based on consumption estimates were issued to the

consumer during this period, the Essential Service Provider may issue the consumer a bill that is

based on a consumption estimate of 150% of the average bills issued the consumer in the

previous 12 months, and provided that the supplier has taken all necessary measures to conduct

the reading, including a written notice regarding the need to conduct the reading and notifying

the consumer about the risk of receiving a consumption bill of 150% - at least one billing period

prior to issuing the increased bill.

For this purpose, the increased consumption estimate shall be considered as a billing error for

which interest, as defined in these standards, is not incurred.


42

15. Testing the accuracy and proper working order of a meter

(a) Frequency of sample tests

The Essential Service Provider shall perform sample tests at least once per year to ascertain the

accuracy of meters, and shall present the findings of his tests to the public.

(b) The consumer’s right to select the method of testing

Consumers are entitled to request that the meter installed at the consumption location shall be

tested by one of the following methods:

(1) By the Essential Service Provider, once per three calendar years and free of charge. If the

consumer requests an additional test at the consumption location within three calendar

years it shall pay for the additional test the rate specified in lines 7-8 of Table of Rates 5.4-2,

unless his request for an test is found to be justified;

(2) By a lab certified tester authorized by the Authority.

(c) Time to conduct the test

Meter testing by an Essential Service Provider, or its removal for the purpose of testing by a

different examiner, shall be made not later than one month after receiving the consumer’s

request.

(d) Testing methods for different meter types

(1) A direct meter shall be tested at two points of the measurement range:

(a) At a low load relating to 10% of the basic current and at a high load relating to 50% of

the basic current with a balanced load;

(b) The single-phase testing load for a three-phase meter shall be with a current of 20% and

100% of the basic current.

(2) A metering system meter shall be tested at two points of the measurement range:

(a) At a low load relating to 10% of the nominal current and at a high load relating to 50%

of the nominal current.

(3) A new mechanical meter to be connected directly (without a current transformer) shall be

considered faulty if the results of the active energy measurement indicate a deviation larger

than specified by the IEC 62053-11 CLASS 2 standard.

(4) A mechanical meter connected directly (without a current transformer) and installed at the

consumer’s facility shall be considered faulty if the results of the active energy

measurement indicate a deviation larger than 3%.


43

(5) A new mechanical meter to be connected through a current transformer shall be considered

faulty if the active energy measurement indicates a deviation larger than specified by the

IEC 62053-11 CLASS 2 standard for low voltage.

(6) A mechanical meter connected through a current transformer and installed at the

consumer’s facility shall be considered faulty if the results of the active energy

measurement indicate a deviation larger than 3% for low voltage.

(7) A new mechanical meter to be connected through a current and voltage transformer shall

be considered faulty if the active energy measurement indicates a deviation larger than

specified by the IEC 62053-11 CLASS 1 standard for high and extra-high voltage.

(8) A mechanical meter connected through a current and voltage transformer and installed at

the consumer’s facility shall be considered faulty if the results of the active energy

measurement indicate a deviation larger than 1.5% for high and extra-high voltage.

(9) A new electronic meter shall be considered faulty if the active energy measurement

indicates a deviation larger than specified by the IEC 62053-21 CLASS 2 standard for low

voltage and the IEC 62053-22 CLASS 0.5s standard for high and extra-high voltage.

(10) An electronic meter installed at the consumer’s facility shall be considered faulty if the

results of the active energy measurement indicate a deviation larger than 3% for low voltage

and a deviation larger than 1% for high and extra-high voltage.

(11) A new electronic meter shall be considered faulty if the reactive energy measurement

indicates a deviation larger than specified by the IEC 62053-23 CLASS 3 standard for low

voltage and the IEC CLASS 2 standard for high and extra-high voltage.

(12) An electronic meter installed at the consumer’s facility shall be considered faulty if the

results of the reactive energy measurement indicate a deviation larger than 4% for low

voltage and a deviation larger than 3% for high and extra-high voltage.

(13) An original meter that is found to be faulty shall be replaced by the Essential Service

Provider with another meter, whether if it was tested by it or by a different authorized

tester. The Essential Service Provider shall be responsible to keep the original meter for a

period of not less than six months from the time of its replacement.

(14) If a meter is found to be faulty, resulting in an energy measurement showing a deviation

larger than 5%, the Essential Service Provider shall adjust the consumption bills in

accordance with standard 14 (conducting a consumption estimate) and standard 26 (final

billing).

(e) The supplier’s right to conduct a test at the consumption location


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The Essential Service Provider may conduct a meter test at the consumption location after

coordinating in advance with the consumer, as specified in standard 9 (coordinated visit to the

consumption location).

(f) Testing the meter at the supplier’s lab

(1) The Essential Service Provider may remove a meter and test it at his lab, and shall be

responsible in this case to install a replacement meter at the consumption location.

(2) If the test indicates that the meter is in proper working order, the consumer shall bear the

cost of the test, including the cost of removing and re-installing the meter, as specified in

lines 7-9 of Table of Rates 5.4-2, depending on the type of meter.

(3) If the test indicates that the meter is faulty, the consumer shall be exempt from any charges,

except in the case specified in standard 16 (illegal consumption of electricity). The meter

test report shall be sent to the consumer within seven days from the date of conducting the

test.

(g) Meter testing by a certified tester other than the supplier

If the meter is tested by a different certified tester:

(1) The Essential Service Provider shall be responsible, at the request of the certified tester, to

remove the meter and deliver it to the tester chosen by the consumer. The Essential Service

Provider shall install a replacement meter at the consumption location; when the test is

complete, the certified tester shall return the meter to the Essential Service Provider;

(2) The consumer shall bear the cost of testing by a certified tester. Nevertheless, if the test

shows that the meter is faulty, the consumer shall be credited by the Essential Service

Provider for a sum not larger than the Essential Service Provider’s testing rate approved by

the Authority, and shall not be charged for the cost of the meter installed on his premises. In

any case, the consumer shall bear the cost of the meter removal and installation as specified

in line 9 of Table of Rates 5.4-2;

(3) The consumer may request an installation of the meter that was removed and tested by the

certified tester. The consumer shall pay for the installation as specified in line 9 of Table of

Rates 5.4-2. The Essential Service Provider shall be entitled to test this meter after its

installation.

(h) Providing the consumer with prior notice before removing a meter

(1) If a meter is intended for removal from the consumption location, the Essential Service

Provider shall notify the consumer in writing 15 days prior to its removal. The notification

shall include information regarding the reason for removal and the estimated time of

removal.


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(2)

(a) At the time of removal, the consumer shall be allowed to record the last meter reading

and the first meter reading of the replacement meter.

(b) The notification to the consumer regarding the replacement, the record of the last

meter reading for the removed meter and the first meter reading for the replacement

meter shall be submitted to the consumer in writing by the Essential Service Provider at

the time of removal.

(3) If a meter is removed and found to have been illegally tampered with or to be faulty, the

Essential Service Provider shall keep it for the purpose of litigation for a period of at least six

months from the date of its removal.


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16. illegal consumption of electricity

(a) Sanctions permitted to the supplier

If electricity supplied by the Essential Service Provider is illegally consumed, the Essential Service

Provider may, without derogating from any other legal remedy, take any of the following

measures against the consumer:

(1) Disconnect the supply of electricity or reduce the current to the premises or consumption

location. If, after providing a prior notice as required by law, the Essential Service Provider is

not given access to the premises or consumption location for the purpose of disconnecting

the electricity supply on all it entails, the Essential Service Provider shall be entitled to carry

out the disconnection at a location outside the premises or consumption location, or at the

suppliers network;

(2) Remove or relocate the meter to a location determined by the Essential Service Provider

and at the expense of the consumer;

(3) Collect from the consumer the payments specified in closes 10 (c), 16 (d), and standard 35

(c) (2) (payments);

(4) Install a new meter at the expense of the consumer;

(5) Remove the connection as specified in close (c) of standard 40.

(b) Schedule for implementing sanctions and the duties of the supplier regarding them

(1) An Essential Service Provider may take the measures specified in sub-closes 16 (a) (2) and

(4) above immediately, and invite the consumer to the offices of the Essential Service

Provider to clarify the reasons for the illegal consumption.

(2) The Essential Service Provider shall notify the consumer in writing seven days prior to taking

the measures specified in sub-closes 16 (a) (1) and (3).

(3) The Essential Service Provider shall allow the consumer, at his request, to test the meter in

accordance with close 15 (g).

(c) Duration of illegal consumption

The period of illegal consumption shall be counted from the day illegal consumption began and

until day the Essential Service Provider was made aware of it.

(d) Calculating the amount of illegal consumption

The amount of electricity consumed illegally at the premises or consumption location during the

period of illegal consumption shall be determined as specified in standard 14 (conducting a

consumption estimate). The Essential Service Provider shall calculate the difference between


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the determined consumption and the actual payments during the period of illegal consumption

according to the valid electricity rates at the time of issuing the adjusted bill. The Essential

Service Provider may allow the consumer to spread the payment, as specified in close 26 (f).

(e) Additional payment for illegal consumption

In addition to the payments specified in sub-close 16 (a) (3) above for illegal use, the consumer

shall pay the Essential Service Provider for the cost of billing for illegal use, as specified in line 10

of Table of Rates 5.4-2.


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17. Termination of consumption services by the consumer

(a) A registered consumer wishing to be disconnected

A registered consumer who wishes to be disconnected from the electricity network shall inform

the Essential Service Provider and pay the cost of disconnection, in accordance with the location

of the disconnection as specified in lines 11 and 12 of Table of Rates 5.2-2.

(b) Time to disconnection

The Essential Service Provider shall carry out the disconnection within 30 days from the day of

receiving the request at his offices.

(c) Duty of the consumer

The consumer is required to allow the Essential Service Provider to perform all necessary actions

for the disconnection of electricity consumption.

(d) Losing the status of “registered consumer”

A registered consumer shall no longer be considered as a registered consumer for the

consumption location for which the aforementioned disconnection has been requested, starting

from the day of disconnection and not later than 30 days after receiving his request at the

company’s offices, provided that it has complied with the provision specified in close 17 (c).

(e) Liability for payments for electricity services and consumption

The registered consumer shall remain liable for any payments for electricity services provided by

the Essential Service Provider, including payments for electricity consumption, until it complies

with the provisions specified in closes 17 (a) and 17 (c).

(f) A disconnected consumer wishing to reconnect

A consumer that was disconnected from the electricity network in accordance with this

standard and later wishes to reconnect to the electricity network shall pay the Essential Service

Provider a reconnection fee according to the location of the disconnection, as specified in lines

11 and 12 of Table of Rates 5.4-2.

(g) Request to transfer the right to receive electricity services

A consumer wishing to transfer his right to receive electricity services shall act in accordance

with standard 19 (changing consumers)

(h) Confirmation of use or non-use of electricity


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A consumer may request a confirmation of use or non-use of electricity at a premises or

consumption location from the Essential Service Provider. The consumer shall pay for the issuing

of this confirmation the rate specified in line 28 of Table of Rates 5.4-2.


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18. Registering a new consumer

(a) Request to receive electricity supply at a premises that is not a consumption location

(1) Any person wishing to receive electricity supply at a premises that is not a consumption

location shall register as a consumer with his full name and idea number, phone number

and address for receiving notifications, and shall pay the Essential Service Provider for the

cost of arrangement and registration, as specified in lines 13 and 14 of Table of Rates 5.4-2,

subject to fulfilling all his legal obligations.

(2) If the new consumer is a corporation, its corporation number shall be added to the

aforementioned, along with a confirmation by an accountant or an attorney specifying the

authorized signatories of the corporation.

(3) At the time of the application to the Essential Service Provider and at the time of registering

the new consumer, the Essential Service Provider shall provide the applicant with the

number of the new supply contract as confirmation.

(b) Confirmation of registration

The Essential Service Provider shall provide the consumer with a written confirmation within 15

days from the date of registering the consumer at the company’s offices, including a

specification of his rights and obligations as a registered consumer. The following information

shall be included:

a. Type of meter installed at the location;

b. Eligibility for a meter testing at the consumption location, as specified in standard 15 (b)

(1).

(c) Liability for payment for electricity supplied to a premises

Any person consuming electricity supplied by the Essential Service Provider to a premises shall

be liable for payment for the electricity supply to the premises, and the burden of adducing

evidence regarding his consumption shall be with him.

(d) Choosing a meter

A consumer may choose between a single-phase meter, a three-phase meter, a prepaid meter

or a Load and Time Rate. The Essential Service Provider shall notify the consumer regarding the

amount of the fixed payment for each possible choice of meters, as specified in Table of Rates

5.4-1.


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19. Changing consumers

(a) Registering or transferring the right to receive electricity services

(1) The Essential Service Provider shall transfer the right to receive electricity services at the

consumption location and issue a final bill following a request by the registered consumer

(hereinafter: “the transferring consumer”), provided that a new consumer is registered to

receive electricity services at the consumption location (hereinafter: “the new consumer”).

Alternatively, the Essential Service Provider shall transfer the right to receive electricity

services at the consumption location and issue a final bill for the transferring consumer

following a request by the new consumer. The Essential Service Provider shall provide the

new consumer with a written confirmation of registration, including a specification of his

rights and obligations as a registered consumer, within 15 days.

(2) In order to fulfill the request, the Essential Service Provider may require the presentation of

a contract or a note confirming the details of the request, and shall specify the reference

number to applicant.

(3) If a final bill is not issued to a transferring consumer because a new consumer has not been

registered, the Essential Service Provider shall inform the transferring consumer about his

right to request a termination of electricity services, as specified in standard 17 (termination

of consumption services by the consumer).

(b) Requested details

(1) In any case of transfer of rights, as specified in close 19 (a), the full name, identification

number, phone number and address for receiving notifications of the new consumer shall

be specified.

(2) If the new consumer is a corporation, its corporation number shall be added to the

aforementioned, along with a confirmation by an accountant or an attorney specifying the

authorized signatories of the corporation.

(c) Liability for payment until the date of submitting the request

The registered consumer shall remain liable for any payments for electricity services provided by

the Essential Service Provider at the consumption location, until a request is submitted, as

specified in close 19 (a).

(d) Consolidation of debts

If a consumer remains in debt to the Essential Service Provider in accordance with these

standards for a premises of consumption location in which it has consumed electricity, the

Essential Service Provider shall be entitled to include his debt in a different consumption bill for


52

the same consumer, and these standards shall apply to this different bill as if the debt was

incurred at the consumption locations to which the different bill refers.

(e) Cost of the change

The new consumer shall pay the Essential Service Provider for the cost of implementing a

change of consumers (arrangement and registration cost), as specified in lines 13 and 14 of

Table of Rates 5.4-2.

(f) Request for disconnection

A consumer who wishes to be disconnected from the electricity network shall act in accordance

with the provisions specified in standard 17 (termination of consumption services by the

consumer).

(g) Billing an LTR meter or PPM by a unified rate

If a prepaid meter or a LTR meter is installed at the location, as specified in these standards, and

the conditions for their use at the consumption location are no longer met, the meter shall

remain installed at the location but the registered consumer may apply to the Essential Service

Provider to receive regular bills by reading and in accordance with the unified rates.


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20. Prepaid meters (PPM)

(a) Eligibility for installation of a prepaid meter

A low voltage consumer shall be entitle to have a prepaid meter (hereinafter: “PPM”) installed

at a consumption location registered to his name, under the following conditions:

(1) The Essential Service Provider shall issue an information pamphlet with detailed information

regarding prepaid meters. The information pamphlet shall be issued for each new consumer

registered at the consumption location, as specified in standards 18 and 19 and sent in

writing not later than 7 days from the date of registration at the supplier’s offices;

(2) A consumer shall submit his request to the Essential Service Provider in writing and specify

his request to install a prepaid meter at a consumption location registered to his name;

(3) The installed meter shall allow reading consumption information;

(4) The Essential Service Provider shall take the necessary measures required for the change to

a prepaid meter within 3 months from the day of registering the consumer’s request at the

company’s offices, and subject to the existing inventory of meters. If a suitable meter in

unavailable, the supplier may extend the processing period for a duration of up to 15

months;

(5) A consumer in whose consumption location a prepaid meter was installed shall continue to

be billed for electricity according to the rate by which he was billed prior to the installation

of the prepaid meter;

(6) The change to a prepaid meter shall be for a minimum period of one year and shall be free

of charge. At the end of the year, the consumer may request an installation of a low voltage

meter allowing reading and billing, provided that the consumer bears the cost of the meter

removal and installation, as specified in line 9 of Table of Rates 5.4-2;

(7) The Essential Service Provider shall carry out the request of the consumer within 3 months

from the day of registering the consumer’s request at the company’s offices.


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Section B: Bills and Payments

21. Payment obligation

(a) Rates

The consumer shall pay the Essential Service Provider for services provided to him by the

Essential Service Provider according to the rates specified by the Authority. If the rate applying

to the consumer is changed for reasons specified in these standards, the supplier shall notify the

consumer in writing not later than 15 days before the new rate is applied, specifying the date of

applying the new rate and the reason for the change. For any delay in applying a Centralized

Sale Rate, the Essential Service Provider shall pay for the breach value, as specified in Table of

Rates 12.1-1. If the Essential Service Provider does not notify the consumer about the

application of a new rate within the prescribed time, the change in the rate shall take place on

the next month following the notification, provided that the notification was given to the

consumer 15 days prior to the actual application of the rate.

(b) Fixed payment

The consumer shall be paid a fixed payment as defined in standard 1 (definitions) even if he

does not actually consume electricity.

(c) Value Added Tax

Value Added Tax shall be added to any payment required by the consumer according to these

standards in the rate prescribed by law.

(d) Interest for delay

The consumer shall pay the Essential Service Provider interest for delay, as defined in standard 6

(interest), for any delay in payment of a consumption bill or a service bill and for handling cost,

as specified in standard 24 (payment dates).

(e) Consolidating service bills and consumption bills and the method for collecting service bills

The Essential Service Provider may not include a request for payment due to a service bill in a

consumption bill, unless the consumer has voluntarily given his written consent in advance. Any

debt due to a service bill shall be collected in accordance with standard 24 (payment dates).

(f) Offset and deduction

The consumer may not offset or deduct any amount from a bill, unless the Essential Service

Provider has given his written consent in advance.

(g) Outstanding liabilities


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In cases where the registered consumer has not paid his bill by its due date, or a check or any

other encumbrance provided by the consumer for the payment of a bill has been rejected, the

Essential Service Provider shall be entitled to disconnect the consumer’s electricity supply, limit

the current or install a PPM, after 7 days from the date of sending a reminder to pay,

notification prior to disconnection.

(h) Including a consumption debt in a different consumption bill

In cases where a consumer registered in a number of consumption locations has not paid his bill

by its due date in one of the consumption locations, or a check or any other encumbrance

provided by the consumer for the payment of a bill has been rejected, the Essential Service

Provider shall be entitled to include his debt in a different consumption bill for the same

consumer, and these standards shall apply to this different bill as if the debt was incurred at the

consumption locations to which the different bill refers.


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22. Bill delivery

(a) Frequency and dates of bill delivery

The Essential Service Provider shall deliver a consumption bill to a consumer registered in the bi-

monthly consumption system once every two months for the previous two months. The

Essential Service Provider shall deliver a consumption bill to a consumer registered in the

monthly consumption system once a month for the previous month. The Essential Service

Provider shall be entitled to deliver a consumption report to the consumer for a shorter billing

period.

A service bill shall be delivered to consumers at the dates specified in standard 24 (payment

dates).

(b) Address for delivery of bills and method of payment

(1) Bills shall be delivered to the address provided by the consumer for receiving mail.

(2) The consumer may change his address at any time by notifying the Essential Service

Provider in writing or by phone and receiving a reference number.

(3) A bill shall be considered to have been delivered to the consumer if it was sent by mail or by

courier. A bill shall be considered to have been delivered if it was sent by any other means

(including computer fax, e-mail, internet, etc.), provided that consumer had given his

written consent in advance, in accordance with the information submitted by the consumer

to the Essential Service Provider.

(4) Payment of bills shall be made in accordance with the provisions of close 25 (a).

(c) Advance payment bills based on an estimate

Following a request from a bi-monthly consumer, the Essential Service Provider shall issue

monthly advance payment bills based on an estimate in accordance with the previous

consumption bill.

(d) Delivery to a special address

A consumer may request a one-time delivery of bills to a special address provided by him. For

this service the consumer shall pay the Essential Service Provider the rate specified in lines 22a –

22c of Table of Rates 5.4-2.

(e) Concentrated report

(1) The Essential Service Provider shall allow a consumer with more than one meter registered

to his name who pays through a standing order to receive, upon request, a report regarding


57

all meters for which payment for electricity consumption is currently due. This concentrated

report shall be provided to the consumer for no additional charge.

(2) Prior to receiving this service, the consumer shall provide the supplier with a written list of

all meters registered to his name and notify him in writing about the address to which this

report shall be sent by the supplier.

(f) Access to digital information

The Essential Service Provider shall allow the consumer specified in sub-close (e) above or his

legal representatives, to withdraw concentrated full detailed information regarding all of the

consumer’s accounts through a digital media. This information shall be provided in a text file

format, in accordance with a standard specification that would be given to the customer by the

Essential Service Provider to allow the consumer to read the file. The consumer shall adjust his

information systems to allow reading the information in accordance with the aforementioned

specification.


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23. Content of the bill

(a) Format of the bill

(1) bills shall be drafted and phrased in such a way as to allow the average person to read and

understand the essence of the charges and the way they are calculated, and shall specify,

among others, the payments and debts owed by the consumer for services rendered by the

Essential Service Provider, the type of services, the established rates for the services, the

amount of electricity consumed, the billing period, the method for determining

consumption and the options for payment by installments, if available. Bills shall specify all

the services provided under the fixed payment and their rates.

(2) Bills shall also include the following details:

(a) Date of issuing the bills;

(b) Last due date;

(c) Date of previous reading and date of last reading;

(d) Last date for the validity of the bill – as specified in close 24 (c);

(e) For consumers who ordered a connection in 1996 or later and for consumers who

ordered a connection increase in 1999 or later – the size of the connection , as specified

in the standard for network component;

(f) For consumers who ordered a temporary connection in 1999 or later – the connection

status (permanent, temporary);

(g) In case of a bill amendment due to a billing error, as defined in standard 26 (final bill) –

details of the amendment, including the consumption amount billed and its rates

accordingly. These details shall be emphasized in the bill;

(h) Compensation of the consumer for a breach of standards, through direct payment to

the consumer and/or through an overall settling of the consumption account or the

service account of the consumer, as specified in sub-close 7 (a) (3);

(i) If the registered consumer is entitled to a reduced payment under the provision of close

31a of the Law, the Essential Service Provider shall indicate this in the consumption bill,

specifying the method of drafting the bill in accordance with the reduced payment rate

prescribed by law and in accordance with the provisions specified in close 30(g).

(b) Bills for Load and Time Rate consumers

Without derogating from the above, bills for Load and Time Rate consumers shall also include

the following information:


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(1) Periodic reading dates between readings, including the number of days in each period;

(2) For every demand hour cluster, the previous and current meter reading, periodic

consumption, price and total;

(3) Total consumption, total payment;

(4) In case of changes to rates or demand hour clusters, as specified in sub-closes (2) and (2)

above, each change shall be specified separately by date of the change;

(5) Consumption efficiency coefficient.

(c) Attachments

Once per year, in March – April, the Essential Service Provider shall deliver a notification to the

consumer, specifying the total annual charges incurred by him in the calendar year preceding

the issuing of the notification, including any outstanding payments that were not settled at the

time of delivering the notification. A separate emphasized line in the notification shall be

dedicated to outstanding payments by the consumer.


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24. Payment dates

(a) Last due date

Consumers shall pay any bill delivered to them not later than the date specified in the bill as

“last due date”.

(b) Consumption bills and service bills

The following rules shall apply to consumption bills as well as service bills:

(1) The last due date of a consumption bill shall be at least 11 days from the date of issue in

case of a monthly bill and 14 days from the date of issue in case of a bi-monthly. The due

date of a service rendered bill shall be 14 dates from the date of issue. Consumers mat pay

the bill before the last due date without incurring interest;

(2) If at least 7 days have passed since the last due date and the consumer has not yet paid his

bill, the Essential Service Provider shall send the consumer a payment reminder –

notification prior to disconnection due to debt. For this action, the consumer shall bear the

cost of handling, as specified in line 15 of Table of Rates 5.4-2. The Essential Service Provider

shall specify in the reminder notification, the means and costs, as specified in standard 20

(prepaid meters) and in sub-close 24 (b) (4) above;

(3) Outstanding bills shall carry interest for delay, as defined in standard 6 (interest), from the

last due date and until they are paid;

(4) After 7 days from the date of issuing the payment reminder – notification prior to

disconnection, as specified in sub-close 24 (b) (2), the Essential Service Provider shall be

entitled to disconnect the supply of electricity to the consumption location, limit the current

or install a prepaid meter at the consumption location, as specified in these standards. For

these actions, excluding the installation of a prepaid meter, the Essential Service Provider

shall bill the consumer for the cost specified in line 11 of Table of Rates 5.4-2.

(c) Bills for services not yet rendered

The following rules shall apply to bills for services not yet rendered:

(1) The last due date for this bill shall be at least 30 days from the date of issue and the

consumer shall be able to pay the bill until the last due date, without linkage or interest;

(2) If the bill is not paid by the last due date, the validity of the bill shall expire;

(3) The Essential Service Provider shall not be under obligation to conduct the ordered work

until the aforementioned bill is paid;


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(4) At the request of the consumer, the Essential Service Provider shall issue a new bill in

accordance with the valid rate on the date of issue;

(5) The content of this standard shall be specified on the bill.

(d) Service in parts

For any service rendered in parts, the consumer shall pay installments in accordance with the

progress of the work, and in accordance with the provisions specified in close 24 (b) for each

part of the service rendered, and in accordance with the provisions specified in close 24 (c) for

each part not yet rendered.


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25. Method of payment

(a) Method of bill payment

Payment of bills shall be made in one of the following ways, chosen by the consumer:

(1) At the offices of the Essential Service Provider;

(2) With a standing order from any commercial bank under the supervision of the Bank of Israel

(hereinafter: “commercial bank”). The consumer may choose one of the following dates for

the payment: 2nd of the month, 10th of the month, 20th of the month or 28th of the month;

If the consumer does not choose a payment date, his account shall be billed through the

standing order on the 10th of each relevant month;

(3) At any commercial bank or through the Postal Bank;

(4) Using a credit card. The Essential Service Provider shall specify a phone number and an

internet address (for electricity consumption bills only) on the bill, through which payment

can be made, and the maximum amount that can be paid. The consumer shall receive an

online confirmation from the Essential Service Provider for payment by credit card through

the internet (for electricity consumption bills only) or by phone and for the approval of the

credit card company;

(5) By any other method or at any other location publicly announced by the Essential Service

Provider, including through the internet.

(b) Rejected payments

(1) If a payment by the consumer is rejected, the provisions of closes 24 (b) and 24 (c),

depending on the type of bill for which the debt is incurred, shall apply to the bill, with

additional costs for payment rejection, depending on the circumstances and in accordance

with lines 17-20 of Table of Rates 5.4-2.

(2) Without derogating from the above, if the consumer’s payment by a specific method of

payment is rejected, the Essential Service Provider shall be entitled to request payment in

cash or by authorized credit card transaction.

(c) Collection at the consumption location

At the request of the consumer, and in coordination with him, as specified in standard 9

(coordinated visit to the consumption location), the Essential Service Provider shall come to the

consumption location to collect a debt. The consumer shall pay the Essential Service Provider for

this service as specified in line 21 of Table of Rates 5.4-2.

(d) Payment on the arrival of the supplier for disconnection or meter reading


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If the Essential Service Provider arrives at the consumption location or premises for the purpose

of disconnection or meter reading, and is asked by the consumer to collect the debt for location,

the consumer shall pay the Essential Service Provider for this service as specified in line 21 of


(e) Payment by post-dated cheque

The Essential Service Provider may accept payment by a post-dated cheque if it finds the

circumstances justify this method of payment. In this case, the consumer shall be bill for the

cost specified in line 27 of Table of Rates 5.4-2 and in accordance with the provisions of sub-

close 24 (b) (3).

(f) Request to return a post-dated cheque prior to its due date

If the consumer requests the return of the post-dated cheque provided to the Essential Service

Provider prior to its due date, he shall be billed for the amount specified in line 27 of Table of

Rates 5.4-2.

(g) Paid bill as evidence for the settling of debt

A paid bill shall be evidence for the settling of the debt due to the bill by the consumer, except

in cases where the method of payment used by the consumer was rejected (for example:

cheque, unauthorized credit card transaction, etc,).


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26. Final bill

(a) Bill amendment

(1) Bills shall be final and the Essential Service Provider shall charge the consumer for relevant

period or service as specified in the bill and only as specified in the bill.

(2) Without derogating from the general provision of sub-close (1) above, the Essential Service

Provider may amend a bill delivered to the consumer in one of the following cases:

(a) A bill error is discovered;

(b) New facts are revealed that indicate an illegal consumption.

(b) Debit and credit for billing errors

(1) If an error is discovered in a bill paid by the consumer prior to the due date:

(a) in case of a billing error where the erroneous payment is lower than the correct

payment due for actual consumption, the consumer shall be billed for the full

consumption difference amount since the date of the error, in accordance with the valid

rates at a time of consumption, provided that the retroactive billing period does not

extended to more than 4 years before the discovery of the error. If the billing error is

due to an action made by the supplier, the retroactive billing shall be limited to 2 years

before the date of discovering the error;

(b) In case of a billing error where the erroneous payment is higher than the correct

payment due for actual consumption, the consumer shall be retroactively credited for

the full consumption difference amount since the date of the error and up to 7 years.

The bill shall be made in accordance to the valid rates at the time of consumption plus

the Accountant General Interest

(2) If an error is discovered in a bill not yet paid by the consumer prior to the due date, the

Essential Service Provider shall issue an amended bill in accordance with the valid rates at

the time of consumption.

(3) If an error is discovered in a bill not yet paid by the consumer after to the due date, the

Essential Service Provider shall issue an amended bill in accordance with the valid rates at

the time of consumption. Late payment shall be handled in this bill in accordance with the

provisions specified in close 24 (b).

(c) illegal consumption of electricity

In case of illegal consumption of electricity, the consumer shall be billed for the full difference

amount, in accordance with the provisions specified in standard 16 (illegal consumption of

electricity).


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(d) Amended bills

When the Essential Service Provider makes amendments to a bill, it shall deliver the amended

bill to the consumer and the provisions of standard 24 (payment dates) shall apply to amended

bill, depending on the type of the bill.

(e) Date for delivery of an amended bill

(1) The date for issuing an amended bill, as specified in close 26 (d) above, shall not be later

than 14 months from the date of discovering the error or, alternatively, from the date of

discovering the illegal consumption. If an amended bill is not issued within the

aforementioned period, the Essential Service Provider shall compensate the consumer by

the amount specified in Table of Rates 12.1-1 (payment for violation of standards).

(2) Notwithstanding the specified in sub-close (1) above, in case of an illegal consumption with

LRT meters and repeating illegal use, the amended bill shall be delivered within a maximum

period of 10 months.

(f) Payment spread

(1) In cases of error, as specified in sub-close 26 (b) (1) (a) above, the Essential Service Provider

shall spread the payment over a period equal to the period for which the debt was incurred

without interest.

(2) In other cases, the Essential Service Provider may allow the consumer to spread the

payment with interest in accordance with standard 6 (interest).


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27. Billing errors

(a) Payment obligation

Consumers shall pay any bills delivered to them in full and on time.

(b) Consumer error claim

Consumers believing a bill contains an error shall contact the Essential Service Provider’s call

center, prior to the due date, and specify their claims regarding the accuracy of the bill.

(c) Exemption from payment of an erroneous bill

When a consumer contacts an Essential Service Provider’s call center, the Essential Service

Provider shall provide his immediate answer. Consumers shall be exempt from paying a bill in

which an error is discovered, if, prior to the due date, they are notified by the Essential Service

Provider’s call center that an amended bill is to be delivered to them.

(d) Further examination

The Essential Service Provider may request that the consumer appeal to the supplier in writing,

within 3 work days, if it finds that the issue requires further examination.

(e) Written appeals by consumers

(1) A consumer who has submitted a written appeal to the Essential Service Provider, at the

request of the supplier, shall be entitled to postpone the due date of the bill by a number of

days equal to the number of handling days of his appeal until receiving the reply of the

Essential Service Provider, or to pay it on its due date.

(2) If the consumer has paid the bill and his appeal has been accepted, the Essential Service

Provider shall reimburse the consumer for the sum of any excess payment, based on the

actual rate paid by the consumer plus interest from the date of payment, in accordance with

the provisions of sub-close 26 (b) (1) (b).

(3) If the consumer has postponed the payment of the bill and his appeal has been rejected, he

shall pay the amount of the bill plus interest, as specified in standard 6 (interest) from the

last due date.

(f) Reply to appeals by consumers

A consumer who has submitted a written appeal to the Essential Service Provider shall receive a

reply in writing from the Essential Service Provider, as specified in standard 33 (handling written

complaints by consumers).

(g) Results of the examination


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(1) If the Essential Service Provider finds there is an error in the bill, he shall deliver an

amended bill or notify the consumer that the error will be amended on the next bill.

(2) If the Essential Service Provider does not find an error in the bill, he shall notify the

consumer about the rejection of his appeal and specify the reasons for the rejection.


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28. Detailed billing information

(a) The right to receive information

(1) Consumers may request detailed billing information from the Essential Service Provider for a

period not greater than 7 years from the date of the request.

(2) The detailed billing information shall include all charges and payments for services issued to

the consumer up to the date of the request, and shall specify whether any outstanding

payments exist.

(b) Costs

(1) Consumers shall pay the Essential Service Provider for the cost of issuing a detailed billing

information report, as specified in line 22b of Table of Rates 5.4-2.

(2) Payment for the first copy of the detailed information report shall be as specified in line 22a

of Table of Rates 5.4-2, and payment for any additional copy shall be as specified in line 22c


(c) Debt due to a meter malfunction

The Essential Service Provider shall inform the consumer that receiving the aforementioned

detailed information shall not be taken as evidence that no debt exists due to a meter

malfunction, subject to standards 16 (illegal consumption of electricity) and 26 (final bill).


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Section C: Electricity Consumption Rates

29. Definitions

Canceled - integrated with chapter A.


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30. Method of billing

For the purpose of this standard, the authorized institute – the Authority for the rights of Holocaust

survivors at the Ministry of Finance and the National Insurance Institute.

(a) Rates

(1) The Authority shall determine the rates and the method of their update.

(2) The Essential Service Provider shall bill the consumer for consumption in accordance with

the electricity rate that applies to him plus a fixed payment, as determined by the Authority.

(b) Value Added Tax

In addition to the specified in close 30 (a) above, the Essential Service Provider shall collect

Value Added Tax from the consumer in the rate prescribed by law, as specified in close 21 (c).

(c) Changes to rates within the billing period

If a rate is changed within a billing period, consumption shall be calculated by the previous rate

for the days between the last reading and the date of change, in accordance with the average

daily consumption for the billing period, and the remaining consumption shall be calculated by

the new rate.

(d) Rounding up the bill

The sums specified in bills shall be rounded up to whole Agorot, as follows:

(1) If the specified sum of Agorot is 0.49 Agorot or less – it shall not be counted;

(2) If the specified sum of Agorot is 0.50 Agorot or more – it shall be counted as a whole Agora

and added to the sum.

(e) Fixed payment

The consumer shall be charged with a fixed payment, as specified in close 21 (b).

(f) Consumption bill paid by a standing order

Consumers who pay consumption bills by a bank standing order (not including a credit card

standing order), shall be credited in each bill for the sum specified in line 23 of Table of Rates

5.4-2, for collection costs saved to the Essential Service Provider.

(g) Reduced payment for eligible consumers

A registered consumer meeting the conditions for eligibility for reduced payment, as specified in

the provisions of close 31a of the Law, shall be bill by the Essential Service Provider for

consumption as follows:


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(1) The registered consumer shall be entitled to a reduction of payment by a notice from the

Authorized Institute, from the date of the receiving the notice at the offices of the Essential

Service Provider;

(2) Eligibility for reduced payment shall be given for a single consumption location only, used as

the residence of the registered consumer, and shall be registered to the name of the

registered consumer only;

(3) If the beginning date for the eligibility, specified in the notice of the Authorized Institute, is

earlier than the date of the notice, the Essential Service Provider shall credit the registered

consumer’s consumption bill from the date of eligibility, and reimburse the consumer for

the difference due to the reduction of payment plus the Accountant General Interest;

(4) If the registered consumer is a consumer paying for electricity consumption through a

prepaid meter, the Essential Service Provider shall be entitled to settle with the consumer

for his eligibility for a reduced payment retroactively one every few months, provided that

the Essential Service Provider shall reimburse the consumer for the difference due to the

reduction of payment plus the Accountant General Interest.

(h) Reduced payment for eligible sub-consumers

In case of sub-consumers in a consumption location registered to a consumer who are entitled

to a reduced payment, as specified in the provisions of close 31a of the Law, and who have a

meter installed to register their domestic electricity consumption, and their consumption as

measured by the meter is the basis for their electricity bills (in this close: “eligible sub-

consumer”), the following arrangement shall apply:

(1) The Essential Service Provider shall credit the registered consumer in accordance with the

accumulated reduced payment rate for the consumption of eligible sub-consumers at the

consumption location and according to the meters of the sub-consumers;

(2) The registered consumer shall credit each of the eligible sub-consumers for the full amount

transferred to him by the Essential Service Provider for these sub-consumers;

(3) The registered consumer shall inform the offices of the Essential Service Provider at the

region of the consumption location regarding any change to the list of eligible sub-

consumers on his premises, immediate with the termination of the eligibility;

(4) Without derogating from the above, once every billing period, the registered consumer shall

submit to the offices of the Essential Service Provider at the region of the consumption

location a statement signed by him and confirmed by a lawyer, specifying the number of

eligible sub-consumers residing at the consumption location, their I.D. numbers, the total

eligible consumption by eligible sub-consumers, in accordance with the registered

consumer’s calculation prescribed by law, and his irrevocable undertaking to immediately


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transfer the amount of reduced payment received by him to the eligible sub-consumers at

the consumption location;

(5) The Essential Service Provider shall act in accordance with standard 30 (h) (1) only after

receiving the aforementioned statement at the its offices, as specified in standard 30 (h) (3)

and shall act on the matter with the relevant parties;

(6) If the beginning date for the eligibility, specified in the notice of the Authorized Institute, is

earlier than the date of this standard coming into force, the Essential Service Provider shall

credit the registered consumer’s consumption bill from the date of eligibility, and subject to

closes 30 (h) (3) and 30 (h) (4) above, and reimburse the registered consumer for the

difference due to the reduction of payment for eligible sub-consumers plus the Accountant

General Interest.


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31. Load and Time Rate (LTR)

(a) Consumers billed by Load and Time Rate

(1) The Essential Service Provider shall bill the following consumers for consumption by a Load

and Time Rate:

(a) Extra-high voltage consumers;

(b) High voltage consumers;

(c) Consumers connected with a connection of 3 X 200 ampere and above;

(d) Low voltage consumers whose last annual consumption (from 1 January until 31

December) exceeds 100,000 kilowatt-hour; the supplier shall complete his preparations

to switch consumers to a Load and Time Rate by 31 March each year;

(e) From 1 April 2012, the number of kilowatt-hour specified in sub-close (1) (d) above shall

be 40,000;

(f) The date of switching a new consumer to Load and Time Rate shall be 1 April of each

year. This date shall also apply to consumers requesting billing by a Unified Rate, as

specified in sub-close (2) below.

The Essential Service Provider shall notify the consumer about the planned switch to the

new billing method by 15 March each year and not later than 15 days before applying

the new billing method. If the notification has been delivered on time, the change in the

rate shall be applied on the following month.

(2) Low voltage consumers billed by a Load and Time Rate in accordance with sub-closes (1) (d)

and (1) (h) above, whose consumption has been lower than 40,000 kilowatt-hour in the last

calendar year – a consecutive period of at least 12 months, shall be billed for consumption

by Unified Rates or by a Load and Time Rate, at their choice.

(3) A bi-monthly consumption bill shall be delivered to TLR consumers with a maximum

connection size of 3 X 80 ampere.

(4) Consumers billed by a Load and Time Rate shall be charged with a fixed payment, as

specified in Table of Rates 5.4-1 (general, “Remaining consumers including connections

greater than 100 ampere”).

(5) Consumers billed by Unified Rates shall bear the cost of meter removal and installation, as

specified in line 9 of Table of Rates 5.4-2.


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(6) Consumers wishing to enter into an arrangement for decentralized electricity production of

renewable energy in the net meter method in accordance to chapter H section H of the

Book of Standards.

(b) Low voltage consumers not billed by a Load and Time Rate

(1) A low voltage consumer that is not billed by a Load and Time Rate may request that the

amount of electricity consumed by him shall be calculated in accordance with one the

following plans:

(1a) Load and Time Rate – voluntary low voltage (hereinafter: “Voluntary TLR”), as

specified in Table of Rates 5.2-1, and in accordance with the demand hour clusters, as

specified in Table of Rates 5.1-2;

(1b) Domestic rate consumer – Load and Time Rate – simple voluntary low voltage

(hereinafter: “Simple Voluntary LTR”), as specified in Table of Rates 5.2-3, and in

accordance with the demand hour clusters, as specified in Table of Rates 5.1-2.

(a) A consumer whose electricity meter is installed inside the consumption location shall

bear the cost of work required by the supplier to move the meter outside the

consumption location, and shall bear the cost of removing the meter from the

apartment and installing a Load and Time Rate meter outside the consumption location,

as specified in line 24 of Table of Rates 5.4-2.

(b) In a consumption location where more than one meter is installed, all other meters shall

be removed prior to the installation of a Load and Time Rate meter. The consumer shall

bear the cost of removing the meters, as specified in line 9 of Table of Rates 5.4-2.

(2)

(a) Consumers belonging to the “Domestic” class, in accordance with standard 1

(definitions), shall pay a fixed payment as specified in Table of Rates 5.4-1, domestic

voluntary load and time rate.

(b) Consumers belonging to the “General” class, in accordance with standard 1 (definitions),

shall pay a fixed payment as specified in Table of Rates 5.4-1, general, remaining

consumers including connections greater than 100 ampere.

(c) Consumers belonging to the “Public Street Lighting” class, in accordance with standard 1

(definitions), shall pay a fixed payment as specified in Table of Rates 5.4-1, street

lighting.

(d) Consumers on a Simple Voluntary LTR plan shall pay a fixed payment as specified in

Table of Rates 5.4-1, accordingly.


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(3) The Essential Service Provider shall take the necessary measures required for the change to

a Voluntary Load and Time Rate within 3 months from the day of registering the consumer’s

request at the company’s offices, and subject to the existing inventory of meters. If a

suitable meter in unavailable, the supplier may extend the processing period by up to 12

months.

(4) The Essential Service Provider shall report to the Authority every 6 months about the

available inventory of meters, the number of consumers requesting this service that have

not yet been connected and the number of consumers already switched.

(5) The change to a prepaid meter shall be for a minimum period of one year. At the end of the

year, the consumer may switch to the Unified Rate, provided that the consumer bears the

cost of the meter removal and installation, as specified in line 9 of Table of Rates 5.4-2. The

Essential Service Provider shall carry out the request of the consumer within 90 days from

the day of registering the consumer’s request at the company’s offices.

(6) The Essential Service Provider shall new consumers on a Simple Voluntary LTR arrangement

with a calculation for the first 12 consecutive months of payments, for both Simple

Voluntary LTR and the Unified Rate to which they belonged before. At the end of the first

year, the consumer may choose whether to continue with the Simple Voluntary LTR plan or

to be billed by the Unified Rate, and shall be entitled for reimbursement for any difference

between the Unified Rate and the Simple Voluntary LTR for this period, whatever that may

be. A consumer that decides to return to the Unified Rate plan may not rejoin any Voluntary

LTR plan for 2 years after quitting it. Reimbursement shall be allowed once only.

(7) It is hereby clarified that, for the purpose of a transaction of electricity sale to consumers,

the same rules shall apply to both Load and Time Rate consumers specified in sub-close 31

(a) (1) and Load and Time Rate consumers specified in sub close 31 (b) (1).

(8) The Essential Service Provider shall new consumers on a Simple Voluntary LTR arrangement

with a calculation for the first 12 consecutive months of payments, for both Simple

Voluntary LTR and the Unified Rate to which they belonged before. At the end of the first

year, the consumer may choose whether to continue with the Simple Voluntary LTR plan or

to be billed by the Unified Rate, and shall be entitled for reimbursement for any difference

between the Unified Rate and the Simple Voluntary LTR for this period, whatever that may

be. A consumer that decides to return to the Unified Rate plan may not rejoin any Voluntary

LTR plan for 2 years after quitting it. Reimbursement shall be allowed once only.


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Section D: Consumer Appeals and Complaints

32. Methods of contacting an Essential Service Provider

(a) Public reception

(1) The Essential Service Provider shall operate public reception facilities at his offices to allow

consumers to contact it for clarifications, requests and service orders.

(2) The number of office reception hours shall be not less than 30 per week and the public shall

be notified about the reception hours.

(b) Contacting the supplier

The Essential Service Provider shall allow consumers to contact it in any of the accepted ways,

including:

(1) Public reception at the company’s offices;

(2) Written contact by mail, electronic mail and fax;

(3) Contact by phone.

(c) Cost of service

The cost of this service shall be covered under the fixed payment.


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33. Handling written and phone complaints by consumers

(a) Complaints by writing or by phone

The Essential Service Provider shall confirm the reception and handling of a consumer complaint

submitted by writing or phone to its offices. In the case of written complaints, the Essential

Service Provider shall issue a letter confirming their receptions.

(b) Maximum duration of handling a complaint

All complaints shall be handled within 21 work days from the date of receiving the complaint at

the offices of the Essential Service Provider. A written reply to the complaint shall be sent to the

consumer within the aforementioned period.

(c) Examination or further discussion

Is it is discovered, following an examination, that the matter of the complaint requires further

examination or discussion, the Essential Service Provider shall promptly notify the consumer in

writing, within 21 work days from the date of receiving the complaint at the offices of the

Essential Service Provider, about the reason for the delay in handling the complaint, and shall

inform the Authority about this notification.

(d) Complaints reaching the supplier through a different authority

Any consumer complaint that reaches the Essential Service Provider through a different

authority to which the complaint has been directed, shall be considered as a consumer

complaint, on all it entails, and all the provisions specified in this standard shall apply to it,

including handling schedules.

(e) Compensation for delay

In any case of delay past the schedules specified in this standard, the Essential Service Provider

shall compensate the complaining consumer in accordance with the rate specified in Table of

Rates 12.1-1.


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34. Complaints handled at the consumption location

(a) Complaints due to voltage level

(1) If a consumer complains about the level of voltage supplied to the consumption location,

the Essential Service Provider shall promptly examine the quality of the voltage at the

consumption location, not later than 5 work days from the date of receiving the complaint

at the offices of the Essential Service Provider, or by advance coordination as specified in

standard 9 ( Coordinated visit to the consumption location).

(2) If a deviation is discovered during the examination it shall be repaired as soon as possible,

and the consumer shall be inform about the results of the examination, as well as the

estimated schedules for the repair. A report specifying the repair made shall be sent within

3 days of conducting the work.

(3) At the discretion of the Essential Service Provider, equipment for continuous measurement

of voltage over a week may be installed, if the consumer complains about the level of

voltage at the consumption location and no deviation is found in the examination conducted

at the consumption location. The Essential Service Provider shall take the following factors

into consideration on this matter: multiple complaints by several consumers from the same

region or the accumulation of damages to consumers that are not recognized as eligible for

compensation according to the standards.

(4) The Essential Service Provider shall inform the consumer whether it has decided to conduct

a continuous measurement or it has decided that it is not necessary.

(b) Consumers not billed for repairs

If the consumer is not billed the repairs conducted by the Essential Service Provider, the

Essential Service Provider shall send the consumer a written notification regarding the repair

and the exemption from payment.

(c) Complaints due to a malfunction of the main installation

(1) If the consumer complaints about a malfunction of the apartment’s main installation, the

Essential Service Provider shall guide the consumer on how to test whether the malfunction

is in the supplier’s installation or the consumer’s installation. If the malfunction is in the

Essential Service Provider’s installation, the Essential Service Provider shall repair it not later

than 2 hours from the time of receiving the complaint.

(2) If the consumer contacts a private electrician after the Essential Service Provider reports

that the malfunction is in the consumer’s installation, and it is discovered that the Essential

Service Provider is wrong, the consumer shall be credited by the Essential Service Provider

for the cost of private electrician with the presentation of the relevant references to the

supplier.


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(3) Under bad weather conditions, in remote areas or under heavy traffic conditions, the

Essential Service Provider shall repair the malfunction within 3 hours form the time of

receiving the complaint.

(4) In any case of delay past the schedules specified in sub-closes (1) and (2) above, as well as in

case of a disconnection of power due to a malfunction where the Essential Service Provider

wrongfully reports that the malfunction is the consumer installation, the Essential Service

Provider shall compensate the consumer in accordance with the rate specified in Table of

Rates 12.1-1.

(d) Cost of repairs

For the repair specified in closes 34 (c), the consumer shall pay the Essential Service Provider the

sum specified in line 25 of Table of Rates 5.4-2. The provisions of close 24 (b) shall apply to this

payment.

(e) Malfunction of the consumer installation

If the Essential Service Provider visits the consumption location following a complaint regarding

the level of voltage supplied to the consumption location, or a complaint regarding the supply of

electricity, and the malfunction is found to be in the consumer’s installation, the consumer shall

bear the cost of the visit, as specified in line 3 of Table of Rates 5.4-2, provided that the supplier

has guided the consumer on how to test whether the malfunction is in the supplier’s installation

or the consumer’s installation, and has informed the consumer that if the malfunction is found

to be in the consumer’s installation and not in the supplier’s installation, the consumer shall

bear the bear the aforementioned cost.


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Chapter C: Connection to the Network

Section A: Definitions

Canceled – integrated with chapter A.


81

Section B: Network Component

35(b)(1) Cancelled

35(b)(2) Payment dates

(a) Network component payment dates

(1) Payments for a network component in a connection to the high voltage network shall be

made in accordance with the payment dates specified in standard 35 (d) (3) (submitting a

request for connection) and 35 (d) (4) (technical coordination).

(2) Payments for a network component in a connection to the low voltage network shall be

made in accordance with the payment dates specified in standard 35 (c) (2) (payments).


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Section C: Low Voltage Connection

35(c)(1) Low voltage connection

(a) Low voltage connection

(1) An electricity network connection with a connection size of less than 630 kVA shall be made

to a low voltage network.

(2) Notwithstanding the above, the Essential Service Provider shall allow a customer at his

request to connect to the low voltage network with a connection size over 630 kVA, under

the following conditions:

(a) The connection applicant is interested in increasing the size of an existing connection in

the low voltage network to a connection size not greater than 1,260 kVA;

(b) An additional transformer can be installed in an existing transformation station or on an

existing pole;

(c) No changes are required in the existing electricity network, except for changes in the

transformation station for the purpose of installing an additional transformer or in the

connection infrastructure intended for the connection applicant only;

(d) The time since the first connection to the low voltage network is more than a year or

the time since the last low voltage connection size increase is more than 3 years.

(3) The Essential Service Provider may request authorization from the commissioner of the

Electricity Administration for connections that deviate from the specified in this standard.

(4) If the commissioner of the Electricity Administration authorizes an irregular connection, the

Essential Service Provider shall apply to the Authority to determine the suitable payment

rate.


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35(c)(2) Payments for low voltage connection

(a) Low voltage connection

(1) Payment for connection to the low voltage network shall be as specified in Table of Rates

4.3-1 for single-family homes, Table of Rates 4.3-2 for multistory residential buildings and

Table of Rates 4.3-3 for industrial and commercial buildings, depending on the building

designation.

(2) Payment for connection of a building with units for different uses (hereinafter: “mixed

building”) shall be calculated as payment to two buildings of different types.

(3) Payment for connection of a special consumption facility shall be as specified in Table of

Rates 4.4 (work on account of others), in addition to the payment specified in close (1)

above. The business procedure for this works shall be according to chapter G standard:

“work on account of others”.

(b) Temporary connection

(1) Payment for temporary connection to the low voltage network shall be as specified in line 1


(2) An Essential Service Provider that dismantles the temporary connection, he shall reimburse

the connection applicant the depreciated property value of low voltage network

components and the payment made for network units.

(3) A connection applicant that requests to change the temporary connection into a permanent

connection, shall pay the cost of the permanent connection, as specified in close 35 (c) (2)

(a), minus the cost of the network components and connection already paid for under the

temporary connection that are also used for the permanent connection.

(c) Increasing the size of a connection

(1) Payment for increasing the size of a low voltage connection shall be calculated according to

the number of kVA units added to the existing connection, as specified in Table of Rates 4.3-

1 for single-family homes, Table of Rates 4.3-2 for multistory residential buildings and Table

of Rates 4.3-3 for industrial and commercial buildings, depending on the building

designation at the time of ordering the connection size increase.

(2) Payment for increasing the size of a connection followed by a transition from a connection

to the low voltage network to a connection to the high voltage network shall be made as

specified in sub-close 35 (d) (2) (a) (3).

(d) Several connection requests


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In case of a number of connection applicants requesting together several connections for

several units in the same building or for several adjacent single-family homes, their requests

shall be considered as a single connection request and the compatibility coefficient (k) shall

depend on the number of units in the order.

(e) Refund and completion

Payment at the relevant connection rate shall constitute the full compensation due to the

Essential Service Provider for the connection, refunds shall be made in accordance with the

specified in standard 27 (Billing error) and the consumer shall complete any missing

aforementioned payment.

(f) Increasing the size of a connection due to a decision by the provider

A consumer shall not pay for increasing the size of a single-phase supply connection from a

connection size of 1X25 ampere to a connection size of 1X40 ampere due to a decision by the

Essential Service Provider and without the request of the consumer.

(g) Payment method

(1) Payment of bills according to this chapter shall be made, at the consumer’s choice, by one of

the methods specified in close 25 (a), except by method of a standing order as specified in

sub-close 25 (a) (2).

(2) In case of a fast track connection, the Essential Service Provider may not allow payment by

the method specified in sub-close 25 (a) (3).

(h) Rate

All payments in this standard shall be calculated according to the valid rate on the day of issuing

the bill.

(i) Failure to meet schedules

An Essential Service Provider that does not meet the schedules specified in this standard and/or

the time tables agreed upon between him and the connection applicant in the technical

coordination shall pay the connection applicant the sums specified in Table of Rates 12.1-1.


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35(c)(3) Submitting a request for connection

(a) Obtaining information

Persons interested in information regarding a possible connection to the electricity network

shall apply in writing to the Essential Service Provider and specify as many of the following

details known to him:

(1) Block and lot of the designated building;

(2) Size of the requested connection in kVA;

(3) Connection point with the independent power facility;

(4) Initial expected load and future load development;

(5) Estimated progress schedule for building the independent power facility;

(6) Building designation;

(7) Existence of self production;

(8) Backup line requirement.

(b) Provider reply

(1) The Essential Service Provider shall reply to requests for information within 7 work days

from the day of receiving the request at the provider’s offices, with the following details:

(a) Applicability of the connection in accordance with the standards, the Electricity Law,

1954, and its regulations and any other laws;

(b) Availability of the supply to the requested connection location;

(c) Reliability of the supply at the requested connection location according to average

supply reliability measurements for the administrative region to which the connection

location belongs;

(d) Quality of the supply at the connection location if parameter statistics are available;

(e) Connection cost, depending only on the requested connection size if no additional

parameters affecting the connection cost are available;

(f) Requirement to establish a transformer room, subject to the specified in sub-close (2),

its size and the number and capacity of the transformers to be installed in it according

to the evaluation of the provider;


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(2) The Essential Service Provider may request establishing a transformer room as a condition

for the connection, when all the following conditions are met:

(a) The sum of all requested connection sizes and/or size increases is greater than 100 kVA;

(b) The requested supply cannot be properly provided from the existing network;

(c) The size of the room shall be decided by the Essential Service Provider, according to the

number of transformers required for the electricity supply and expected load increase

for the requested connection, and the supply reliability of the existing network.

(3) Notwithstanding the specified in sub-close (1) above, the Essential Service Provider may

delay the response time to within 14 work days if it required that he evaluate the need for a

transformer room.

(4) In order to provide a reply as specified in this standard, the Essential Service Provider may

request additional information, including information on the character and reliability of the

required supply and a detailed plan of the building for which the connection is intended.

(5) If the Essential Service Provider requests additional details, as specified in sub-close (4)

above, the days for a response specified in sub-close (1) above shall be counted from the

date of receiving the additional details at the provider’s offices.

(6) The day count for submitting additional details, as specified in sub-close (5) above, shall not

be included in the relevant day count for Table of Rates 12.1-1, provided that the Essential

Service Provider notifies the applicant that his request is delayed until the remaining details

required for the work are received.

(c) Costs

(1) The Essential Service Provider shall attach to his reply a bill for 10% of the connection cost

as known at the time (hereinafter: “the advance”), in accordance with the valid rate at the

time of issuing the bill. Payment of the advance shall be a prerequisite for opening a work

file at the offices of the Essential Service Provider.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to the payment of

the advance.

(3) The Essential Service Provider shall indicate on the bill, the applicant’s right for

compensation by the Essential Service Provider if he does not meet the schedule specified in

standard 35 (c) (2) (i).


87

35(c)(4) Technical coordination

(a) Technical coordination and schedule

Once a work file is opened at the offices of the Essential Service Provider, the provider and the

applicant shall begin the technical coordination of the connection works and estimated schedule

for its progress (hereinafter: “the technical coordination”). The coordination shall be

summarized in writing and shall include, among others, reference to the following issues:

(1) Work plans;

(2) Schedule for the connection;

(3) Location of meters in a multistory residential building, in accordance with the contractor’s

request;

(4) Allocation of responsibility of obtaining authorizations from the authorities. In this matter,

the Essential Service Provider shall be responsible, unless otherwise requested by the

connection applicant;

(5) Allocation of responsibility regarding the required dig works for the connection, as follows:

(a) In multistory residential buildings and in industrial, commercial and public buildings:

(1) If the dig or any part of it is conducted by the provider, the connection applicant

shall bear the cost of the connection, as specified in line 1 of Table of Rates 5-4.3,

regardless of the actual dig length, provided that the length of the dig inside the

private premises of the connection applicant does not exceed 35 meters, in which

case the applicant shall bear the cost of additional digging as specified in line 3 of

Table of Rates 5-4.3;

(2) If the dig is conducted by a third party on behalf of the connection applicant, the

connection applicant shall not bear the cost specified in Table of Rates 5-4.3;

(b) In single-family homes:

(1) In case of a connection that is not a connection size increase, the connection

applicant shall bear the cost of the connection as specified in Table of Rates 5-4.3;

(2) If the dig is conducted by a third party on behalf of the connection applicant, the

connection applicant shall bear the cost specified in line 2 of Table of Rates 5-4.3;

(6) Statistics referring to reliability parameters of the electricity supply in the network from

which the requested connection is to be fed, including at least:

(a) Average annual minutes of no-supply for the administrative area to which the

connection applicant belongs;


88

(b) Frequency of interruptions for the administrative area to which the connection

applicant belongs;

(c) Time of restoring supply in minutes for the administrative area to which the connection

applicant belongs;

(7) Statistics referring to quality parameters of the electricity supply in the network from which

the requested connection is to be fed, if available;

(8) Special requirements from the connection applicant;

(9) If a transformer room is required: the room structure, location, access routes, size, number

of transformers to be installed in and their capacity, any additional technical requirement

and the payment received by the connection applicant for the structure on transferring it to

the provider;

(10) The final cost of the connection.

(b) Time to complete coordination

(1) The technical coordination shall be completed within 30 work days from the date of

payment of the advance, as specified in sub-close 35 (c) (3) (c) (1).

(2) If the Essential Service Provider and the connection applicant begin the technical

coordination and the Essential Service Provider conceives that the connection request is for

an irregular connection or a special connection, he shall continue handling the request in

accordance with standard 35 (f) (1) or standard 35 (f) (2), as the case may be.

(c) Interim payment

(1) When the technical coordination is complete, the Essential Service Provider shall deliver a

request for payment to the connection applicant for a total of the difference between 70%

of the connection cost and the advance paid, in accordance with the valid rate on the date

of issuing the bill. The payment request shall be a prerequisite to proceeding with the

connection work.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to the bill specified

in sub-close (1) above.


89

35(c)(5) Changing and canceling a request for connection

(a) Changes to a connection request

(1) The connection applicant may make changes to the connection request, at no additional

cost, prior to the completion of the technical coordination and the issuing of the payment

request, as specified in sub-close 35 (c) (4) (c) (1).

(2) A connection applicant who wishes to make changes to the connection request after the

technical coordination is complete shall bear additional costs depending on the required

changes.

(3) After the technical coordination is completed and before the connection work is completed

by the Essential Service Provider:

(a) If the requested change involves an increase in the cost of the initial requested

connection, the connection applicant shall bear the costs of additional planning and

operation;

(b) If the requested change involves a decrease in the cost of the initial requested

connection or its cancellation, the Essential Service Provider shall refund the total

difference due to the change with accountant general interest.

(b) Cancelling a connection request

(1) If the connection applicant cancels his request 5 days after the advance payment date, for

any reason including reasons beyond his control, the sum of the advance paid by him shall

not be returned.

(2) If the connection applicant cancels his request at any time after payment is made, as

specified in sub-close 35 (c) (4) (c) (1), and before the Essential Service Provider has

completed the works, the connection applicant shall bear the costs incurred until the date

of cancellation.

(3) After work by the Essential Service Provider is complete, and regardless of the issuing and

fulfillment of the payment request as specified in sub-close 35 (c) (8) (c) (1), the connection

applicant shall not be refunded for the cancellation, in addition, the connection applicant

shall bear the remaining cost of the connection, as specified in sub-section 35 (c) (8) (c) (1).


90

35(c)(6) Obtaining authorizations from the authorities

(a) Obtaining authorizations

With the completion of the technical coordination, the Essential Service Provider and the

connection applicant shall act, in accordance with the technical coordination, to obtain the

authorizations from the authorities required for lawfully implementing the connection.

Notwithstanding the above, the provider may begin acting towards the aforementioned purpose

prior to the completion of the technical coordination. Regarding close 35 (c) (4) (b), his actions

shall not be considered part of the technical coordination.

(b) Provider’s obligation to obtain authorizations

If the Essential Service Provider is responsible, according to the technical coordination, to obtain

authorizations from the authorities, he shall act diligently and efficiently to obtain the

authorizations as soon as possible, and shall inform the connection applicant if any special

problems arise to delay obtaining the authorization.

(c) If authorizations are not possible to obtain

If the authorizations required for implementing the connection as agreed in the technical

coordination are not possible to obtain, both parties shall agree on the required changes in the

technical coordination, including specifying changes in the connection schedule, and act

according to the revised technical coordination agreed upon.


91

35(c)(7) Preparing the building for connection

(a) Obligation of the connection applicant

The applicant requesting a connection to the low voltage network shall make the building to

which the connection is intended available to the Essential Service Provider and ready for the

connection works, including tubes and recesses to lay infrastructure, a transformers room and

any other equipment or structure required by the Essential Service Provider in order to

implement the connection, in accordance with the technical coordination.

(b) Not providing a transformers room

If the connection applicant does not provide the Essential Service Provider with a transformer

room, in violation of the Essential Service Provider’s request in accordance with close 35 (c) (3)

(b) or in violation of the technical coordination, the Essential Service Provider shall provide the

connection applicant with electricity within the limits of the existing load of the low voltage

network.


92

35(c)(8) Conducting the connection work

(a) Authorizations from the authorities received at the provider’s offices

When the authorizations from the authorities to lawfully conduct the connection works are

received at the offices of the Essential Service Provider, the Essential Service Provider shall

inform the connection applicant that the connection can be made, provided that the building is

made available to the provider as specified in close 35 (c) (7) (a).

(b) Completing the work from the time the building is available to the provider

Once the connection applicant makes the building available to the Essential Service Provider as

specified in close 35 (c) (7) (a), the Essential Service Provider shall complete the connection work

in accordance with the technical coordination and the schedules set for the applicant. If not

otherwise agreed upon in the technical coordination, the time period for completing the

connection work shall not exceed 60 work days from the date of obtaining authorization from

the authorities in case of a connection to an existing low voltage network or 90 work days in

case a low voltage network is required to be established for the connection, and provided that

the commitments of the connection applicant specified in the technical coordination are met.

(c) Payment after the connection work is completed

(1) When the Essential Service Provider completes the connection works, he shall deliver a

request for payment to the connection applicant for the remaining cost of the connection.

(2) Sub-closes 24 (b) (1) and 24 (b) (3) regarding bills for services rendered shall apply to the

request for payment specified in sub-section 35 (c) (8) (c) (1) above. A connection applicant

that does not fulfill the request for payment shall not be eligible for a facility examination as

specified in standard 35 (c) (9) (Examination of the facility and voltage supply).


93

35(c)(9) Examinations of a facility and voltage supply

(a) Passing the facility examination

The Essential Service Provider shall provide voltage to the facility subject to successfully passing

the facility examination in accordance with the Electricity Law, 1954, and in coordination with

the connection applicant.

(b) Payment for the facility examination

(1) The connection applicant shall pay for the facility examination conducted by an examiner

authorized by the Essential Service Provider (hereinafter: “the examiner”) the payment

specified for a facility examination in Table of Rates 4.3-1 for single-family homes, Table of

Rates 4.3-2 for multistory residential buildings and Table of Rates 4.3-3 for industrial and

commercial buildings, depending on the designation of the structure (hereinafter: “payment

for facility examination”).

(2) When the connection applicant fulfills the request for payment specified in close 35 (c) (8)

(c) and pays for the facility examination, the facility shall be tested by the Essential Service

Provider’s examiner in accordance with the Electricity Law, 1954, and its regulations, as

soon as possible and not later than 7 work days from the date of payment and producing of

all required plans for the facility examination.

(c) A facility that does not meet the requirements of the law

(1) If the Essential Service Provider’s examiner finds that the electricity facility does not meet

the requirements specified in the Electricity Law, 1954, and its regulations, he shall submit a

faults report to the connection applicant.

(2) The connection applicant shall repair the discovered faults and order another examination

of the facility. The additional examination by the Essential Service Provider’s examiner shall

be made after payment by the connection applicant of the cost specified in sub-close 35 (c)

(9) (b) (1) for the additional examination.


94

35(c)(10) Quick connection

(a) Quick connection rules

If the connection applicant applies to the Essential Service Provider, orally or in writing,

indicating the contract number or lot of the building for which the connection is intended and

the size of the requested connection in kVA, and the provider undertakes to complete the

connection and examination of the facility within 30 work days from the date of receiving

payment for the connection, the following rules shall apply to the connection work:

(1) The connection applicant shall pay for the connection and examination of the facility in full,

as specified in Table of Rates 4.3-1 for single-family homes, Table of Rates 4.3-2 for

multistory residential buildings and Table of Rates 4.3-3 for industrial and commercial

buildings, depending on the designation of the structure at the time of submitting the

connection request;

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to bills specified in

sub-close (1) above;

(3) The Essential Service Provider shall complete the connection and the examination of the

facility within 30 work days from the date of receiving payment.


95

35(c)(11) special cases

Cancelled.


96

Section D: High Voltage Connection

35(d)(1) High voltage network connection

(a) High voltage connection

(1) An electricity network connection with a connection size between 630 kVA and 8 MVA shall

be made to a high voltage network.

(2) Notwithstanding the above, the Essential Service Provider shall allow the connection

applicant at his request to connect to the high voltage network with a connection size over 8

MVA, under the following conditions:

(a) The connection applicant is interested in increasing the size of an existing connection in

the high voltage network to a connection size not greater than 20 MVA;

(b) The requested connection is technically feasible. Any disputes regarding the technical

feasibility of the connection shall be resolved by the Electricity Administration

Commissioner.


97

35(d)(2) Payments for low voltage connection

(a) Rates

(1) Payment for connection to the high voltage network shall be as specified in Table of Rates

4.2-1. This payment shall apply to any building that is not supplied by the high voltage

network.

(2) Payment for increasing the size of a high voltage connection shall be calculated according to

the number of kVA units added to the existing connection, without the fixed payment paid

for the first connection, as specified in Table of Rates 4.2-1.

(3) Payment for increasing the size of a connection followed by a transition from a connection

to the low voltage network to a connection to the high voltage network shall be made as

follows:

(a) Payment as specified in sub-close 35 (d) (2) (a) (1) above;

(b) For low voltage network components that the Essential Service Provider wishes to sell to

the connection applicant and that the connection applicant wishes to buy from the

Essential Service Provider, the connection applicant shall pay the provider in accordance

with the depreciated value of the property;

(c) Low voltage network components that the Essential Service Provider does not wish to

sell to the connection applicant or that the connection applicant does not wish to buy

from the Essential Service Provider, shall be dismantled and removed by the Essential

Service Provider, who may install them in a different location, provided that they are in

working order and will not cause a decrease in the average quality and reliability of

electricity in the area;

(d) In case of a connection size increase within 3 years from the date of implementing the

first connection to the low voltage network or from the date of a connection increase

requiring new infrastructure, the Essential Service Provider shall be required to sell and

the consumer shall be required to buy the low voltage network components in

accordance with the terms specified in sub-close 35 (d) (2) (a) (3) (b).

(b) Calculation according to the valid rate


the bill.

(c) Failure to meet schedules

An Essential Service Provider that does not meet the schedules specified in this standard and/or

the time tables agreed upon between him and the connection applicant in the technical

coordination shall pay the connection applicant the sums specified in Table of Rates 12.1-1.


98


99

35(d)(3) Submitting a request for connection

(a) Receiving information regarding a possible connection

Persons interested in information regarding a possible connection to the electricity network

shall apply in writing to the Essential Service Provider and specify as many of the following

details known to him:

(1) Block and lot of the designated building;

(2) Size of the connection requested in kVA;

(3) Connection point with the independent power facility;

(4) Initial expected load and future load development;

(5) Estimated progress schedule for building the independent power facility;

(6) Planned consumption type, including details of a 24-hour electricity use cycle;

(7) Method of starting engines, if available;

(8) If self-production exists – the number and size of all production units;

(9) Existence and capacity of electricity devices such as arc furnaces, levelers, asymmetric loads;

(10) Backup line requirement.

(b) Provider response

(1) The Essential Service Provider shall respond to requests for information within 14 work days

from the day of receiving the request at the provider’s offices, except in cases of self-

production, with the following details:

(a) Applicability of the connection in accordance with the standards, the Electricity Law,

1954, and its regulations and any other laws;

(b) Availability of the supply to the requested connection location;

(c) Reliability of the supply at the requested connection location according to average

supply reliability measurements for the administrative region to which the connection

location belongs;

(d) Connection cost, depending only on the requested connection size if no additional

parameters affecting the connection cost are available.

(2) In cases where self-production exists, the Essential Service Provider shall respond to the

request within 30 work day.


100

(c) Request for details

(1) In order to provide a response as specified in this standard, the Essential Service Provider

may request additional information, including information on the character and reliability of

the required supply and a detailed plan of the building for which the connection is intended.

(2) If the Essential Service Provider requests additional details, as specified in sub-close 35 (d)

(3) (c) (1), the days for a response specified in close 35 (d) (3) (b) shall be counted from the

date of receiving the additional details at the provider’s offices.

(d) Advance

(1) The Essential Service Provider shall attach to his response a request for the payment of an

advance (hereinafter: “the advance”) for 10% of the known connection cost. Payment of the

advance shall be a prerequisite for opening a work file at the offices of the Essential Service

Provider.


the advance.



standard 35 (d) (2) (c).

(e) Prepayment

(1) If the Essential Service Provider undertakes to conduct the connection within 21 days, and at

the request of the connection applicant, the Essential Service Provider shall attach to his

reply a request of payment for the full cost of the connection, as specified in Tables of Rates

4.2-1 and 4.2-2. If the Essential Service Provider undertakes to conduct the facility

examination within 3 days from completing the connection work, he shall also attach to his

reply a request of payment for the facility examination, as specified in Tables of Rates 4.2-1.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to the prepayment.



standard 35 (d) (2) (c).


101

35(d)(4) Technical coordination

(a) Technical coordination and schedule

Once a work file is opened at the offices of the Essential Service Provider, the provider and the

applicant shall begin the technical coordination of the connection works and estimated schedule

for its progress (hereinafter: “the technical coordination”). The coordination shall be

summarized in writing and shall include, among others, reference to the following issues:

(1) Connection direction;

(2) Location of the independent facility;

(3) Specification of the equipment to be installed by the Essential Service Provider in the

switching room;

(4) Construction of the independent electricity facility;

(5) Reliability parameters of the electricity supply in the network from which the requested

connection is to be fed, including:

(a) Weighted average annual minutes of no-supply in the feeding network;

(b) Frequency of interruptions in the feeding network;

(c) Time of restoring supply in the feeding network;

(6) Quality parameters of the electricity supply in the network from which the requested

connection is to be fed, as follows:

(a) Annual passing interruptions in the feeding network;

(b) Number of annual dip events in the feeding network, if data is available with the

provider;

(c) Harmonic analysis in the feeding network, if data is available with the provider;

(7) Electrical details of the equipment type and its installation method, safety, compatibility

with relevant standards and installation of measuring and meter systems including cost;

(8) The final cost of the connection.

(b) Time to complete the technical coordination

(1) The technical coordination shall be completed within 30 work days from the date of

payment of the advance, as specified in sub-close 35 (d) (3) (d) (1). For this purpose the time

required to obtain authorizations from the authorities shall not be counted.


102

(2) If the Essential Service Provider and the connection applicant begin the technical

coordination and the Essential Service Provider conceives that the connection request is for

an irregular connection or a special connection, he shall continue handling the request in

accordance with standard 35 (f) (1) or standard 35 (f) (2), as the case may be.

(c) Interim payment

(1) When the technical coordination is complete, the Essential Service Provider shall deliver a




connection work.




103

35(d)(5) Changing and canceling a request for connection

(a) Changes to a connection request

(1) The connection applicant may make changes to the connection request, at no additional

cost, prior to the completion of the technical coordination and the issuing of the payment

request, as specified in sub-close 35 (d) (4) (c) (1).

(2) A connection applicant that wished to make changes to the connection request after the

technical coordination is complete shall bear the additional planning costs depending on the

required changes.

(3) After the technical coordination is completed and before the connection work is completed

by the Essential Service Provider:



operation;


connection or its cancellation, the Essential Service Provider shall refund the total

difference due to the change with accountant general interest.

(b) Cancelling a connection request

(1) If the connection applicant cancels his request at any time after the payment of the

advance, for any reason including reasons beyond his control, the sum of the advance paid

by him shall not be returned.

(2) If the connection applicant cancels his request at any time after payment is made, as

specified in sub-close 35 (d) (4) (c) (1), and before the Essential Service Provider has

completed the works, the connection applicant shall bear the operational costs incurred

until the date of cancellation.

(3) After work by the Essential Service Provider is completed, and regardless of the issuing and

fulfillment of the payment request as specified in sub-close 35 (d) (8) (a) (2) (a), the

connection applicant may no longer cancel his request. The connection applicant shall bear

the full normative cost of the connection, as specified in sub-section 35 (d) (8) (a) (2) (a).


104

35(d)(6) Independent power facility

(a) Duties of the connection applicant

(1) The applicant for a connection to the high voltage network shall make available to the

Essential Service Provider, for the purpose of implementing the connection, a switching

room including a high voltage connection point, a plan for the location of a transformer

array and connections to locate the connection point, posts, measuring containers and any

other equipment or structure required for the connection, in accordance with the technical

coordination.

(2) Subject to the fulfillment of his legal duties, the connection applicant shall make the

independent facility available to the Essential Service Provider in order to continue the

connection work.

(b) Location of the facility

The connection applicant shall place the independent power facility at a distance of no more

than 15 meters from the end of the private area from the direction of the feeding network. If

the outgoing point to the network connection is inside the private area, the connection

applicant shall place the independent power facility at the closest possible location to the

connection point or at a distance of 15 meters from the end of the private area near the feeding

network, whichever is closest. If the connection applicant violates the aforementioned he shall

bear the cost of any additional infrastructure work. For an additional length of high voltage line

the connection applicant shall pay the provider the sum specified in Table of Rates 4.2-1, cost

per km of high voltage line.

(c) Measuring containers

(1) The connection applicant shall purchase measuring containers from the Essential Service

Provider or from a different source.

(2) If the connection applicant purchases a measuring container from a different source, he

shall ensure that the physical measurements of the equipment installed in the cabinets of

the Essential Service Provider is compatible with the measurements of the cabinet.

(3) The Essential Service Provider shall install and examine the measuring containers; the

connection applicant shall pay the provider for the cost of the installation and examination,

as specified in Table of Rates 4.2-3 and 4.2-4.


105

35(d)(7) Responsibilities and ownership

(a) Operation, maintenance and ownership

(1) The Essential Service Provider shall operate and maintain the high voltage network,

including the metering system.

(2) The independent power facility, except the meter and any other part of the power facility

paid for by the Essential Service Provider to the connection applicant, shall be the property

of the connection applicant or the person for whom the connection is ordered.


106

35(d)(8) Conducting and completing the connection work

(a) Schedule and payments

(1) The Essential Service Provider shall complete the connection work in accordance with the

technical coordination and the schedules set for the applicant. the time period for

completing the connection work shall not exceed 6 months from the date of payment of the

advance, as specified in sub-close 35 (d) (3) (d) (1); for this purpose, the time required for

the connection applicant to make payments or to lawfully obtain all authorizations or any

other delay caused by him, shall not count.

(2)

(a) When the Essential Service Provider completes the connection works, he shall deliver a

request for payment to the connection applicant for the remaining 30% of the cost of

the connection; sub-closes 24 (b) (1) and 24 (b) (3) regarding bills for services rendered

shall apply to the request for payment.

(b) A connection applicant that does not fulfill the request for payment specified in this

standard, shall not be eligible for a facility examination, as specified in close 35 (d) (9)

(a).


107

35(d)(9) Examinations of the facility and voltage supply

(a) Passing the facility examination

The Essential Service Provider shall provide voltage to the facility subject to successfully passing

the facility examination, as specified in close 35 (d) (9) (a), and in coordination with the

connection applicant.

(b) Examination and costs

(1) The connection applicant shall pay for the facility examination conducted by an examiner

authorized by the Essential Service Provider the payment specified in Table of Rates 4.2-1.

(2) When the connection applicant fulfills the request for payment specified in sub-close 35 (d)

(8) (a) (2) and pays for the facility examination specified in sub-close (1) above, the facility

shall be tested by the Essential Service Provider’s engineer examiner in accordance with the

Electricity Law, 1954, and its regulations, as soon as possible and not later than 7 work days

from the date of payment, as specified in sub-close (1) above.

(3) If the Essential Service Provider’s engineer examiner finds that the electricity facility does

not meet the requirements specified in the Electricity Law, 1954, and its regulations, he shall

submit a faults report to the connection applicant.

(4) The connection applicant shall repair the discovered faults and order another examination

of the facility. The additional examination by the Essential Service Provider’s engineer

examiner shall be made after payment by the connection applicant of the cost specified in

sub-close (1) above for the additional examination.

(5) The Essential Service Provider shall conduct an examination of watt-metric protections

(primary protections). Calibration of the circuit breaker may be conducted by a certified

laboratory or by the Essential Service Provider. If the examinations are made by the

provider, the connection applicant shall pay the Essential Service Provider as specified in



108

35(d)(10) Additional feed

(a) Additional connection

(1) The Essential Service Provider, at the request of the connection applicant and given existing

transfer capability, shall connect the independent facility of the connection applicant in an

additional connection line.

(2) This connection line may come out of a different transformer in the same sub-station or

from a transformer in a different sub-station. Payment for this additional connection shall

be in accordance with the normative cost of a line in different voltages specified in Table of

Rates 4.2-1.


109

35(d)(11) special cases

Cancelled.


110

Section D (a): Connecting a production facility to the high voltage network

35(d)(a)(1) Preliminary feasibility survey

For the purpose of this standard:

“Land division” – an area of land or a number of areas of land that share borders, that are the

property of a person or that a person holds leasing rights to.

(a) Preliminary feasibility survey

(1) Any person interested in receiving information regarding a possible connection to the

electricity network for the purpose of transferring energy to the high voltage distribution

network (herein after: “the distribution network”), shall apply to the Essential Service

Provider in writing to request a preliminary feasibility survey for transferring energy to the

distribution network (hereinafter: “feasibility survey”), as a minimum condition for

obtaining a conditional license.

(2) The feasibility survey applicant shall provide the Essential Service Provider with the

following details:

(a) Applicant details;

(b) Location of the requested connection;

(c) Maximum capacity of the facility;

(d) Size of the requested connection;

(e) Production technology;

(f) A basic description of the production facility and the expected operating regime;

(g) Basic configuration of the facility;

(h) Estimated schedule for establishing the facility and start of commercial operation;

(3) The Essential Service Provider shall not conduct a feasibility survey for a production facility

or for a number of production facilities on a land division, whose maximum capacity is

higher than the specified in standard 35 (d) (1), high voltage network connection.

(4) As a condition for conducting the feasibility survey, the Essential Service Provider shall

collect an advance for the connection rate specified in Table of Rates 4.2-1 under the

heading “Rate for conducting a preliminary feasibility survey for transferring energy to the

distribution network”.


111

(5) Close 24 (c) regarding payment for services not yet rendered shall apply to the request for

payment of the advance.

(6) The feasibility survey shall refer to existing knowledge relevant to the network at the time of

the survey, and shall include, among others, the applicability of connecting the production

facility to the distribution network in reference to the following points:

(a) Voltage and size of the connection;

(b) Requested schedule and feasible schedule for implementing the connection;

(c) Capacity transfer of the production facility in the high voltage network and the sub-

station to which the production facility is connected under normal operating regime;

(d) Level of short circuit currents;

(e) Required network upgrades for receiving the production facility;

(f) Possible alternatives as required;

(g) Plans to establish new networks in the area of the requested connection;

(h) Existing connection requests and other feasibility surveys conducted or in progress for

other feasibility survey applicants, and the effect of their results on the feasibility survey

applicant.

(7) If the results of the feasibility survey indicate the inability of the Essential Service Provider to

meet the schedules requested by the feasibility survey applicant for the purpose of

completing the connection, the survey shall also include explanations and reasons as well as

alternative schedules for the connection work.

(8) The Essential Service Provider shall submit the results of the feasibility survey to the

connection applicant not later than 45 work days from the date of payment or from the date

of receiving the information specified in close (2) above, whichever is later.

(9) The feasibility survey shall only serve as an indication of the ability to connect to the

distribution network according to the schedules specified in it, as of the date of the survey.

The obligation of the Essential Service Provider to reserve a place in the network and to

conduct the work according to the required schedules shall be the date of opening a work

file at the offices of the Essential Service Provider, as specified in standard 35 (d) (3) (d).

(10) The Essential Service Provider shall make all information regarding feasibility surveys, except

for information that is considered a “commercial secret”, available to the public in such a

way as to allow any person to examine the status of initiatives at any time, and all in

accordance with the law and in coordination with the Authority.


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(11) The feasibility survey applicant shall be entitled to contest the results of the feasibility

survey by appealing to the Head of the Engineering Department at the Authority within 15

work days from the date of receiving the results of the survey. The Head of the Engineering

Department at the Authority shall announce his decision regarding the appeal within 45

work days from the date of receiving all the information required by him.


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35(d)(a)(2) opening a connection file

(a) Opening a connection file

(1) A holder of a conditional license (hereinafter: “the license holder”) may open a work file at

the offices of the Essential Service Provider after receiving authorization from the planning

body for presenting the plan of the facility to public comments and reservations in the

relevant planning institutions. If the license holder is not required to submit a plan and/or to

receive authorization to build the facility, he may open a work file after obtaining a building

permit from the relevant authority.

(2) The opening of the work file and any further business procedures shall be in accordance

with standards 35 (d) (3) (d) to 35 (d) (10).

(3) If the conditional license is cancelled or expired, the Essential Service Provider shall close the

work file.

(4) Notwithstanding the specified in standard 35 (d) (5) (a), starting from the date of opening

the work file, changes to the planned facility that result in any increase in the outgoing

capacity of the facility shall be handled as a separate and new request that is not included in

the undertaking of the Essential Service Provider regarding the connection, as specified

under the opening of the work file. Changes to the planned facility that result in a capacity

of 50% or more of the specified capacity shall lead to the closing of the work file and

termination of the provider’s undertaking regarding the connection and to the conducting of

a new connection survey.


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Section E: Extra-high voltage connection

35(e)(1) Extra-high voltage and ultra-high voltage connection size

Definitions:

“Mandatory examination by a transmission license holder” – acceptance examination for an

independent power facility required of the connection applicant to be conducted by a transmission

license holder.

“Mandatory examination by a lawfully authorized person” - acceptance examination for an

independent power facility required of the connection applicant to be conducted by a lawfully

authorized person.

“Switching premises under the responsibility of a transmission license holder” – part of the extra-

high voltage order of the production facility, including the equipment, materials and property used

and/or (as the case may be) intended for the connection of the production facility to the electricity

network that is under the responsibility of the connection applicant.

“Production premises of the connection applicant” – a premises where the connection applicant’s

production unit is installed.

(a) Extra-high and ultra-high voltage connection size

(1) A new connection to the electricity network with a connection size greater than 8 megavolt

ampere and up to a connection size of 250 megavolt ampere shall be made to a 161 kV

extra-high voltage network. Notwithstanding the above, subject to statutory feasibility and

due to cost-benefit considerations required to implement the connection, a holder of a

distribution license shall connect to the high-voltage electricity network with a connection

size greater than 8 megavolt ampere, provided that the final connection size of the

connection applicant to the high voltage network shall not exceed 16 megavolt amperes.

(2) A new connection to the electricity network with a connection size greater than 250

megavolt ampere and up to a connection size of 400 megavolt ampere shall be made to a

161 kV extra-high voltage network. Notwithstanding the above, subject to statutory permits

and to cost-benefit considerations required to implement the connection, and subject to

authorization by the Head of the Engineering Department at the Authority, the connection

shall be made to the ultra-high voltage network.

(3) A new connection to the electricity network with a connection size greater than 400

megavolt ampere shall be made to the ultra-high voltage network. Notwithstanding the

above, in exceptional cases, and subject to statutory permits and to cost-benefit

considerations required to implement the connection, and subject to authorization by the

Head of the Engineering Department at the Authority, the connection shall be made to the

extra-high voltage network.


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(4) A producer’s connection size, including a producer in the premises of a consumer, shall not

be smaller than the connected load of the production facility or the consumer’s connection,

whichever is greater.

(5) Notwithstanding the aforementioned in sub-close (4), the connection size for pumped

storage production shall not be smaller than the electric capacity of the units’ engines while

pumping.

(6) A request to increase or decrease the connection size shall be made in accordance with the

specified in sub-closes (1) to (5) above.

(b) Connection scheme

(1) The connection scheme for each new connection or connection change to the extra-high

network and ultra-high network shall be in the form of at least a single incoming and a single

outgoing. The number of incoming and outgoing points shall be determined in accordance

with the ability to transmit the capacity in the lines in order to receive and spend energy,

and the required reliability of the supply.

(2) Notwithstanding the aforementioned in sub-close (1), and subject to the technical feasibility

of the connection work and the differences in the reliability level of the different connection

types, a consumer requesting a new connection to the extra-high network shall be entitled

to select the connection scheme, provided that the requested connection size does not

exceed 50 megavolt ampere and that the distance of branching from an existing network

does not exceed 10 km.

(3) A producer or a producer on the premises of a consumer, who is connected with a T type

connection, and requests a change in the connection size of the facility, shall modify the

connection scheme according to the form specified in sub-close (1) above as a condition for

the requested change.

(4) The connection shall be made by a transmission license holder in accordance with the

technical and safety specifications prescribed by law.

(5) The connection applicant shall establish a sub-station for the purpose of the connection and

make available to a transmission license holder, free of charge, a premises that includes the

sub-station equipment and constitute a part of the transmission system, this premises shall

be under the responsibility, operation and maintenance of the transmission license holder.


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35(e)(2) Payments for extra-high voltage or ultra-high voltage connection

(a) Payment for a first connection to the extra-high voltage or ultra-high voltage network

Payment for a first connection to the extra-high voltage network or the transmission network

shall be as specified in lines 1 or 2 of Table of Rates 4.1-1 respectively.

(b) Payment for increasing or decreasing a connection size not involving voltage switching

(1) A connection applicant wishing to increase the size of an existing extra-high or ultra-high

voltage connection, and the size increase does not involve voltage switching, shall bear the

cost of the size increase specified in line 3 or line 4 of Table of Rates 4.1-1 respectively.

(2) A connection applicant wishing to decrease the size of an existing extra-high or ultra-high

voltage connection, and the size increase does not involve voltage switching, shall bear the

cost in accordance with the Table of Rates for works on account of others for extra-high

voltage, minus the residual value of the removed equipment.

(c) Payment for increasing or decreasing a connection size involving voltage switching

(1) In case of a connection applicant wishing to increase the size of a connection from the low

voltage or high voltage network to the transmission network, any requested connection size

shall be considered as a new connection and the connection applicant shall bear the cost

specified in lines 3 or 4 of Table of Rates 4.1-1, according to the connection voltage.

(2) A connection applicant wishing to increase the size of an existing extra-high voltage

connection, and the size increase involves voltage switching between extra-high voltage and

ultra-high voltage or vice-versa, shall bear the cost of any requested connection size as

specified in lines 3 and 4 of Table of Rates 4.1-1, according to the connection voltage. In

addition, the connection applicant shall bear the cost of the residual value of the connection

line to the transmission network installed for the original connection. It is here by clarified

that any request, for any connection size, to increase the size of a connection from the

extra-high voltage network to the ultra-high voltage network shall be considered as a new

connection.

(3) No place shall be reserved in the transmission network for a consumer connected to the

extra-high voltage network in accordance with his connection size, if the maximum capacity

used by him for two consecutive years is smaller than 6 MVA, but for a connection size of 6

MAV. If more than 25 years have passed since the implementation of the connection, the

head of the engineering department may, after examining all costs, authorize the holder of

a transmission license, at his request, to switch the consumer to a high voltage connection,

at no expense by the consumer, and the sub-station shall be transferred to the responsibility

of the transmission license holder.

(d) Payment for examination and acceptance examination


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Payment for acceptance examination, and payment for examination prior to providing voltage

to an extra-high voltage facility or an ultra-high voltage facility, shall be as specified in Table of

Rates 4.2-1 (required examination of a sub-station that the connection applicant is required to

conduct through a holder of a transmission license).

(e) Calculation according to the valid rate


the bill.


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35(e)(3) Submitting a request for connection of a consumption facility

(a) Receiving information regarding a possible connection of a consumption facility to the

transmission network

Persons interested in information regarding a possible connection of a consumption facility to

the extra-high or ultra-high voltage network shall apply in writing to the System Manager. The

application shall include all the details and documents known and available to the information

applicant and at least the following details and documents:

(1) Details of the applicant;

(2) Block and lot of the designated building or premises;

(3) Building and city plans and a detailed map of the area of the requested connection, as are

available to him;

(4) Location of the independent sub-station and the method of connection to it;

(5) Size of the requested connection in megavolt ampere;

(6) Requirement of a high voltage backup line, required capacity and type of backup, cold or

hot, as much as this information is available to him;

(7) Estimated progress schedule for building the consumption facility;

(8) Required connection date;

(9) Expected existence and capacity of large electricity devices greater than 1 MVA, such as: arc

furnaces, levelers, asymmetrical loads, radically changing loads such as melting furnaces,

loads causing upper waves and harmonics;

(10) Method of starting engines and their capacity;

(11) Single line diagram of the consumption facility;

(12) Expected initial load and load development for the next 5 years;

(13) Character of planned consumption, including details of expected 24-hour use cycle by

season;

(14) Existence of self production: capacity, technology, planned operating regime.

(b) System Manager response

The System Manager, after receiving a written response within 14 work days from the

transmission license holder regarding the information relevant for the requested network


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connection, shall reply to the application not later than 45 days from the date of receiving it,

with the following details:

(1) Applicability of the connection in accordance with the standards;

(2) Location of the connection for the connection applicant consumer considering the

transmission infrastructure in the area of the requested connection and adjacent sub-

station;

(3) Possible dates for a first meeting to present a response, to be set not later than 15 days

from the fate of transferring the response to the information applicant in writing;

(4) The connection rate in accordance with Table of Rates 4.1-1;

(5) Information for the information applicant regarding equipment specifications and the

connection scheme with existing standards of the transmission license holder, including

information regarding data of the transmission, command and communication systems;

(6) Statistical data regarding the quality and reliability of the electricity supplied in the area of

the requested connection and in other areas that may affect the quality and reliability of the

electricity in the facility and the connection line;

(7) An estimated schedule for implementing the connection from the date of requesting the

connection and fulfillment of the payment specified in this standard.

(c) Request for additional details

(1) If the System Manager requires additional details from the information applicant, he shall

transfer a data request to the information applicant not later than 14 work days from the

date of providing the details for the system manger, as specified in close (b) above,

including:

(a) Preliminary construction plans of the facility for which the connection is intended;

(b) Desired direction for incoming electricity supply;

(c) High voltage lines route, including incoming and outgoing points, and specification of

overhead lines and underground lines in the premises of the information applicant and

owned by him;

(d) Indication of distances of construction and construction free corridor from the incoming

and outgoing lines.

(2) If the System Manager requests additional details, as specified in this close, the days for a

response specified in close (b) above shall be counted from the date of receiving the

additional details at the System Manager’s offices.


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(3) The list of additional details required by System Manager in a request for additional details

shall be detailed and final.

(d) First payment of the connection applicant for a consumption facility

(1) The system manger shall attach to his response, specified in close (b) above, a request for

the payment of an advance (hereinafter: “the advance”) for 10% of the known connection

cost in accordance with the valid rate at the date of issuing the bill as specified in Table of

Rates 4.1-1. Payment of the advance shall be a prerequisite for opening a work file at the

offices of the System Manager.


the advance.

(3) When the advance is paid, a coordination meeting shall be scheduled for the connection

applicant within 15 work days from the date of payment of the advance.

(4) The opening of a work file and the continuation of the connection process for a connection

applicant who is a consumer shall be made in accordance with standard 35 (e) (7) and

onwards.


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35(e)(4) Feasibility survey for transferring energy

(a) Feasibility survey for transferring energy for persons interested in applying for a production

license

(1) Any person interested in receiving connecting a production facility to the extra-high voltage

or ultra-high voltage network, or to increase the size of a connection of a production facility

connected to the extra-high voltage or ultra-high voltage network, shall apply to the System

Manager to request a feasibility survey for connecting the facility and transferring energy to

the distribution network (hereinafter: “feasibility survey”), as a minimum condition for

obtaining a conditional license or changing a permanent license. For this purpose, a change

shall mean increasing the connected load by more than 5%.

(2) The System Manager shall transfer a payment request to the applicant in accordance with

line 5 of Table of Rates 4.1-1, and attach to it a list of data the survey applicant is required to

submit to the System Manager as a condition to conducting the survey, as specified in sub-

close (4) below.



(4) After the payment is made, as specified in sub-close (2) above and for the purpose of

conducting the survey, the feasibility survey applicant shall provide the System Manager a

request with the following details:

(a) Details of the applicant;

(b) Block and lot of the designated building or premises;

(c) Building and city plans and a detailed map of the area of the requested connection, as

are available to him;

(d) Location of the independent sub-station and the method of connection to it;

(e) Size of the requested connection in megavolt ampere;

(f) The maximum production capacity of the facility;

(g) A basic description of the production facility (conventional in an open or close cycle,

cogeneration in an open or close cycle, pumped storage, renewal, etc.) and expected

operating regime;

(h) Production technology and characteristic, if known;

(i) Estimated progress schedule for building the facility and the required connection date;

(j) Estimated schedule for completing the building of the facility;


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(k) Estimated schedule for start of commercial operation;

(l) Principle single line diagram of the independent facility;

(m) Estimated expected initial connected load and estimated perennial future plan for

connected load growth rate.

(b) Request for additional details

(1) If the System Manager requires additional details from the feasibility survey applicant, he

shall transfer a data request to the survey applicant not later than 14 work days from the

date of providing the details specified in close (a) above, including:

(a) Preliminary construction plans of the facility for which the connection is intended;

(b) Incoming and outgoing points and specification of overhead lines and underground lines

in the premises of the information applicant and owned by him.

(2) The list of additional details required by System Manager in accordance with close (b) (1)

shall be detailed and final.

(3) The System Manager shall complete the feasibility survey within 60 work days from the day

of fulfilling the payment specified in close (a) (2) above or from the date of receiving the

additional details specified in sub-close (1) above, whichever is later. A copy of the feasibility

survey shall also be forwarded to the head of the engineering department.

(4) If the system manger is late in completing the feasibility survey within the period of time

specified in sub-close (3) above, but by no more than 30 work days, he shall pay the survey

applicant the sum specified in Table of Rates 12.1-1 (payment for violation of standards), for

each day of delay.

(5) If the system manger is late in completing the feasibility survey beyond the period of time

specified in sub-close (4) above, he shall pay the producer the sum specified in Table of

Rates 12.1-1 (payments for violation of standards), for each additional day of delay,

according to the capacity of the facility requested in the feasibility survey.

(6) Notwithstanding the specified in close (5) above, if more than 60 days have passed from the

date in which the system manger was required to complete the feasibility survey as

specified in close (3) and the survey is not yet completed, the feasibility survey shall be

considered favorable, with all it entails.

(c) System Manager response

(1) The System Manager shall include in the survey conducted by him reference to any available

relevant information regarding the network at the time of conducting the survey and the

independent sub-station and the method of connecting to it, including plans for new


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networks in the area of the requested connection, existing connection requests and

previous connection surveys, facilities in the development plan, including facilities whose

implementation is delayed. The feasibility survey shall include, among other, reference to

the applicability of the connection of the connection applicant’s facility to the transmission

network considering the following points:

(a) Voltage and size of the requested connection;

(b) Requested schedule and feasible schedule for implementing the connection;

(c) Long term expected maximum level of short circuit currents in the area of the requested

connection;

(d) Existing connection requests and previous feasibility surveys that may affect the

applicability of the requested connection in accordance with the information available

to the System Manager at the time of submitting the survey request;

(e) Modifications and upgrades required in the lines and facilities of the transmission

license holder or in the facilities of consumers and other producers, for the purpose of

receiving the production facility of the survey applicant, with the expected dates of their

completion;

(f) A possible schedule for implementing the connection and the required operations in

accordance with sub-close (e) above, specifying the required operations under the

control of the Essential Service Provider and the schedule for their implementation and

the operations not under the control of the Essential Service Provider and the estimated

schedule for their implementation (obtaining authorizations). In any case, the estimated

schedule shall be from the date of the connection request and payment, as specified in

this standard;

(g) In case of a pumped storage production facility, the survey results shall also include

aspects of pumping regimes, considering pump capacities while pumping. In case of a

facility of a technology using consumption regimes for production, the survey results

shall also include aspects of consumption regimes;

(h) If the feasibility survey does not allow to connect the facility with the capacity and on

the date requested, or in accordance with the milestones set by the Authority in the

license for the connection type, the System Manager shall present the survey applicant

with the maximum capacity with which he is able to connect to the network and the

reasons for refusing is request, in accordance with the schedule specified in close (b) (3)

above;

(i) When submitting the survey to the survey applicant, the system manger shall attach to

the survey details of the technical conditions for connecting production units to the

transmission network and information regarding the equipment specification and


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connection scheme with the existing standards of the transmission license holder,

including information regarding data of the transmission, command and communication

systems, as well as information regarding short circuit current levels and operational

current of the equipment by which the survey applicant is to plan his facility;

(2) The System Manager shall also attach to the feasibility survey a “what if analysis” table

regarding existing feasibility surveys. The table shall indicate any direct or indirect effect of

other applicants on the survey applicant in accordance with close (c) (1) (d) above.

(3) The System Manager shall receive a reference in writing from the transmission license

holder regarding information relevant to the conducting of the survey, including schedules,

constrains, modifications and upgrades.

(4) It is here clarified, that the feasibility survey shall only serve as a preliminary indication of

the ability to connect, considering the ability to receive and spend energy in the network in

the requested capacity. The feasibility survey does not constitute a commitment by the

Essential Service Provider or any government agents to secure a place in the network or the

connection of the facility to the electricity network. The granting of a conditional license for

a facility shall not prevent the granting of a conditional license for a different facility in the

same area, in spite of any constrain in one of the surveys that may prevent the connection

of the other survey applicant to the network.

(5) The System Manager shall submit a copy of the results of any survey to the Head of the

Engineering Department at the Authority and attach to it the reference of the transmission

license holder specified in sub-close (3) above.

(d) Clarifications of the system manger to the feasibility survey

At the request of the feasibility survey applicant, the system manger shall meet with him to

clarify the results of the feasibility survey not later than 15 work days from the date of

completing the feasibility survey.

(e) Conditions for cancellation or delay of the feasibility survey

(1) The system manger may cancel the feasibility survey for a production license applicant, if it

is not possible to connect the applicant at the location and in the schedules requested by

the survey applicant, due to limitation of the transmission network known from previous

feasibility surveys and other connection made close to the date of the request, subject to

the authorization of the Head of the Engineering Department at the Authority.

(2) The System Manager may not conduct a feasibility survey if the total connected load of

holders of a conditional or fixed rate authorization, plus the connected load of the facility

for which the feasibility survey is requested, is greater than the connected load specified

under the rate quantity and subject to an advance authorization by the Head of the

Engineering Department at the Authority to cancel the requested feasibility survey. The


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System Manager shall request the authorization of the Head of the Engineering Department

at the Authority to cancel the aforementioned survey.

(3) If the System Manager is in the progress of conducting a connection survey for another

facility when the feasibility survey request is submitted, and this survey is likely to have a

direct influence on the results of the feasibility survey as to prevent, in the opinion of the

system manger, a positive reply to the feasibility survey, the System Manager may refrain

from conducting the feasibility survey until the aforementioned connection survey is

completed, and all subject to the authorization of the Head of the Engineering Department

at the Authority. The System Manager shall submit to the Head of the Engineering

Department at the Authority, prior to responding to the aforementioned applicant, the

information showing that the connection survey in progress may affect the results of the

aforementioned feasibility survey.

(4) The System Manager shall reply in writing to the feasibility survey applicant and, at the

request of the feasibility survey applicant, act in accordance with close (d) above within 15

work days from the date of the response to the survey applicant.

(f) Contesting the results of a feasibility survey

(1) The feasibility survey applicant shall be entitled to contest the results of the feasibility

survey in writing by appealing to the Head of the Engineering Department at the Authority

within 15 work days from the date of the meeting with the System Manager specified in

close (d) above, specifying the reasons for his appeal. If a meeting is not scheduled within a

reasonable time frame, the feasibility survey applicant may appeal earlier.

(2) Prior to submitting the appeal to the Head of the Engineering Department at the Authority,

the appellant shall apply to the System Manager regarding the results of the feasibility

survey and the System Manager shall submit a request for payment to the applicant in

accordance with the specified in line 6 of Table of Rates 4.1-1.

(3) If the survey applicant contests the results of the feasibility survey, the System Manager

shall submit to the Head of the Engineering Department at the Authority, within 30 work

days from the date of notification by the Head of the Engineering Department at the

Authority to the System Manager regarding the appeal, a report specifying the explanations

and reasons for the results of the survey accompanied by the details specified in close (c)

above, including the costs of network upgrade required to implement the connection, as

instructed by him, and indicate possible schedules for completing the connection.

(4) If the System Manager does not meet the schedules specified in this decision to submit

information to the Head of the Engineering Department at the Authority as specified in sub-

close (3) above, he shall pay the producer for each additional day of delay the sum specified

in table 12.1-1 (payments for violation of standards), in accordance with the capacity of the

facility requested in the feasibility survey.


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(5) The Head of the Engineering Department at the Authority shall announce his decision

regarding the appeal within 45 work days from the date of receiving all the information

required by him.

(6) If the appeal of the survey applicant is accepted, the payment specified in sub-close (2)

above shall be returned to him.

(g) Publishing the results of feasibility surveys on the website of the System Manager

(1) The system manger shall submit full surveys to the Head of the Engineering Department at

the Authority as soon as they are completed.

(2) The System Manager shall publish on his website updated information regarding feasibility

surveys conducted by him and surveys that are in progress, except for information that is

considered a “commercial secret” and sensitive security information. The published

information shall allow any person to examine the status of surveys at any time, and shall

include the following details:

(a) Connected load and type of the facility for which the survey was conducted;

(b) The geographical area of the transmission system where the survey was conducted;

(c) Requested operation date of the facility for which the survey was conducted;

(d) A list of facilities for which feasibility surveys were requested and are in progress the

date of completing the survey for each of them;

(e) The information on the website of the System Manager shall be updated once a week.

(h) Validity of the feasibility survey

(1) The feasibility survey shall be valid for a period of 9 months from the date of providing the

survey applicant with the results, unless a connection survey is conducted between the date

of completing the survey and the date of issuing the conditional license to the survey

applicant which alters the result provided to the feasibility survey applicant. In this case, the

System Manager shall refer to the feasibility survey applicant and the Head of the

Engineering Department at the Authority and update them in writing regarding the

aforementioned change and its implications for the results of the feasibility survey.

(2) If more than 9 months have passed since an applicant of an affirmative survey received the

feasibility survey and he has not yet received a conditional license, he may apply in writing

to the System Manager and request a ratification since the survey is still valid, with no

additional payment, for the purpose of submitting the survey under the requirements for a

conditional license;


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(3) The System Manager shall review the request and reply to the applicant within 15 work

days. If a reply is not provided within the aforementioned period of time it shall be

considered as a ratification of the feasibility survey under the responsibility of the System

Manager.


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35(e)(5) Preliminary planning works

(1) Subject to the completion of an affirmative feasibility survey, a holder of a conditional

production license or a connection applicant for a production facility meeting the

requirements specified in standard 35(e)(3)(d), shall be entitled to request preliminary

planning works from the System Manager prior to opening a connection file, as follows:

(a) Planning and route tracing for extra-high and ultra-high voltage lines;

(b) Preparing an outline plan;

(c) Preparing an environmental effect survey;

(d) Detailed coordination of line entries to an independent sub-station;

(e) Specification examination for external equipment;

(f) Specification examination for GIS layout;

(g) Specification examination for protections;

(h) Examination of plans until their approval by the System Manager;

(i) Transfer stability examination for planned production units;

(2) The survey applicant or the production license holder shall submit to the Essential Service

Provider any information required to conduct the examinations specified above, and the

planning works shall not be considered as an undertaking by the system manger to reserve a

place in the network for the applicant.

(3) The System Manager shall not collect payment for the preliminary planning works specified

in sub-closes (a) to (d) of close (1) above.

(4) A holder of a conditional license or a connection applicant of a production facility who

opened a connection file shall bear the costs of preliminary planning works, as specified in

sub-close (e) to (i) of close (1) above in accordance with Table of Rates 4.1-1.

(5) Notwithstanding the specified in close (3) above, if a connection applicant cancels the

connection request, he shall bear all the costs involved in the preliminary planning works, as

specified in Table of Rates 4.1-1.

(6) The System Manager shall be entitled to subtract the costs of preliminary planning works

specified in sub-closes (a) to (d) above from a license holder who has paid for a connection

survey and is entitled to a payment refund, as specified in close 35 (e) (6) (d) (4).


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35(e)(6) Connection survey

(a) Conducting a connection survey

(1) A holder of a conditional license, that a planning institution has decided to deposit or to

submit his plan for a facility to review by local committees and to public reservations, shall

apply to the System Manager for the purpose of conducting a final connection survey

(hereinafter: “connection survey”) prior to the actual submission of the plan to review by

local committees and to public reservations. In order to apply for a connection survey, the

license holder shall present the authorization of the planning institution regarding the

aforementioned decision to the System Manager and the head of the licensing department

at the Authority.

(2) For the purpose of conducting the connection survey, and in addition to the details specified

in closes 35 (e) (4) (a) (4) and 35 (e) (4) (b) (1), the holder of a conditional production license

shall submit to the System Manager the following details:

(a) A copy of the conditional license;

(b) Requested schedule for the connection;

(c) General setup in an AutoCAD file in new Israeli co-ordinations, cross sections and

control structure with the measurements of the independent station;

(d) Relevant statutory plan;

(e) Full data for conducting dynamic testing in accordance with a form to be transferred to

the applicant by the System Manager;

(f) Reliability data of the power station in a squares diagram. The diagram shall represent

the production process and include availability data for each main component in the

process;

(g) The configuration of the facility and/or main equipment to be used in the power station,

including gas turbines, steam turbines and generators planned for the facility, as well as

a principle single line diagram. P&ID shall be submitted after the actual deposit of the

plan;

(h) Operational parameters and operating regimes of the planned production facility;

(i) Technical data of the production units in accordance with the requirements of the

System Manager.

(3) If the System Manager requires additional information from the connection survey

applicant, he shall submit an information request to the survey applicant within 14 work

days from the date of providing the details specified in sub-close (2) above.


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(4) The list of additional information required by the System Manager for the purpose of

conducting the survey, as specified in close (3), shall be detailed and final.

(5) After receiving the aforementioned details, the System Manager shall refer to the Head of

the Engineering Department at the Authority and request his authorization to conduct the

applicant’s connection survey. In his request, the System Manager shall also submit for the

approval of the Head of the Engineering Department at the Authority the full basic

assumptions regarding the production facilities and additional essential basic assumptions

to be considered by the System Manager when conducting the survey, and required

additional information.

(6) After receiving the authorization of the Head of the Engineering Department at the

Authority, the System Manager shall deliver a request for payment to the connection survey

applicant for the sum of 10% of the cost of the connection in accordance with the rate

specified in line 1 or line 2 of Table of Rates 4.1-1 under “first connection rate to a

transmission system of 161 kV” or “first connection rate to a transmission network of 400

kV” as the case may be, with the addition of the specified in line 7 of Table of Rates 4.1-1.



(8) The System Manager shall update the Head of the Engineering Department at the Authority

regarding the payment specified in close (6).

(9) A connection survey that is subject to the conducting of another connection survey shall

begin after obtaining the authorization of the Head of the Engineering Department at the

Authority, and the number of days for its completion shall be as specified in standard 35 (e)

(6) (b) (1).

(b) System Manager response

(1) The System Manager shall conduct the survey not later than 60 days from the date of

payment or the possible date according to close (a) (9) above. The survey shall refer to the

applicability of connecting the facility of the connection survey applicant to the transmission

network and to the ability to receive and spend energy in the network in the requested

capacity, among others, specifying the following parameters:

(a) Date of obtaining the required permits for the connection works;

(b) General planning guidelines in accordance with the requirements of the system,

including required changes in the planning of the facility and the type of equipment in

the facility;

(c) Schedule for completing the connection works in reference to the dates requested by

the producer, provided they meet the dates specified in the conditional license;


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(d) The capability of full capacity energy transmission into the network of the planned

production facility, as specified in the conditional license, and the capability of full

capacity consumption required from the network while meeting the requirements of

the system, and all in accordance with the conditional license and the dates specified in

it;

(e) Requirement to upgrade the network in order to receive the production facility and

other facilities planned in the area of the requested connection survey, including

separate schedules for the completion of each work in the network;

(f) The effect of the connection on the survivability and reliability in the network

considering the level of short circuit currents and transference phenomena, the stability

of the network and transference of capacities in the network;

(g) Details of the production facility in the conditional license, including the connected load

and the planned operating regime.

(2) The System Manager shall submit the results the connection survey to the connection

survey applicant within 60 work days from the day of fulfilling the payment specified in close

(a) (6) above or from the possible date of conducting the survey specified in close (a) (9)

above. The response of the System Manager shall be clear and detailed regarding both

schedules and applicability and a copy of it shall be submitted to the Head of the

Engineering Department at the Authority.

(3) For each day of delay in the response of the System Manager to the connection survey

applicant beyond the specified in sub-close (2) and up to 15 work days, the System Manager

shall pay the connection survey applicant the sum specified in Table of Rates 12.1-1

(payments for violation of standards).

(4) For each additional day of delay beyond the 15th day, the System Manager shall pay the

connection survey applicant the additional sum specified in Table of Rates 12.1-1 (payments

for violation of standards), in accordance with the requested capacity in the connection

survey.

(5) The System Manager shall receive a reference in writing from the holder of a transmission

license regarding information relevant for the surveys, including among others, schedules,

constrains, modifications and upgrades, and attach it to the information and the survey

results submitted to the Head of the Engineering Department at the Authority.

(6) If the System Manager decides that the plans submitted by the connection survey applicant

do not meet the requirement of the system, and that as a result the area of the site must be

expanded as well as the area of the connection survey applicant’s outline plan, the survey

applicant shall amend the plans and the day count for completing the survey shall begin


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from the date in which the connection survey applicant submits the new plans meeting the

requirements of the system.

(7) If the system manger establishes any conditions or restrictions in the connection survey, the

Head of the Engineering Department at the Authority shall inform the survey applicant

whether the survey is affirmative or negative.

(8) At the request of the survey applicant, the system manger shall meet with him to clarify the

results of the connection survey not later than 15 work days from the date of completing

the connection survey.

(c) Contesting the results of a connection survey

(1) The connection survey applicant shall be entitled to contest the results of the connection

survey by appealing to the Head of the Engineering Department at the Authority within 30

work days from the date of the meeting with the System Manager specified in close (b) (8)

above, or earlier if a meeting is not scheduled within a reasonable time frame, or from the

date of notification by the Head of the Engineering Department at the Authority to the

license holder specified in close (b) (7), whichever is later, specifying the reasons for his

appeal, and shall forward a copy of his appeal to the System Manager.

(2) Prior to submitting the appeal to the Head of the Engineering Department at the Authority,

the appellant shall apply to the System Manager regarding the results of the connection

survey and the System Manager shall submit a request for payment to the applicant in

accordance with the specified in line 8 of Table of Rates 4.1-1.

(3) As part of the examination of the appeal for the results of the connection survey, the Head

of the Engineering Department at the Authority shall request additional relevant

information from the System Manager required by him to decide in the matter of the appeal

and the system manger shall provide the required information. The System Manager shall

provide the Head of the Engineering Department at the Authority with, among others, data

regarding constrains preventing spending and/or consumption of energy in the production

facility in states N, N-1 and N-2 at the connection dates requested by the survey applicant,

including constrains of operation in peak demand hours, segmentation of consumption

characteristic and constrain and production by demand hour clusters, load percentages of

transmission lines, meeting planning criteria N-1 and N-2, equivalent operation hours, and

scope of the constrain in megawatt hour for each year in which the constrain exists.

(4) If an upgrade is required to network in order to receive the production facility and other

facilities planned in the area of the requested connection survey, the System Manager shall

specify in his reply to the Head of the Engineering Department at the Authority the required

network works with separate schedules for the completion of each work.


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(5) In his reply, the system manger shall also specify the maximum capacity at the intended

location of the production facility able to connect to the network while meeting the

requirements of the system and in accordance with the schedules in his license.

(6) The System Manager shall submit his reply to the Head of the Engineering Department at

the Authority, as specified in sub-closes (3) to (5) above, not later than 30 work days from

the date of the request of information from the System Manager by the Head of the

Engineering Department at the Authority.

(7) If the System Manager does not meet the schedules to submit information to the Head of

the Engineering Department at the Authority as specified in sub-close (6) above, he shall pay

the producer for each additional day of delay the sum specified in table 12.1-1 (payments

for violation of standards), in accordance with the capacity of the facility requested in the

connection survey.

(8) The Head of the Engineering Department at the Authority shall announce his decision

regarding the appeal to the connection survey applicant within 45 work days from the date

of receiving all the information required by him.

(9) The schedules of the connection survey applicant for progress according to milestones and

the requirements of the planning institutions shall be delayed accordingly.

(10) If the appeal of the survey applicant is accepted, the payment specified in sub-close (2)

above shall be returned to him.

(d) Obligation of the System Manager

(1) The System Manager shall reserve a place on the network for the connection survey

applicant whose survey results allow his connection to the network, from the date of

publishing the survey results and for as long as the conditional license is valid, and as long as

the financial closing of the entrepreneur is not extended beyond 30 months, and implement

the connection in accordance with the milestones and schedules in the connection survey.

(2) The Head of the Engineering Department at the Authority shall consider extending the

validity of the connection survey beyond the specified in sub-close (1) in cases where the

milestone for financial closing was extended for the license holder, and considering the

status of other conditional license holders, their milestones, conditions and constrains.

(3) If the milestone for financial closing is extended and the Head of the Engineering

Department at the Authority extends the validity of the connection survey, as specified in

sub-close (2) above, the constrains of other conditional license holders with an affirmative

connection survey, if any exist, shall be transferred to the license holder whose validity was

extended due to the extension of the milestone for financial closing.


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(4) If the statutory plan of the license holder is not approved by the planning institutes after its

deposit, due to objections under the planning procedure, and as a result, the license is

expired, the license holder shall be entitled to a refund of the 10 % advance payment

specified in close (a) (6) above, minus the “rate of conducting a connection survey to the

transmission network” as specified in line 7 of Table of Rates 4.1-1 and the payment for

preliminary planning works specified in close 35 (e) (5).

(5) After providing a mandatory survey, changes to the planned facility resulting in an addition

of more than 5% to the connection size shall be handled as a new and separate request, not

included in the obligation of the System Manager to the connection defined under the

previous connection survey. Changes to the planned facility resulting in a reduction of the

connected load by 50% or more, or an essential change in the location of the switching

premises, shall cause the survey to be canceled and terminate the obligation of the System

Manager to the connection defined under the survey and to conducting a new connection

survey. Essential changes to the planned facility resulting in changes in the voltage level of

the connection to the network, for extra-high or ultra-high voltages shall require submitting

a new request for a survey.

(6) Essential changes to the planned equipment of a facility of a conditional license holder, that

are not changes in the connection voltage or the capacity of the facility, in comparison to

the information submitted for the purpose of conducting the survey in case of a conditional

license holder, shall require updating the System Manager regarding these changes. The

System Manager shall decide whether any information in the connection survey should be

updated accordingly.

(7) A holder of a production license wishing to make changes to a production facility that may

affect the system and require a change in the terms of his production license, or the issuing

of an additional or new production license, but who does not require an increase to the size

of his connection, shall apply to the System Manager for the purpose of conducting a

connection survey.

(8) A license holder who has paid for a connection survey and the connection survey conducted

for him, or his conditional license, were cancelled for any reason, except the reasons

specified in sub-close (4) above, shall not be entitled to a refund of the 10% advance

payment, and if he receives a new conditional license, shall bear the full costs specified in

this decision.

(9) From the date of payment for an additional connection survey and as long as the connection

survey is in progress, the system manger shall not conduct another connection survey that

may affect the results of the connection survey in progress, including in an appeal and as far

as resulting in a negative response to the survey, and shall not conduct an additional

feasibility survey that, in the opinion of the system manger, will receive a negative result if

the connection survey is completed affirmatively.


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(10) It is hereby clarified that the expiration or cancellation of a license, including due to not

obtaining financial closing in the time period specified in license, subject to lawful delays of

dates, shall result in the cancellation of the connection survey and the termination of any

obligations by the system manger specified in this standard.

(11) At the request of the connection survey applicant, the System Manager shall update an

existing connection survey, provided that the license of another conditional license holder,

who has met the requirements of a connection survey affecting the results of the

connection survey of the connection survey applicant, is expired. The connection survey

applicant shall pay for the connection survey the sum specified in line 7 of Table of Rates

4.1-1.

(e) Opening a connection file and payment

(1) The holder of a license shall be entitled to open a connection file with the System Manager

from the date of authorization of the statutory plan and until 14 work days from the date of

the financial closing as defined by the license.

(2) When the connection survey is completed, the System Manager shall attach to his reply a

request for payment for opening a connection file constituting a supplement to 15% of the

cost of the connection, in accordance with the rate specified in lines 1 or 2 of Table of Rates

4.1-1 under the title “first connection rate to a transmission network of 161 kV” or “first

connection rate to a transmission network of 400 kV” as the case may be.

(3) Payment of the aforementioned in sub-close (2) above shall be a prerequisite for opening a

work file at the offices of the Essential Service Provider.

(4) Close 24 (c) regarding payment for services not yet rendered shall apply to the payment

request.

(5) The connection applicant shall not be entitled to a refund in any case of cancellation of the

connection request after the opening of a work file.


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35(e)(7) Agreements

(a) Technical coordination agreement

(1) Once a connection is ordered for a producer or a consumer at the offices of the System

Manager, the transmission license holder and the System Manager shall invite the

connection applicant to a series of technical meetings with relevant professional

representatives for the purpose of forming a technical coordination for connecting the

facility to the network.

(2) The technical coordination of the connection shall contain the details required to fully

implement the connection, including:

(a) Estimated schedule for the progress of connection works until their completion and

commercial operation date in accordance with the results of the connection survey;

(b) Technical details of the equipment type used for the connection and its installation,

safety, meeting relevant standards and installation of metering systems, protection and

communication if required;

(c) For a connection applicant holding a conditional production license: the connection

planning including protection and communication systems if required to maintain the

survivability, reliability and safety of the transmission license holder’s transmission

layout;

(d) Adjustment of extra-high and ultra-high voltage equipment, purchased by the

connection applicant and installed in the switching premises, to the lawful technical and

safety standards and the infrastructure of the transmission license holder;

(e) Allocation of responsibility between the transmission license holder and the connection

applicant regarding the shared systems located in the facility. Control, command and

data transfer interfaces between the System Manager, transmission license holder and

connection applicant;

(f) Defining acceptance and entry into use of the layout on the premises of the connection

applicant including schedules;

(g) The identity of the person responsible for the connection in case of a producer located

on the premises of a consumer shall be as specified in close (f) below.

(h) Durability test of the production units and the production site in the conditions of

connecting the production units to the transmission network.

(i) Setting the communication systems to be used by the system manger and under his

responsibility, and installed on the production premises of the connection applicant and

the switching premises under the responsibility of the transmission license holder, to


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transfer dada between the equipment in the production premises of the connection

applicant and the switching premises under the responsibility of the transmission

license holder and the System Manager.

(j) Adjustment of plans, including extra-high and ultra-high voltage sub-station plans, to

technical and safety standards and to the requirements of the system regarding:

protections, controls, locks, communication (warnings, operations and indications) and

auxiliary systems.

(b) Operation and maintenance agreement

(1) After signing the technical coordination agreement, and not later than 6 months prior to the

start of the acceptance examinations and synchronization of the facility with the network,

whichever is earlier, the transmission license holder and the connection applicant shall sign

an operation agreement and a maintenance agreement for the equipment installed on the

premises of the connection applicant and on premises under the responsibility of the

transmission license holder for a period in accordance with the life expectancy of the

equipment. The System Manager shall also sign an operation and maintenance agreement

for the facility and the equipment on the premises of the connection applicant relevant to

the operations of the System Manager, including communication systems. These

agreements shall include at least the following details:

(a) Definition of the borders of the premises under the responsibility of the transmission

license holder and definition of the borders of the premises under the responsibility of

the connection applicant;

(b) Regulation of the operation and maintenance of the layout on the production site under

the responsibility of the connection applicant and throughout the life of the equipment

on the premises of the connection applicant and the premises of the transmission

license holder;

(c) Regulation of access for employees of the transmission license holder to the switching

premises under the operational responsibility of the transmission license holder and

regulation of access for employees of the connection applicant to the electricity meters;

(d) Operational principles of the switching premises under the responsibility of the

transmission license holder, switching premises under the responsibility of the

connection applicant and production premises of the connection applicant;

(e) Format of the coordination between the System Manager, the transmission license

holder and the connection applicant in defining maintenance dates for the switching

premises of transmission license holder, switching premises of the connection applicant

and production premises of the production license holder;


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(f) Establishing the type of maintenance works to be conducted on the premises under the

responsibility of a connection applicant in an independent facility;

(g) Maintenance of the protections on an extra-high voltage layout to be conducted by the

transmission license holder on the premises under the operational responsibility of the

transmission license holder;

(h) Names of contacts and means of communication by the connection applicant, System

Manager and connection applicant;

(i) Handling requests to upgrade equipment on the premises of the connection applicant

during the term of the agreement;

(j) Definition of the operational means of communication between the System Manager

and the person responsible for the operation of the production units;

(k) Definition of the basic assumptions regarding the operation of the production units;

(l) Definition of the basic assumptions regarding the maintenance of the production units

and the communication system;

(m) Rules of the operational arrangement for purchasing electricity and providing

infrastructure services;

(n) Definition of the operating regime of the production facility in different states (routine,

urgent, emergency, operation in an “island” state);

(o) Method of handling interruptions;

(p) Establishing the operation and report rules between the parties under different

operating regimes: routine, irregular and emergency;

(q) Establishing clear areas of responsibility between the connection applicant and the

transmission license holder regarding operation, maintenance, safety, infrastructure and

auxiliary systems.

(2) Without derogating from the aforementioned in standard 35 (h) (9) (a) (4), the switching

premises under the operational responsibility of the transmission license holder shall be

operated and maintained by the transmission license holder and the transmission license

holder shall be fully responsible for any malfunctions on this premises. The transmission

license holder shall bear all operation and maintenance costs for the premises under his

responsibility.

(c) Schedule for completing the technical coordination agreement and the operational agreement


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The technical coordination agreement shall be completed within 6 months from the date of

opening the connection file. The operation and maintenance agreements shall be completed

and signed not later than 6 months prior to the acceptance examinations and synchronization.

(d) Payment after completing the technical coordination

(1) When the technical coordination is complete, the transmission license holder shall deliver a




connection work.

(2) The connection applicant may choose to pay the supplement to 70% payment in 3 equal

installments in accordance with the valid rate on the date of the first installment, provided

that the last installment shall be made 6 months prior to the acceptance examinations. In

case of a producers who chooses to pay in the equal installments, the second and third

installments shall be linked to the wholesale price index for local areas (including VAT) –

electrical motors and accessories for electricity transmission and shall bear the accountant

general interest.

(3) The last date for this payment shall be not later than 60 days from the date of issuing the bill

and the connection applicant may pay the bill until the last payment date with no linkage

and interest.


in this standard.

(e) Permits and right of way

When planning is completed by any of the parties, each party shall begin to act determinately

and efficiently to obtain all the required authorizations for conducting the connection work. The

System Manager shall be responsible to obtain permits and rights of way for areas in which the

connection applicant has no rights, and shall act to obtain all permits and rights of way required

for conducting the connection work.

(f) Identity of the person responsible for the connection in case of a producer located on the

premises of a consumer

A connection applicant who is a producer located on the premises of a consumer shall inform

the System Manager about the identity of the legal person responsible for the connection of the

facility, producer or consumer. The person responsible for the connection shall sign the

agreements specified in this close and present to the dm and the transmission license holder the

agreement authorizing him to accept responsibility for the connection to the private premises.

The specified in standard 141 (liability) shall apply in accordance with this close.


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35(e)(8) Changing and canceling a request for connection

(a) Changes to a connection request of a consumption facility

A connection applicant of a consumption facility who wishes to make changes to his connection

request shall be entitled to do so by applying to System Manager in writing and specifying the

desired changes. The System Manager shall reply in writing to the connection applicant within

15 work days and specify the costs for the requested changes in accordance with the Table of

Rates 4.1-1 established by the Authority.

(1) As long as a technical agreement is not signed and as long as the request for payment

specified in standard 35 (e) (7) (d) is not sent, a connection applicant for a consumption

facility who wishes to make changes to his connection request shall bear the costs of

additional planning with the authorization of the Head of the Engineering Department at the

Authority, in accordance with the required changes by the Table of Rates for works on

account of others.

(2) After the technical coordination agreement is signed and before the connection work is

completed by the transmission license holder:



operation, subject to the authorization of the Head of the Engineering Department at

the Authority;


connection, the transmission license holder shall refund the total difference due to the

change with accountant general interest.

(b) Changes to a connection request of a conditional license holder

If a connection applicant holding a conditional license wishes to make essential changes to his

connection request after a work file is opened, as specified in standard 35 (e) (6) (e), involving:

(1) An increase of the connection size by more than 5% of the capacity or a decrease of more

than 50% of the capacity in the same voltage;

(2) A change resulting in a change to the incoming and outgoing scheme of lines into the

switching premises;

(3) A change in the location of the sub-station;

(4) An essential change affecting the statutory permits obtained;

(5) A change in the connection voltage;


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The connection survey shall be cancelled and the System Manager shall be relieved of his

obligations, including the obligation to reserve a place in the network due to the results of the

survey, and any payments made for the cancelled survey shall not be refunded to the

connection applicant.

(c) Cancelling a connection request

(1) If the connection applicant cancels his request after making the payment for opening a work

file as specified in standard 35 (e) (6) (e), the transmission license holder shall bill the

connection applicant for any costs incurred by him up to the sum of the advance paid by the

connection applicant as specified in close 35 (e) (6) (e), and the remainder shall be returned

to the connection applicant.

(2) In any case, a connection applicant holding a conditional license or a connection applicant

with a consumption facility shall not be reimbursed for the 10% advance specified in

standard 35 (e) (6) (a) (6) and standard 35 (e) (3) (d) respectively.

(3) A connection applicant for a consumption facility who cancels his request after making the

advance payment specified in standard 35 (e) (7) (d), shall bear the cost of works in

accordance with Table of Rates for works on account of others in extra-high and ultra-high

voltage, up to the sum of the advance paid by him, and the remainder shall be returned to

him.

(4) If the connection applicant cancels his connection request after works by the transmission

license holder were conducted, he shall bear the full cost of the connection, as specified in

Table of Rates 4.1-1, including the last payment specified in standard 35 (e) (10) (b).

(d) A delay in the electrification and synchronization schedule

A transmission license holder shall collect from a holder of a conditional production license who

does not meet the synchronization schedule specified in the technical coordination agreement,

due to any act or neglect by the conditional license holder, the payments specified in Table of

Rates (to be determined).


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35(e)(9) Conducting the connection work

(a) Conducting the connection work and upgrading the connection

If the permits and authorizations of the authorities to conduct the work are received at the

offices of the transmission license holder and the connection applicant has paid the bill specified

in standard 35 (e) (7) (d), the transmission license holder and the connection applicant shall act

determinately and efficiently to complete the connection work as specified below:

(1) The connection applicant shall allocate an area on his private premises for installation of the

equipment required to implement the connection as agreed upon by the parties in the

technical coordination agreement, as specified in standard 35 (e) (7) (a);

(2) The connection applicant shall construct in the area specified in sub-close (1) above a

separation fence dividing his premises into two separate parts. The part in which the

connection point between the network and the switching premises is located shall be

defined as the “switching premises under the responsibility of the transmission license

holder”. The second part shall be defined as the “switching premises under the

responsibility of the connection applicant”. In case where a physical separation is not

possible the parties shall agree on the allocation of responsibility in the technical

agreement;

(3) The connection applicant shall install in both aforementioned premises, at his expense and

according to the technical coordination agreement, the extra-high voltage and high voltage

electrical equipment, means of communication, controls and structures used for the

requested connection;

(4) In the switching premises under the responsibility of the transmission license holder, the

transmission license holder shall bear full responsibility for changing, upgrading, operation,

maintenance and safety of the connection applicant’s equipment throughout the period of

operating the facility, and works shall be conducted by him and at his expense, and in full

coordination with the connection applicant. The responsibility shall include all equipment

except structures, infrastructures and shared systems that will remain under the

responsibility of the connection applicant;

(5) In the switching premises under the responsibility of the connection applicant, the

connection applicant shall bear full responsibility for changing, upgrading, operation,

maintenance and safety of his equipment throughout the period of operating the facility,

and in accordance with the instructions of the transmission license holder due to

requirements to adjust the equipment and its maintenance to the electricity system and in

full coordination with him;

(6) Subject to the circumstances, the connection applicant shall construct a separate entrance

to both aforementioned premises so that each party may enter the area under his


143

responsibility without entering the area under the responsibility the other. If this is not

possible, each party shall allow access to the facility to the other party in accordance with

the agreement between the parties;

(7) In a sub-station of an open or close layout fed by a radial line, the location of the fence shall

be behind the entrance isolator switches. In a sub-station of an open layout fed in the

format of incoming and outgoing, incoming fields, bus bars, and outgoing isolator switches

from the bus bars shall be under the operational, safety and maintenance responsibility of

the transmission license holder. In sub-stations of a closed layout the location of the fence

or the area of the structure of the layout shall at the end of the extra-high voltage layout

and before the transformers and the layout structure shall be under the responsibility of the

transmission license holder;

(8) Notwithstanding the aforementioned in sub-close (7), the agreements signed by the

transmission license holder and the System Manager with the connection applicant shall

allow the connection applicant complete control and command over the transformer fields

in case of an emergency. Regarding a closed layout, this agreement shall also include the

maintenance of the transformer fields and the transformer circuit breakers, and the

connection applicant shall bear the cost of their maintenance;

(9) Only authorized employees of the transmission license holder shall be allowed to enter the

switching premises under the responsibility of the transmission license holder, except in

case of a closed layout and subject to the agreements in sub-close (8) above, as well as the

control and communication room on the switching premises of the connection applicant;

(10) Entry of employees of the transmission license holder into the switching premises under the

responsibility of the connection applicant shall be allowed to the control and

communication room and shall be made in coordination with authorized persons on behalf

of the connection applicant and in their presence;

(11) It is hereby clarified that the connection applicant shall be the sole owner of the equipment

installed by him on both aforementioned premises allocated for the connection. If the

transmission license holder installs additional equipment on the premises under the

responsibility of the connection applicant, the transmission license holder shall be the sole

owner of the additional equipment installed;

(12) The aforementioned shall not prevent a connection applicant, consumer with a connection

or production license holder, as the case may be, and a transmission license holder, to

voluntarily reach an agreement to sell, buy or lease land and/or equipment installed on the

premises of the connection applicant, and a maintenance agreement accordingly. The

transmission license holder shall submit a copy of the aforementioned agreement to the

Head of the Engineering Department at the Authority;


144

(13) A transmission license holder who wishes to purchase equipment, as specified in sub-close

(12), from a connection applicant or a production license holder shall refer to the Head of

the Engineering Department at the Authority to approve the purchase agreement. If the

Head of the Engineering Department at the Authority approves the purchase of the

equipment, the relative part received for the aforementioned purchase shall be deducted

from the rate specified in the rate approval of the license holder;

(14) In case a producer ceases to operate, and subject to the rights of financing bodies, if any

exist, and in accordance with the needs of the system and a request by the transmission

license holder, the Head of the Engineering Department at the Authority shall decide on the

future use of the equipment on the premises under the responsibility of the license holder

and the compensation paid to him by the transmission license holder in case of a purchase

of the aforementioned equipment;

(15) Transferring responsibility for the equipment on the premises under the responsibility of a

consumer or a producer to a transmission license holder shall be made in accordance with

the warranty provided by the supplier of the equipment for a period of 18 months from the

start of the commercial operation of the production or consumption facility, and the

producer or consumer shall be responsible to ensure that the manufacturer’s warranty can

be transferred to the transmission license holder.

(b) Making the facility available for the connection work

Subject to his lawful duties and in accordance with the technical coordination between the

parties, the connection applicant shall make the connection point to the independent power

facility available to the transmission license holder for the purpose of conducting the connection

works or any other arrangement agreed upon by the parties.

(c) Installing additional equipment in a sub-station not for the requirement of the connection

applicant

Subject to the consent of the connection applicant and in accordance with the agreement

between the connection applicant and the transmission license holder, the transmission license

holder may install additional switching equipment in the connection applicant’s sub-station,

whose purpose is not the operation and maintenance of the connection applicant’s facility, or

install a transformer in the sub-station to supply electricity to consumers of an Essential Service

Provider.


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35(e)(10) Completing the connection work

(a) Completing the connection work

A transmission license holder shall complete the connection work, except for examinations

before electrification (hereinafter: “providing voltage to a facility”) in case of a consumer or

providing voltage to a production premises in case of a producer, in accordance with the

schedules specified in the connection survey and subject to the law and the lawful authorization

of the authorities.

(b) Final payment

(1) When the connection work is complete, and voltage is provided in case of a consumer or

voltage to a production premises is provided in case of a producer, the transmission license

holder shall deliver a request for payment to the connection applicant for the remainder

sum completing the payment to 100% of the total cost of the work in accordance with the

valid rate on the date of issuing the bill and linked to the wholesale price index for local

areas (including VAT) – electrical motors and accessories for electricity transmission. The

request for payment shall be delivered to the payer within 15 days from the date of

providing voltage to the facility.

(2) Close 24 (c) regarding payment for services rendered shall apply to the request for payment

specified in sub-close (1) above. A connection applicant that does not fulfill the request for

payment specified in this standard shall not be entitled to an examination of the facility, as

specified in standard 35 (e) (11) below.


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35(e)(11) Examination of a facility and entry into use

(a) Examination of a facility on a switching premises

(1) The technical coordination agreement specified in standard 35 (e) (7) (a) shall also include

details of all required examinations of the facility, including the following:

(a) Division of work between the parties regarding producer examinations, mandatory

examinations through a transmission license holder and mandatory examinations

through an lawfully authorized examiner;

(b) The equipment required for the examinations;

(c) Areas of responsibility between the transmission license holder and the connection

applicant;

(d) Required work teams, including specialists, and any other detail required for the facility

examination as well as schedules;

(e) Information from the connection applicant for the examinations, including equipment

books, board diagrams and detailed electrical diagrams.

(2) The connection applicant and the transmission license holder shall make available to each

other, for the purpose of conducting the facility examinations, any information, equipment

and personnel required to complete the examinations as specified in the technical

coordination agreement.

(3) For facility examinations, including examinations of execution against approved plan,

supervision during the construction of the facility and acceptance and entry into use

examinations, by an examiner authorized by the transmission license holder, the connection

applicant shall pay the sum specified in Table of Rates 4.2-1 under the headline: “mandatory

examinations of a sub-station, required of the connection applicant through a transmission

license holder”. In addition to these examinations, the connection applicant shall be

required to conduct “mandatory examinations through a person lawfully authorized to

conduct them” as defined in this standard, and according to the instructions of the

transmission license holder. If the connection applicant chooses to conduct “mandatory

examinations through a person lawfully authorized to conduct them” through the

transmission license holder, these shall be made in a transaction between a willing buyer

and a willing seller.

(4) When the connection applicant fulfills the request for payment specified in close 35 (e) (10)

(b) and pays for the examinations specified in sub-close (3) above, the facility shall be tested

by the authorized examiner of the transmission license holder, in accordance with the law

and its regulations, within 30 work days from the date of fulfilling the payment specified in

sub-close (3) above. The transmission license holder shall provide, as part of the technical


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coordination agreement, and estimate for the duration of the examinations and their main

milestones.

(5) If an examination of the facility is required in parts, the System Manager and the

transmission license holder, as the case may be, and the connection applicant, shall be

entitled to spread the examinations over a time period different from the time period

specified in the technical coordination agreement. A notification regarding the date of the

examinations shall be submitted by the System Manager and the transmission license

holder, as the case may be, to the Head of the Engineering Department at the Authority.

(6) If the facility in all premises successfully meets all the mandatory examinations through a

transmission license holder and all the mandatory examinations through a person lawfully

authorized to conduct them, the transmission license holder shall attach to the operation

agreement the specification of the examinations and the technical/operational parameters

by which the facility shall be run. A copy of this document shall be submitted to the head of

the licensing and supervision department at the Authority and to the producer.

(b) Repeat examinations

(1) If the authorized examiner of the transmission license holder finds that the electricity facility

does not meet the requirements agreed upon with the connection applicant in the technical

coordination, he shall specify the faults, and the connection applicant shall promptly repair

the faults as soon as they are found in order to allow the examinations to continue.

Payment for repeat examinations shall be as specified in Table of Rates 4.2-1.

(2) At any given moment during the examinations it shall be clear and agreed between the

connection applicant and the transmission license holder who is responsible for the part of

the facility under examination. It is hereby clarified that the examination phase is under the

responsibility of the transmission license holder and the repair phase is under the

responsibility of the client.

(c) Providing voltage to the facility

A transmission license holder shall provide voltage to a facility in coordination with the

connection applicant as soon as the connection applicant meets the following conditions:

(1) Successfully passing the acceptance examination of the facility;

(2) Obtaining the authorization of the authorities for the connection (form 4);

(3) A transmission license holder, the System Manager and the connection applicant have

signed an operation and maintenance agreement for the facility, as specified in standard 35

(e) (7) (b) (operation and maintenance agreement);


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(4) The connection applicant has submitted to the transmission license holder warranty

documents of the equipment on the switching premises of the transmission license holder

and AS MADE diagrams;

(5) The connection applicant has submitted to the transmission license holder authorizations

for examinations conducted for the premises under his responsibility and for the rest of the

facility;

(6) The connection applicant has presented to the transmission license holder all additional

examination certificates required by law;

(7) The connection applicant has acted in accordance with standard 73;

(8) The System Manager has authorized providing voltage to the facility of the connection

applicant.


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35(e)(12) Additional feed and backup line

(a) Existing high or low voltage feed

For the purpose of supply reliability, the connection applicant for the extra-high voltage network

may leave a high voltage or low voltage connection to feed him during the construction period,

and to be used as backup during the operation period, and this shall not incur any cost for the

high voltage or low voltage connection, unless otherwise specified by the Authority.


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35(e)(13) Resolving disputes

(a) Resolving disputes

Any dispute arising from the specified in this standard or its interpretation shall be brought to

the Head of the Engineering Department at the Authority and decided by him.


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Section F: Special Cases

35(f)(1) Irregular connection

(a) Irregular connection

If after the payment of the advance, as specified in close 35 (c) (3) (c) or 35 (d) (3) (d), it is the

opinion of the Essential Service Provider that the requested connection is an irregular

connection, he shall act as follows:

(1) The Essential Service Provider shall inform the connection applicant in writing, not later than

10 work days from the date of payment of the aforementioned advance, regarding the need

to conduct a thorough examination to determine whether the connection is irregular. He

shall attach to his notification the following documents:

(a) A specification of the reasons for his opinion that the requested connection is an

irregular connection;

(b) A copy of this standard;

(c) An estimate of the cost based on the rates determined by the Authority;

(d) A standard obligation form for payment for the connection works in the rate approved

for an Essential Service Provider by the Head of the Engineering Department at the

Authority, in accordance with Table of Rates 4.4 (works on account of others);

(2) If the connection applicant signs the obligation form to continue the connection works, as

specified in close (a) (1) (d) above, within 15 work days, the Essential Service Provider shall

continue to act in accordance with the milestones specified in section C of this standard:

“low voltage connection” or section D: “high voltage connection”. If the connection

applicant does not sign the obligation form to continue the connection works, the

aforementioned works shall be paused. The period of pause shall not count for the number

of days specified in the technical coordination for the connection work under standard

section C: “low voltage connection” or standard section D: “high voltage connection”;

(3) The Essential Service Provider shall review the connection request, among others, according

to the following details:

(a) Location of the requested connection;

(b) Size of the requested connection;

(c) Voltage of the requested connection;

(d) Location of the nearest existing network, indicating the distance of the connection from

the network, with an attached scaled map, specifying the borders of the lot of the


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requested connection and all existing and planned electricity infrastructures, based on

the relevant national, regional or local outline plan;

(e) Projected consumption or production and expected future growth in electricity demand

or in electricity production, for the facility for which the connection is requested, as well

as other demands and supplies, as a result of residential, industrial, commercial and

electricity production development in the area of the requested connection for the next

20 years according to relevant outline plans;

(f) Designation of the area and region of the requested connection according to the

definitions chapter of the combined national outline plan for building, development and

preservation (NOP 35);

(g) The investment required to implement the requested connection, including establishing

distribution networks in the shortest possible path and standard connection cost

calculation in accordance with Table of Rates 4.2 or 4.3, depending on the voltage of the

requested connection;

(h) The load coefficient of the requested connection;

(i) Type of expected rate for the connection applicant;

(j) List of items from the tables of rates for works on account of others that the Essential

Service Provider request adding them to the rate of the requested connection;

(k) Active requests for other connections for the network suggested for the requested

connection;

(l) Location of the nearest distribution transformer to the connection applicant and the

need for a transformer in order to carry out the connection;

(4) Subject to the approval of the Head of the Engineering Department at the Authority, as

specified in close (b) below, that the requested connection is an irregular connection, the

connection applicant shall bear the cost of establishing the network, in addition to the

connection cost specified in chapter 4 “connecting to the network” of the Book of Rates, as

follows:

(a) The Essential Service Provider shall collect from a connection applicant to a high or low

voltage consumption facility the rate of establishing a high voltage network as specified

in Table of Rates 4.4 (works on account of others), except for the cost of establishing the

network length specified by the following formula:

Where:


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L = length of a new high voltage network whose cost shall be incurred by the

connection applicant (in meters).

M = length of high voltage network from the nearest existing network to the

connection point of the transformer from which the connection applicant is to

be fed (in meters).

THV = rate of infrastructure for energy transmission in high voltage lines established by

the Authority (in NIS per kWh).

AC = expected average annual consumption of the consumption facility depending on

the connection size (kWh per year).

HVNC = normative cost per km of high voltage line established by the Authority (NIS per

km).

(b) An Essential Service Provider shall not collect payment from a connection applicant for a

high or low voltage consumption facility for the establishment of a low voltage line or a

distribution transformer and shall be required to adjust this infrastructure to the size of

the requested connection;

(c) The Essential Service Provider shall collect from a connection applicant for a high

voltage production facility who is a producer of renewable energy payment for the

establishment of a high voltage network, as specified in Table of Rates 4.4 (works on

account of others), except for the cost of establishing the network length specified in

the following table:

Requested connection size (kW) New established high voltage network length (m)

631 1,500 1,000 2,200 2,000 4,400 3,000 6,500 4,000 8,500

5,000 and above 11,000

(d) The Essential Service Provider shall collect from a connection applicant for a low voltage

production facility who is a producer of renewable energy payment for the

establishment of a high voltage network and designated transformer required for the

connection of the facility to the network, as specified in Table of Rates 4.4 (works on

account of others);

(e) The Essential Service Provider shall collect from a connection applicant for a low or high

voltage production facility who is a producer of conventional or cogeneration energy

payment for the establishment of a new network required for the connection of the


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facility to the network, as specified in Table of Rates 4.4 (works on account of others),

minus any expected capitalized infrastructure rate payments to be paid by the

connection applicant during the life span of the facility;

(5) The Essential Service Provider shall submit the following results of the examination with his

recommendation to the Head of the Engineering Department at the Authority, with a copy

to the consumer, not later than 20 work days from the date of the notification specified in

close (a) (1) above:

(a) The information on which the Essential Service Provider relies, as specified in close (a)

(3) above, and according to the information form in supplement 1 of this standard, as

well as any other information on which the Essential Service Provider has relied.;

(b) The supplements specified in the supplements form for the request specified in

supplement 2 of the standard;

(6) Notwithstanding the aforementioned in close (a) (5), if the Essential Service Provider finds

when the examination is complete that the requested connection is not an irregular

connection, he shall continue to act without delay in accordance with section C of this

standard: “low voltage connection” or section D: “high voltage connection”.

(b) Decision of the head of the engineering department

(1) The Head of the Engineering Department at the Authority shall decide within 20 work days

from the date of receiving the results of the examination, as specified in close (a) (5), and

receiving all the information required by him, whether the connection is an irregular

connection or not, and his decision shall be delivered in writing to the Essential Service

Provider and the connection applicant.

(2) The decision of the head of the engineering department shall be rely on the data specified in

closes (a) (3) (a) to (a) (3) (l) and shall be based on a criterion of an expected return of the

cost of investment of the new established network.

(3) The remaining irregular connection work shall be made in accordance with section C of this

standard: “low voltage connection” or section D: “high voltage connection”; and the

remaining network work shall be made in accordance with chapter G section A: “works on

account of others” of the book of standards.

(c) Failure of the Essential Service Provider to meet schedules

If the Essential Service Provider does not meet the schedules specified in this standard or the

schedules agreed upon between him and the connection applicant, or if the decision of the

Head of the Engineering Department at the Authority is delayed due to failure to submit all the

documents and information specified in close (a) (5) above, the Essential Service Provider shall

pay the connection applicant the sum specified in Table of Rates 12.1-1 for each day of delay.


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(d) Bill for an irregular connection

In addition to the specified in standard 23, a bill for an irregular connection shall also include the

following details:

(1) Normative cost of a connection of the requested connection size;

(2) Cost of each additional network items for which the connection applicant shall be billed, as

specified in chapter 4.4 of the tables of rates;

(3) Deduction of advances paid.


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Supplement 1 to the standard – irregular connection information form

Irregular connection information form

Connection request 1 Connection request 2 Connection request 3

Order no.

Order date

Name of connection applicant

Connection size (ampere)

Connection voltage (volt)

Minimum network length required from existing network to the connection location

Date of notifying the connection applicant that the Essential Service Provider is required to check whether the connection is irregular. Standard 35(f)(1)(a)(5)

Expected future growth of electricity demand by the connection applicant for the next 20 years

Expected future growth of electricity demand in the region for the next 20 years

Designation of the area of the requested connection

Blocks and lots where the planned network passes

Estimate of the cost of establishing the network according to normative cost of a km line

Normative connection cost according to tables


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of rates 4.2 and 4.3

Consumption type

Expected consumption


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Supplement 2 to the standard – irregular connection supplement table

Irregular connection supplement table

Required additions Supplement no. Serial no.

Network planning diagram/map

Mark the location of the connections A

Mark the borders of private lots

Mark attached outline plans

Blueprint and approved or deposited regional outline plan of the planned network path area

Mark existing network path, planned network path and connection location

B

Blueprint and approved or deposited local outline plan of the planned network path area


C

Blueprint and NOP 35 of the planned network path area


D

Attached letters Specify: name of sender; addressee; subject; notes

E

Notes


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35(f)(2) Special connection

(a) Special connection

If it is the opinion of the Essential Service Provider that the requested connection submitted to

him is a special connection, he shall refer to the Head of the Engineering Department at the

Authority and request to consider the connection as a special connection in accordance with the

following:

(1) The Essential Service Provider shall inform the connection applicant in writing, not later than

5 work days from the date of payment of the advance specified in sub-close 35 (c) (3) (c) (1)

or 35 (d) (3) (d) (1), regarding his intention to refer the Head of the Engineering Department

at the Authority with the aforementioned request. The Essential Service Provider shall

attach to his notification a standard obligation form for payment for the connection works in

the rate approved by the Head of the Engineering Department at the Authority or by the

plenum of the Authority;

(2) If the connection applicant signs the obligation form to continue the connection works,

within 10 work days, the Essential Service Provider shall continue to act in accordance with

the milestones specified in section C of this standard: “low voltage connection” or section D:

“high voltage connection”. If the connection applicant does not sign the obligation form to

continue the connection works, the aforementioned works shall be paused. The period of

pause shall not count for the number of days specified in the technical coordination for the

connection work;

(3) The Essential Service Provider shall apply to the Head of the Engineering Department at the

Authority with a reasoned request including all required documents within 10 work days

from the day of notifying the connection applicant, and shall specify in his request if the

connection applicant has signed the obligation note;

(4) The Essential Service Provider shall transfer a copy of his letter to the Head of the

Engineering Department at the Authority to the connection applicant.



from the date of receiving the application of the Essential Service Provider, whether the

connection is a special connection, and shall notify the Essential Service Provider and

connection applicant in writing about his decision.

(2) If the Head of the Engineering Department at the Authority decides that the connection is a

special connection, he shall act to establish a proper rate by the plenum of the Authority.

(c) Failure of the Essential Service Provider to meet schedules


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If the Essential Service Provider does not meet the schedules specified in this standard or the

schedules agreed upon between him and the connection applicant, or if the decision of the

Head of the Engineering Department at the Authority is delayed due to failure to submit all the

documents and information specified in close (a) (3) above, the Essential Service Provider shall

pay the connection applicant the sum specified in Table of Rates 12-1 for each day for delay.


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35(f)(3) Irregular connection

Definitions:

“Irregular connection to extra-high voltage” – a connection involving the establishment of a

designated network with a greater length than the length specified by the formula in standard

“irregular connection to extra-high voltage” in an area where future development of demand and

supply of electricity from the network does not exist according to approved outline plans, and

subject to the specified in the standard.

(a) Irregular connection to extra-high voltage

(1) Prior to completing the feasibility survey, the System Manager shall check whether the

length of the new network to be established for the connection of the facility is greater than

the specified by the following formula:

2**

*

KTP

PCLL

Where:

L = length of the new network for the new connection (km)

CL = the overall existing length of extra-high voltage network circuits in the system (km)

P = capacity of the constructed station (megawatts)

TP = overall connected load in system sub-stations (MVA)

K = capacity multiplier of the station

(2) The System Manager shall inform the Head of the Engineering Department at the Authority,

with a copy to the survey applicant, regarding any deviation. The following information shall

be attached to his notification:

(a) Details regarding the existing network in the area of the requested survey, indicating

the distance of the connection from the network, with an attached scaled map,

specifying the borders of the lot of the requested connection and all existing and

planned electricity infrastructures in the area, based on the relevant outline plans;

(b) List specifying the length of each of lines of the new network to be established in order

to receive the facility of the feasibility survey;

(c) Estimate of construction cost for new required network line;

(d) Specification of other feasibility surveys that may use the new lines;


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(e) Estimated future growth in electricity demand and supply in the area of the requested

survey, as a result of power stations, residential, industrial and commercial

development in the area for the next 20 years according to relevant outline plans.



from the date of receiving all the information required by him, whether the connection is an

irregular connection or not, and his decision shall be delivered in writing to the System

Manager and the connection applicant.

(2) In his decision, the head of the engineering department may also consider the following

parameters:

(a) Type of technology of the station and supply;

(b) Cost of the new network to be established;

(c) Expected future development of the network in the area;

(d) Possibility of an alternate connection diagram, including to a different voltage than

requested;

(e) Expected contribution of the facility to the reserves, survivability or supply reliability of

the system;

(3) If the Head of the Engineering Department at the Authority decides that the connection is

irregular, the System Manager shall specify in the survey an estimate of the full additional

cost of connecting the facility;

(c) Obligation of the survey applicant

If the Head of the Engineering Department at the Authority decides that the survey applicant

must bear the cost of constructing and upgrading the network, the survey applicant shall sign an

obligation form for the payment for network works within 15 work days, as a prerequisite for

obtaining a conditional license.

(d) Failure of the Essential Service Provider to meet schedules

If the Essential Service Provider does not meet the schedules specified in this standard or if the

decision of the Head of the Engineering Department at the Authority is delayed due to failure to

submit all the documents and information specified above, the Essential Service Provider shall

pay the survey applicant the sum specified in Table of Rates 12-1 for each day of delay.

(e) Bill for an irregular connection

A bill for an irregular connection shall include the following details:


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(1) Normative cost of a connection of the requested connection size;

(2) Cost of the new network to be established for which the connection applicant shall be billed,

as specified in the tables of rates for works on account of others;

(3) Deduction of advances paid.


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Chapter D: Supply Reliability

Section A: Rolling Power Cuts

36. Power cuts and power supply interruptions

(a) Power cuts

The Essential Service Provider may cut the supply of electricity to his facilities in the following

cases:

(1) The power cut is necessary in order to conduct operations that are required by the terms of

the supplier’s license as prescribed by law, including the provisions specified in close 46 (a)

of the Law;

(2) The supplier believes that the electricity demand exceeds or may exceed the supply capacity

of its facilities in a way that may be harmful to them;

(3) If the supplier is required by law or by the order of a competent authority to cut the power.

(b) Renewing the supply of electricity

When the works for which the power is cut are completed, the Essential Service Provider shall

renew the power supply as soon as possible and in accordance with these standards.


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37. Power cut notification

(a) Power cut notification

The Essential Service Provider shall inform the consumer about any power cut in accordance

with the provisions of standard 5.

(b) Power cut without notification

Notwithstanding the above, the Essential Service Provider may cut the supply of electricity for a

period not longer than 60 minutes without notification, as specified above, provided that risk of

bodily harm or damage to property exists or may exist, or that the power cut is required for the

purpose of efficiency and energy saving.

(c) Method of notification delivery

Power cut notifications shall be delivered by the following method:

(1) Notifications shall be delivered in writing and posted in a visible location at the entrance to

structure where the meter referred by the notification is located. If the structure has more

than one entrance, notifications shall be posted in each entrance. The Essential Service

Provider may deliver the notification to high and extra-high voltage consumers by other

means. In these cases, the Essential Service Provider shall ensure that the consumer

receives the notification by recording delivery details, name if the recipient and his role;

(2) Consumers who are not Load and Time Rate consumers and Load and Time Rate consumer

of the classes specified in sub-close 31 (a) (2) and close 31 (b) shall receive notification not

later than 7 work days prior to the date of the planned power cut, but not earlier than 48

hours prior to the planned power cut;

(3) Load and Time Rate consumers of the classes specified in sub-close 31 (a) (1) shall be receive

notification not later than 14 work days prior to the date of the planned power cut, but not

earlier than 5 work days prior to the planned power cut;

(4) In case of an event that is beyond the control of the Essential Service Provider and that due

to this event the power cut may not be initiated at the planned time, the Essential Service

Provider may delay the delivery of notifications until 12:00 on the day before the planned

power cut;

(5) Power cut notifications shall include the date of the power cut, the beginning time of the

power cut, the end time of the power cut and the reason for the power cut. The Essential

Service Provider shall take every measure to end the power cut on the dates specified in the

notification as early as possible.

(d)


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In any case of violation of these standards, the Essential Service Provider shall compensate the

consumer by the amount specified in Table of Rates 12.1-1 (payment for violation of standards).


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38. Power cut cancelation notification

(a) Cancelation notification

The Essential Service Provider shall notify the consumer about the cancelation of a power cut by

notification, as specified in close 37 (c).

(b) Time of notification

The cancelation notification shall be delivered to the consumer not earlier than 24 hours prior to

the time of the planned power cut.

(c) Exemption from cancelation notification

If the cancelation of the power cut is due to reasons beyond the control of the Essential Service

Provider less than 24 hours prior to the time of the planned power cut, the Essential Service

Provider may shall be exempt from the obligation to delivery notifications, as specified in close

38 (c).


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39. Notification of electricity supply renewal after a power cut or a prolonged interruption

(a) Consumers requesting not to be connected to the electricity network with the renewal of

electricity supply after a power cut or a prolonged interruption

(1) High and extra-high voltage consumers, who wish not to be connected to the electricity

network with the renewal of electricity supply after a power cut or a prolonged interruption,

may request notification from the Essential Service Provider regarding the renewal of

electricity supply to their facilities. Consumers who request this service should be have the

technical means to disconnect and connect to the electricity network, so that the electricity

supply to the consumer is not automatically renewed with the renewal of supply.

(2) Consumers shall pay for this service the fixed payment specified in line 26 of Table of Rates

5.4-2.


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Section B: Renewal of Electricity Supply

40. Renewal of electricity supply

(a) Conditions and schedules for renewal of electricity supply

When the electricity supply of a consumer is disconnected, the Essential Service Provider shall

renew the electricity supply under the following conditions and schedules:

(1) If the electricity supply has been disconnected due to debt, and the reason for the

disconnection of the supply no longer exists before 17:30 on the same day, the connection

shall be restored before 24:00 on the same day;

(2) If the electricity supply has been disconnected due to debt, and the reason for the

disconnection of the supply no longer exists after 17:30 on the same day, the connection

shall be restored before 12:00 on the next day;

(3) If the electricity supply has been disconnected for a different reason and that reason no

longer exists, the connection shall be restored within 6 hours from the time of being notified

by the consumer on the matter.

(b) Renewal of electricity supply disconnected due to debt

If the consumer requests that the electricity supply if renewed after its disconnection due to

debt, he shall pay the Essential Service Provider the cost of the disconnection and renewal of

electricity supply, as specified in lines 11 and 12 of Table of Rates 5.4-2.

(c) Cause for disconnection existing for over two years

In cases of repeating illegal use of electricity, in cases where a consumer who is disconnected

reconnects himself independently or in cases where the cause for disconnection continues to

exist for over two years after the disconnection, the Essential Service Provider may dismantle

the connection, provided that the consumer has not been bill a fixed payment for the

consumption location. Once per year, the Essential Service Provider shall report to the Authority

about consumption locations where the connection infrastructure has been dismantled and the

lifespan of the infrastructure.

(d) Request to reconnect the electricity supply more than two years after its disconnection

A consumer / real estate owner holding a premises that requests to reconnect the electricity

supply to the consumption location more than two years after its disconnection, shall be

charged as follows:

(1) If the meter has not been removed and the connection line has not been dismantled – the

charge shall be in accordance with the cost of reconnection, as specified in line 11 of Table


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of Rates 5.4-2, and in accordance with cost of a facility examination, as specified in tables

4.3-1, 4.3-2 and 4.3-3 of the Book of Rates;

(2) If the meter has been removed but the connection line has not been dismantled – the

charge shall be in accordance with the cost of reconnection, as specified in line 11 of Table

of Rates 5.4-2, the cost of meter installation, as specified in line 9 of Table of Rates 5.4-2 and

the cost of a facility examination, as specified in tables 4.3-1, 4.3-2 and 4.3-3 of the Book of

Rates;

(3) If the meter has been removed but the connection line has been dismantled – the charge

shall be in accordance with the cost of a new connection, as specified in the tables of rates

for new connections specified by the Authority.


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Section C: Supply Methods

41. Quality of power

(a) Terms relating to the measurement of the quality of power

The following parameters, among others, shall be examined in order to test the quality of

power:

“Frequency” – the number of cycles per second of the basic current wave;

“Supply voltage” – the R.M.S. values of the voltage at the connection point;

“Voltage flicker” – electrical instability caused by a series of repetitive variations in the voltage

waveform;

“Voltage imbalance” – a condition in a three-phase system where the R.M.S. values of the

voltage lines or the phase difference between two adjacent phases are not equal;

“Total harmonic distortion of the voltage/current” – is the percentile ratio between the

distorted voltage/current wave and the fundamental voltage/current wave, and is equal to the

square root of the sum of the powering of the individual voltage/current harmonics up to the

40th harmonic. The total harmonic distortion level definition depends on the rigidity of the

supply source at the point of common coupling (PCC), as shown in table 10.3 of the IEEE STD

519-1992 standard. The measurement of the source rigidity is the ratio between the short

circuit current and the load current, and between the allowed level of distortion in percentages

and the odd harmonics;

“Interruptions” – in this standard, in addition to the specified in chapter A of the Book of

Standards;

“Temporary interruption” – an event where the supply voltage is lower than its nominal value

by 5% for a period of between 20 milliseconds and 3 minutes;

“Dip” – a momentary drop of the supply voltage to between 5% and 90% of its nominal value for

a period of between 20 milliseconds and 3 minutes;

“Swell” - a momentary rise of the supply voltage to over 110% of its nominal value for a period

of between 10 milliseconds and 1 minute.

(b) Voltage limits

The Essential Service Provider shall provide its consumers with stable electricity within voltage

limits not exceeding ±10% of the following nominal voltages:

(1) In a private electricity facility connected to a low voltage network, the feeding voltage

between phases shall be 400 volts;


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(2) In a private electricity facility connected to a high voltage network, the feeding voltage shall

be 3.6 kV or 11 kV or 12.6 kV or 22 kV or 33 kV, depending on the existing voltage of the

high voltage network to which the consumer is connected;

(3) In a private electricity facility connected to an extra-high voltage network, the feeding

voltage shall be 110 kV or 160 kV or 400 kV, depending on the existing voltage of the extra-

high voltage network to which the consumer is connected.

(c) Changes to the supply voltage

An Essential Service Provider that wishes to change the nominal voltage level of the consumer

shall act as follows:

(1) The Essential Service Provider shall inform the consumer and coordinate with him in

advance any changes to the nominal voltage of electricity supplied to the consumer, and

shall allow the consumer to prepare to the change within a reasonable time;

(2) The Essential Service Provider shall adjust the consumer’s facility to the new intended

voltage;

(3) The Essential Service Provider shall bear all costs involved in the voltage change and derived

from it, and the consumer shall incur no charges, including the cost of changes to his private

facility.

(d) Supply frequency

The Essential Service Provider shall provide its consumers with electricity in a nominal frequency

of 50 Hz and within a frequency range of 47 – 52.5 Hz.

(e) Connection of motors and electrical appliances

(1) If a consumer wishes to connect a motor with a nominal power of more than 3.5 hp or a

different appliance with a nominal power of more than 75.5 kW, the facility shall be

connected to the network by the Essential Service Provider using three-phase supply.

(2) If the power of the aforementioned motor is lower than 3.5 hp, the Essential Service

Provider shall connect the facility using a single-phase supply or a three-phase supply, at the

choice of the consumer.

(3) The Essential Service Provider shall not connect to the network a private facility with a

single-phase motor with a power greater than 3.5 hp or three-phase motor with a power

greater than 5 hp, if it is not equipped with a suitable current reducing starter.

(f) Phase balance in the consumption facility

(1) Consumers fed by a three-phase supply shall be responsible for the phase balance at all

times.


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(2) If the Essential Service Provider discovers phase imbalance in the consumer’s facility it shall

notify the consumer in writing, and the consumer shall act to remedy the imbalance within a

reasonable time after receiving the aforementioned notification.

(g) Capacity coefficient

(1) The Essential Service Provider shall inform new consumers whose meter allows the

measuring of a capacity coefficient, about a deviation rate due to a low capacity coefficient,

as specified in Table of Rates 5.7-1, and about what he should do in order to improve the

capacity coefficient.

(2) If the Essential Service Provider finds that the capacity coefficient in a private electricity

facility is lower than 0.92, it shall notify the consumer in writing about the capacity

coefficient measured at his private facility and the added cost to the consumer due to a low

capacity coefficient, in accordance with the billing increments specified in Table of Rates

5.7-1 (rate increment for capacity coefficient), and shall bill the consumer in accordance

with rate specified in the aforementioned table.

(h) Electrical values of the electricity network – obligation of the Essential Service Provider

The Essential Service Provider shall operate his electricity network so that it meets the following

accumulated electrical values:

(1) The electrical characteristics defined in IS 50160;

(2) The addition specified in table 1 of supplement 1 of this standard;

(3) The addition specified in table 2 of supplement 1 of this standard.

(i) Electrical values of the electricity network – consumer service conditions

(1) The Essential Service Provider shall ensure that its consumers do not deviate from the level

of current harmonic distortion, as specified in table 3 of supplement 1 of this standard.

(2) If the Essential Service Provider finds that the consumer deviates from the aforementioned

level of harmonic distortion, it shall issue a report relating to the at least the following

requirements:

(a) Description of the examined facility;

(b) Specification of the monitoring location and the measuring equipment, including

monitoring dates;

(c) Specification of all findings relevant to the quality of power, including: current, voltage,

voltage imbalance, capacity, capacity coefficient, frequency, total harmonic distortion

level of the current and the voltage, voltage dips/swells with a waveform diagram for


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the critical points, harmonics and interharmonics deviations in the voltage and the

current, short and long range flicker level and any transient phenomena, if sampled;

(d) Conclusion and recommendations and a notification to the consumer with a request to

remove the source of the interruption as much as possible.

(3) The Essential Service Provider shall deliver the report to the consumer, with a copy to the

Head of the Engineering Department at the Authority.

(4) If the Essential Service Provider notifies the consumer about the interruption and requests

the removal of the source of the interruptions, the consumer shall act to remove the source

of the interruption within a reasonable time after receiving the aforementioned notification.

(j) Measuring method and measuring equipment

(1) The method for measuring the electrical values of the electric parameters, interruptions and

distortions specified in close (a) above shall be in accordance with the provisions of close

5.2.2.2. of IS 50160.

(2) The measuring equipment for electrical values shall be in accordance with IS 961 part 12.43.

(k) Compensation to consumers by an Essential Service Provider for power quality interruptions

(1) The condition for submitting a request for compensation from an Essential Service Provider

for damages to devices owned by the consumer, in accordance with standard 48, is that the

consumer requesting the compensation shall submit to the Essential Service Provider a

written request in accordance with the provisions specified in standards 49 (a) and 49 (d). in

addition, the consumer shall attach the following details to his request:

(a) Identification of the consumption location;

(b) Description of the deviation;

(c) Time of the deviation;

(d) Details of the damaged electrical equipment;

(e) Details of a contact person for the matter of the complaint;

(f) Relevant technical information;

(g) Any measurement data available to him, including the measuring method and

equipment.

(2) The Essential Service Provider shall examine the source of the interruption causing the

damages. If, in the opinion of the Essential Service Provider, the source of the interruption is

a third party, the Essential Service Provider shall deliver to the aforementioned consumer a


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report specifying the findings of the examination, including information regarding the

quality of power and the source of the interruption as registered at the time of the event. If

the source of the interruption is in the Essential Service Provider’s network, the Essential

Service Provider shall act in accordance with standard 49.

Table 1: Number of voltage dips – maximum annual values of number and duration of dips

Time (in

millisecond

s)

Residual

voltage

(percentag

e) ↓

10≤t≤200 200<t≤500 500<t≤1,000 1000<t≤5,000 5000<t≤60,000 Total

90>u≥80 162 8 5 10 10 195

80>u≥70 64 8 4 2 2 80

70>u≥40 38 8 2 2 2 52

40>u≥5 12 8 2 2 2 26

Total 276 32 13 16 16 353

Table 2: Number of voltage swells – maximum annual values of number and duration of swells

Time (in milliseconds)

Voltage rise (percentage)

↓

≤t≤50010 <t≤5,000500 5000<t≤60,000 Total

u≥120 50 30 10 90

120>u>110 100 50 30 180

Table 3: Current harmonic distortion level – percentage of maximum current harmonic distortion level

TDD Above 35 Up to 35 Up to 23 Up to 17 Up to 11 number of

harmonics

Current ratio ↓

5 0.3 0.6 1.5 2 4 Under 20

8 0.5 1 2.5 3.5 7 Under 50


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12 0.7 1.5 4 4.5 10 Under 100

15 1 2 5 5.5 12 Under 1000

20 1.4 2.5 6 7 15 Above 1000


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Section D: Sheddings

42. Frequency shedding

(a) Conditions for receiving rate or payment in a “frequency shedding” arrangement

(1) the Essential Service Provider shall charge its consumers for electricity consumption 97% of

the relevant electricity consumption rate for consumers, and shall pay the consumer

through a private transaction, in accordance with Table of Rates 1, for every reduced kWh

(hereinafter: “frequency shedding rate arrangement”), under the following conditions:

(a) the minimum ordered connection size of the consumer’s facility is 3 MW and the

minimum load coefficient is 60%, or any other size in accordance with the following

formula:

(b) The consumer has several facilities that do not meet the requirements of sub-close (a)

above, but the sum of their combined connection sizes is not smaller than 25 MW.

Consumers meeting this condition shall have a single relay installed by the supplier, and

any remaining relays shall be installed at the cost of the consumer in according with the

specifications authorized for the Essential Service Provider;

(c) The consumer has submitted a request to join a frequency shedding rate arrangement

before 1 October of every calendar year and has agreed to the terms of the

arrangement in the frequency shedding rate arrangement entry form in close 42 (f)

below (hereinafter: “the consumer request”);

(d) The total sum of the connection sizes of consumers under the arrangement does not

exceed 600 MW;

(e) If the total sum of the connection sizes of consumers requesting to join the arrangement

is greater than 600 MW, the Essential Service Provider shall determine their inclusion in

the frequency shedding rate arrangement based on maximum benefit, in accordance

with the formula in sub-close (a) above;

(f) The Essential Service Provider approves the consumer’s request before 1 November of

the year in which the request is submitted.

(2) If any of the conditions for joining the arrangement as specified above are no longer met,

the Essential Service Provider shall be entitled to promptly cancel the arrangement with

consumer.

(3) The Essential Service Provider shall notify the consumer in writing about the approval or

rejection of his request and specify its reasons in case of a rejection.


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(4) The Essential Service Provider shall submit to the head of the engineering department

copies of any requests made by consumers and its replies to them not later than 5

November of each year. If the Authority approves a consumer’s request that has been

rejected by the Essential Service Provider, the Essential Service Provider shall inform the

consumer about the approval of his request. Regarding sub-close (1) (f) above, a consumer’s

request approved by the Authority before 20 November shall be considered as a consumer’s

request approved by the Essential Service Provider before 1 November of the year in which

the request has been submitted.

(5) A consumer that is found eligible for a frequency shedding rate shall be eligible from the 1st

of the month following the submission of his request and until the end of 12 calendar

months (hereinafter: “a year”). The period for handling his eligibility shall not be longer than

3 months from the date of submission of the request.

(b) Disconnection of electricity supply to a consumer under the “frequency shedding”

arrangement

(1) the Essential Service Provider may, without prior notice, stop the supply of electricity to a

consumer under the frequency shedding arrangement who has chosen one of the following

three shedding groups, and subject to the operational considerations of the national

supervision center manager at the Electric Corporation:

(a) The supply of electricity shall be stopped up to 15 times per year according to a three

year average, and renewed within 10 minutes. In any case, the electricity supply shall

not be stopped more than 30 times per year;

(b) The supply of electricity shall be stopped up to 12 times per year according to a three

year average, and renewed 15 minutes. In any case, the electricity supply shall not be

stopped more than 24 times per year;

(c) The supply of electricity shall be stopped up to 9 times per year according to a three

year average, and renewed 20 minutes. In any case, the electricity supply shall not be

stopped more than 18 times per year.

(2) In addition to choosing one of the fixed plans specified in close (b) above, consumers,

including consumers in a private transaction, may join a complementary shedding plan

(hereinafter: “the additional plan”) under the following conditions:

(a) The supply of electricity shall be stopped up to 4 times per year in the period between 1

June 2013 and 1 May 2014. The supply of electricity shall be renewed within 60 minutes

in each shedding;

(b) The Essential Service Provider shall pay consumers under this plan a fixed payment

according to the formula specified in close (f) of standard 47a (“voluntary shedding


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arrangement for large electricity consumers”), with a prior notice time of less than 30

minutes;

(c) Consumers who are interested in joining the additional plan shall coordinate the

method of operating the facility during a shedding event with the System Manager,

before 10/6/2013, by remote control by the System Manager or by the consumer,

including the installation of means of communication if required to ensure the

disconnection of the consumption facility and provided that the disconnection of the

consumer’s facility is continuous from the beginning of any shedding event until its end.

(3) Subject to the aforementioned in sub-close 42 (a) (1 (b), the Essential Service Provider shall

install a frequency relay as required for the operation of the arrangement at the

consumption location, at its own expense, and shall be responsible for its regular

maintenance. However, if the supplier is unable to install the relay, for reasons relating to

the facility, the relay shall be installed by the consumer.

(4) Consumers may request to coordinate the renewal of electricity supply, as specified in

standard 40 (renewal of electricity supply), and shall not bear any additional costs due to

this request.

(5) If more than two automatic sheddings are conducted in a facility, in two different demand

hour clusters, and no effective reduction is registered in the consumption load, the Essential

Service Provider shall promptly cancel the arrangement with the consumer and charge him

the regular rate from the date of the first aforementioned shedding for which no load

reduction was registered.

(6) In case of a private consumer under the arrangement, the shedding shall not be counted

towards meeting the half hour consumption plan during the shedding event.

(c) Compensation to consumers for violation of the frequency shedding standard

(1) Without derogating from the provisions of this standard specified above and below, for

every deviation from the number of sheddings allowed by the shedding group of the

consumer, the Essential Service Provider shall pay the consumer in accordance with

following formulas:

(a) Compensation to the consumer for deviation from the number of allowed sheddings by

a three year calculation:

(b) Compensation to the consumer for deviation from the annual number of sheddings:


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(2) Without derogating from the provisions specified in close 42 (a) (5), consumers who join this

arrangement for a period shorter than three years shall not be eligible for compensation for

violation of standard 42 (c) (1) (a).

(3) Consumers in a private transaction shall receive compensation in case of a deviation, as

specified above, in accordance with the rate of shedded kWh.

(d) Level of reliability in a “frequency shedding” arrangement

(1)

(a) Consumers joining a frequency shedding arrangement are entitled to a level of reliability

in terms of minutes of no supply that shall not be above 600 accumulated minutes of no

supply per consumer in a calendar year. For this purpose, minutes of no supply for any

reason shall be counted, including no supply due to load shedding under the

arrangement, but excluding any rolling power cuts made at the request of the consumer

or rolling power cuts made for the purpose of maintenance when the consumer is on

the line.

(b) If the supply of electricity is renewed in coordination with the consumer, as specified in

sub-close 42 (b) (3), the minutes of no supply shall be considered for the purpose of sub

close (1) (a) above as if the connection was done automatically.

(2) The Essential Service Provider may apply to the Authority and request that minutes of no

supply due to events approved in retrospect by the Authority as irregular shall not be

counted for the purpose of sub-close (1) (a) above.

(3) Consumers for whom the number of minutes of no supply exceeds the number specified in

sub-close (1) above shall be charged by the Essential Service Provider a reduced payment

received by subtracting the sum given by the following formula from the payments due by

the consumer for electricity consumption in March of the following year:

For this purpose, the price of low kWh relevant to the consumer in accordance with his

consumption voltage shall be considered as the price on 1 March of the same year.

(4) The System Manager shall compensate private consumers under the arrangement for

excess minutes of no supply as specified in Table of Rates 1.

(5) The Essential Service Provider shall deliver to any consumer for which the sub-frequency

shedding rate has applied in the previous year a report regarding the minutes of no supply,

as specified in sub-close (1) above, not later than 1 March of the following year.

(e) Reporting to the Authority


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(1) The Essential Service Provider shall submit an annual sub-frequency shedding arrangement

report to the Authority not later than 1 February of each year.

(2) The annual frequency shedding arrangement report shall contain the following information:

(a) Regarding any consumer eligible for a frequency shedding rate: name of the consumer,

name of the high or extra-high voltage line feeding the consumer, names of other

consumers fed by the same line (expressed in terms of the consumers’ cumulative

connected load);

(b) Regarding frequency sheddings carried out: date, start time, end time, total connected

load stopped, cause of the shedding;

(c) Regarding the number of minutes of no supply to the consumer: the number of minutes

of no supply reported for each consumer, in accordance with sub-close 42 (c) (4),

specification of irregular events approved by the Authority, in accordance with sub-close

42 (c) (4).

(f) Proper shedding and installation

Consumers shall not receive any compensation for damages if the shedding and installation of

the relay are properly carried out.

(g) Entry form

The form of entry into a frequency shedding arrangement shall be as follows:

To: the Israel Electric Corporation Request to join a shedding arrangement and an agreement to the terms of the arrangement (in accordance with standard 42 (frequency shedding)) Name of the consumer ……………………………………………….. Total annual consumption …………………………………………… Total capacity for shedding ………………………………………….. Load coefficient …………………………………………………………… Consumer of supplier …… (supplier details) ………………… Applicable consumption rate for ESP consumer (by voltage type) ………………………………… If the consumer is interested in a number of shedding points: Number of shedding points ………………………………………… Regarding the largest shedding point: connection size …………… load coefficient …………… Regarding the smallest shedding point: connection size …………… load coefficient ……………

1. The consumer herby submits a request to join a frequency shedding arrangement (hereinafter: “the Arrangement”).

2. The consumer’s entry into the arrangement shall be as follows: a. The supply of electricity shall be stopped up to 15 times per year according to a three year

average, and renewed within 10 minutes. In any case, the electricity supply shall not be stopped more than 30 times per year.


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b. The supply of electricity shall be stopped up to 12 times per year according to a three year average, and renewed 15 minutes. In any case, the electricity supply shall not be stopped more than 24 times per year.

c. The supply of electricity shall be stopped up to 9 times per year according to a three year average, and renewed 20 minutes. In any case, the electricity supply shall not be stopped more than 18 times per year.

d. The additional plan: the supply of electricity shall be stopped 4 additional times per year for 60 minutes each time.

3. The consumer herby declares that he is aware that the details of the arrangement are determined by the Public Utilities Authority – Electricity in standard 39 (publish in P.A. 5106 of 28 August 2002, p. 3839) or in any other standard that will replace it.

_______________ _______________ Consumer signature Date


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43. Voluntary shedding by operation of independent generators

In this standard:

“Generator” – an emergency generator used as a full or partial alternative to the electricity supply

provided by the Essential Service Provider’s network during its interruption, as defined by law;

“The arrangement” – an arrangement to reduce electricity consumption form the network at peak

hours or for any other acute need of the network, by means of voluntary shedding from the network

and the operation of a generator, as defined in this standard.

(a) Eligibility to join the arrangement

Consumers meeting all of the following conditions may submit a request to join the

arrangement:

(1) The consumer is connected to the Essential Service Provider’s electricity network;

(2) The consumer has a generator with a power between 250 kW and 5 MW;

(3) The consumers holds a permit to operate the generator, as required by the Electricity Law,

1954, and its regulations, as well as a statement confirming that he holds any other permit

that may be required by law for the operation of the generator specified in the

arrangement. The consumer shall present theses permits at the request of the supplier;

(4) The consumer does not hold a production license or a supply license;

(5) The consumer signs an undertaking not to operate the generator for more than 100 hours

per year, in accordance with the requirements of the Essential Service Provider delivered to

him 4 hours in advance by phone, fax or electronic mail, or by any other means required to

ensure the timely delivery of the notification;

(6) The entry into the arrangement shall be for a period of not less than one year and shall

remain valid unless cancelled by the Essential Service Provider, as specified in close 43 (e)

below, or, alternatively, unless the consumer decided to leave the arrangement, as specified

in close 43 (k) below;

(7) To dispel any doubt, it is hereby clarified that the entry into the arrangement by the

consumer shall not cast any responsibility on the Essential Service Provider regarding the

operation of the generator by the consumer under the arrangement.

(b) Submitting a request

Eligible consumers interested in joining the arrangement shall apply to the Essential Service

Provider in writing, specifying the following information:

(1) Name and address of the consumer;


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(2) Permanent electronic mail address;

(3) Voltage of the network to which the consumer is connected;

(4) Connection size of the consumer’s facility;

(5) Rated power of the generator;

(6) Copy of the permits for operating the generator;

(7) Specification of the protection and control measures for the operation of the generator;

(8) The synchronization method of the generator with the network, if available.

(c) Installation of a continuous meter

(1) If the Essential Service Provider finds that the consumer meets the conditions specified in

close 43 (a), it shall install a meter at the consumer’s premises not later than 14 work days

from the date of receiving the consumer request at its offices, as follows:

(a) The meter installed at the consumer’s premises shall be a continuous meter allowing

remote reading through a phone line;

(b) The meter shall be install at the terminals of the consumer’s generator;

(c) All the required preparations for the installation of the meter shall be made by the

consumer and at his expense;

(d) The consumer shall provide the supplier with a phone line for remote readings.

(2) If a continuous meter is installed at the terminals of the consumer’s generator, the Essential

Service Provider may approve its working order and use it for the arrangement, provided

that it does not deviate from the schedules specified in this standard.

(3) The date of installation of a meter at the consumer’s premises, or, alternatively, the date of

approval of a meter already installed at the consumer’s premises, shall be considered as the

date of entering into the arrangement.

(d) Informing the Authority

The Essential Service Provider shall notify the authority about every consumer who joins the

arrangement and shall specify the name of the consumer, his e-mail address, the date of entry

into the arrangement and the capacity size.

(e) Rejecting a request and cancelling the arrangement

(1) The Essential Service Provider may reject a request to join the arrangement or cancel an

existing arrangement if the consumer does not meet the conditions specified in close 43 (a).


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(2) Without derogating from the general provisions specified in sub-close (a) above, a deviation

of up to 10% from the number of hours specified in sub-close 43 (a) (5) shall not be

considered cause for cancellation of the arrangement by the Essential Service Provider. Not

operating the generator on Saturdays and Israeli holydays shall not be counted in the

aforementioned 10%.

(3) If the Essential Service Provider rejects the request of a consumer to join the arrangement,

or notifies a consumer about the cancellation of his arrangement, it shall specify the reasons

for the rejection or cancellation in his notification.

(4) The Essential Service Provider shall deliver a copy of its notification, in accordance with sub-

close (3) above, to the Authority.

(5) Consumers who receive a notification of cancellation or whose request is rejected may

apply to the Head of the Engineering Department at the Authority and request his

examination of the matter. The decision of the head of the engineering department shall

oblige both the consumer and the Essential Service Provider.

(6) If the head of the engineering department decides that the consumer should be allowed to

join the arrangement, the Essential Service Provider shall inform the consumer in writing

about the decision and act in accordance with the provisions of these standards regarding a

consumer who joins the arrangement.

(f) Rate arrangement

(1) If the consumer wishing to join the arrangement is a consumer that did not enter into

contract with a private producer in an aforementioned private transaction, the Essential

Service Provider shall allow the consumer to choose between the rate arrangement

specified below in sub-close (g) “rate incentives”, and the rate arrangement specified below

in sub-close (h) “real time shedding rates”.

(2) If the consumer joining the arrangement is a consumer that entered into contract with a

private producer in a private transaction, as defined in standard 1, the rate arrangement

specified blow in sub-close (h) “real time shedding rates” shall apply to him.

(3) If the System Manager finds it necessary to operate the generators of consumers under the

arrangement for more than 100 hours per year, he shall apply in advance to the Authority

for authorization to increase the number of operating hours under the arrangement.

(4) If the Authority authorizes additional hours to the number of hours specified above, the

System Manager may instruct consumers under the arrangement to operate generators for

the additional number of hours established by the Authority. To clarify, the instructions of

the System Manager to operate generators for an additional number of hours shall not alter

the obligations of the consumer specified in close (a) (5) of this standard.


186

(5) For any additional hours, the Essential Service Provider shall pay the consumer under the

arrangement the rate specified in close (f) (2) or (g) (2) below, as the case may be.

(6) A consumer in a private transaction shall not be considered to be deviating from the

consumption plan of the supplier from which he is purchasing electricity for the operation of

a generator in accordance with the arrangement.

(7) The System Manager may operate a consumer under the arrangement for less than 4 hours,

but not less than 2 hours, in each event.

(g) Incentive rates

Cancelled.

(h) Real time shedding rates

The following rate arrangement shall apply to consumers who join the arrangement and give

their written and signed consent to this rate track, as specified in close (f) (2) above:

(1) The Essential Service Provider shall undertake to require the operation of the generator by

the consumer for 100 hours per year, in accordance with the sole discretion of the System

Manager;

(2) In the hours in which the Essential Service Provider requires the operation of the generator,

as specified in sub-close (a) (5) above, the consumer shall be entitled to reduced

consumption charges for each kWh produced by the generator, in accordance with the high

voltage rolling peak demand hour cluster rate, as specified in Table of Rates 5.2-2 (load and

time rate for consumers in a rolling peak arrangement);

(3) The size of the reduction shall be the number of kWh produced multiplied by the rate

specified in close (2) above, minus the basic production component specified in Table of

Rates 6.3-1;

(4) Consumers under the arrangement may choose a notification time shorter than 4 hours, in

accordance with the notification times specified in the table in standard 47a (voluntary

shedding arrangement for large consumers), and shall be entitled to the rate specified in

close (f) (1) of the aforementioned standard. If the consumer does not meet the notification

time chosen by him, he shall pay the System Manager as follows:

(a) If q ≤ 0 for a notification time between 2 hours and 1 hour (α = 60%), the consumer shall

pay the System Manager QB*PC*(0.1);

(b) If q ≤ 0 for a notification time under 1 hour (α > 60%), the consumer shall pay the

System Manager QB*PC*(0.3).

(i) Indication of the reduction in the consumption bill


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The Essential Service Provider shall indicate in the consumption bill delivered to consumers

under the arrangement, in accordance with the provisions of close 22 (a), the following details:

(1) Total energy consumed from the network;

(2) Total kWh produced by the generator;

(3) The sum of the reduction due to the incentive rate for each hour the generator produced

alternative energy for consumption from the network;

(4) Final amount due;

(5) Settlement for the arrangement specified in sub-close 43 (f) (6) above shall be indicated

separately and emphasized.

(j) Consumer objections regarding a consumption bill

If the consumer has any objections to the consumption bill because of matters relating to the

settlement under this standard, he shall appeal to the Authority’s ombudsman to resolve the

issue.

(k) Leaving the arrangement

(1) Consumers may leave the arrangement only after one year from the date of joining the

arrangement by delivering a written notification to the Essential Service Provider.

(2) If a consumer notifies the Essential Service Provider about his wish to leave the

arrangement, the Essential Service Provider shall remove the meter installed at the

consumer’s premises not later than 7 days from the date of receiving the notification at the

offices of the supplier.

(3) The date of removing the meter, or, in case no meter was installed by the Essential Service

Provider, the day of receiving the notification at the offices of the supplier, shall be

considered as the day of leaving the arrangement.

(4) Consumers who leave the arrangement and later wish to re-join it shall bear the cost of

meter removal and installation, as specified in line 9 of Table of Rates 5.4-2.

(l) Reporting to the authority

Once per year, on 28 February, the Essential Service Provider shall submit copies of the

consumption bills of consumers under the arrangement to the Authority. The Essential Service

Provider may submit the aforementioned copies with the personal details of consumers deleted.


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Supplement A

Statement regarding the holding of permits to operate a generator

I, the undersigned, __________ I.D. number __________, approved signatory on behalf of __________

(hereinafter: “the consumer”), holder of a generator with the number __________ (hereinafter: “the

generator”), request to enter into the Authority’s arrangement in accordance with standard 43

(voluntary shedding by operation of independent generators), and hereby declare and undertake in

writing as follows:

1. The consumer holds all the necessary permits required by law to operating the generator.

2. The generator located at a distance of __________ meters from any residential areas, tourist

and leisure areas, commercial areas, public buildings or other land uses that attract audiences.

3. The generator is operated by diesel oil for transportation only.

4. The generator shall be operated in accordance with the law, including and specifically the

Abatement of Nuisances Law, 1961, and the Clean Air Law, 2008. In case of suspicion of strong

or unreasonable air pollution, I am aware that the Ministry of Environmental Protection may

request the consumer to conduct an environmental survey, including calculation of polluters

spread.

__________ __________ __________

Name + Signatory’s signature Corporation Stamp Date

I, the undersigned, __________ advocate (L.N. __________) of __________ Street, confirm that on

__________ Mr. / Mrs. / Miss __________ indentified by I.D. no. __________ / who is personally known

by me, appeared in my presence and after being cautioned by me that he must state the truth or

otherwise be liable to the penalties prescribed by law, has confirmed the truthfulness of his statement

and signed it in my presence.

__________

Advocate


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44. Voluntary shedding by means of a rolling peak

(a) Essence of the arrangement

(1) Consumers joining a rolling peak arrangement shall be charged for regular consumption in

accordance with the rate specified in Table of Rates 5.2-2 (LTR for consumers in a rolling

peak arrangement).

(2) The entry into the arrangement shall be for a period of not less than one year.

(3) Every Thursday, the Essential Service Provider shall publish on its internet site the forecast

for any rolling peak demand hour cluster events during the upcoming week.

(4) The Essential Service Provider shall inform consumers under the rolling peak arrangement,

not less than 4 hours in advance, about a rolling peak demand hour cluster and the expected

duration of the demand hour cluster, which shall not exceed 4 hours.

(5) For consumption during hours in which the Essential Service Provider has announced a

rolling peak demand hour cluster, the Essential Service Provider shall charge the consumer

in accordance with the rolling peak demand hour cluster rate specified in Table of Rates 5.2-

2.

(6) If the Essential Service Provider notifies consumers under the rolling peak arrangement

about any actual rolling peak demand hour cluster less than 4 hours in advance, it may only

charge the consumer under the rolling peak rate arrangement in accordance with the

relevant peak, high or low demand hour cluster rate specified in Table of Rates 5.2-2 (LTR

for consumers in a rolling peak arrangement) valid at the time of the event.

(7) The total number of hours the Essential Service Provider may designate as a rolling peak

demand hour cluster shall not exceed 100 per calendar year.

(8) A consumers who joins the rolling peak arrangement, and whose total payments to the

Essential Service Provider in accordance with Table of Rates 5.2-2 (LTR for consumers in a

rolling peak arrangement) during the first 12 months of consumption after joining the

arrangement is more than the total payments he would have paid for the aforementioned

period in accordance with Table of Rates 5.1-2 (LTR rates), shall be entitled, subject to his

removal from the arrangement, to have his payments recalculated by the Essential Service

Provider in accordance with Table of Rates 5.1-2 (LTR rates) and to a deduction of the

balance from his annual electricity bill.

(b) Eligibility to join the arrangement

Consumers meeting the following conditions may be included by the Essential Service Provider

in the rolling peak arrangement:


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(1) The consumer is connected to an Essential Service Provider’s low voltage, high voltage or

extra-high voltage electricity network and is charged by an LTR rate;

(2) The consumer’s connection benefits the network according to the following formula:

(3) The sum of the consumer’s consumption in a summer peak demand hour cluster during the

calendar year prior to joining the arrangement is over 4% of his total consumption in the

aforementioned calendar year;

(4) The total sum of the connection sized of consumers under the arrangement at the time of

submitting the request to join the arrangement does not exceed 500 MW.

(c) Submitting a request

Eligible consumers interested in joining a rolling peak arrangement shall apply to the Essential

Service Provider, specifying the following information:




(4) Connection size of the consumer’s facility (the ESP shall calculate the benefit in accordance

with the formula specified above);

(5) Available phone number of the consumer.

(d) Installation of a continuous meter

(1) If the Essential Service Provider finds that the consumer meets the conditions specified in

close 44 (b) above, it shall inform the consumer about his eligibility to join the arrangement,

and install a continuous meter allowing remote reading (hereinafter: “the continuous

meter”) at the point of the consumer’s connection to the network, as follows:

(a) The Essential Service Provider shall instruct the consumer to perform all the necessary

preparations, including the allocation/installation of a phone line, for the purpose of

installing the continuous meter by the Essential Service Provider and at its expense;

(b) The Essential Service Provider shall install the aforementioned continuous meter not

later than 14 work days from the date of receiving the consumer’s notification that the

preparations are complete.


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(2) If a continuous meter is installed at the consumer’s connection point, the Essential Service

Provider may approve its working order and use it for the arrangement, provided that it

does not deviate from the schedules specified in this standard.



date of entering into the rolling peak arrangement.

(e) Rejecting a request and cancelling the arrangement

(1) The Essential Service Provider may reject a request to join the arrangement or cancel an

existing arrangement if the consumer does not meet the conditions specified in close 44 (b)

above.

(2) If the Essential Service Provider rejects the request of a consumer to join the arrangement,

or notifies a consumer about the cancellation of his arrangement, it shall specify the reasons


(3) The Essential Service Provider shall deliver a copy of its notification, in accordance with sub-

close (2) above, to the Authority.






join a rolling peak arrangement, the Essential Service Provider shall inform the consumer in

writing about the decision and act in accordance with the provisions of these standards

regarding a consumer who joins the arrangement.

(6) The Essential Service Provider shall remove from the rolling peak arrangement, after 12

months of being under the arrangement, consumers who choose the settlement and

deduction specified in standard 44 (a) (8).

(f) Leaving the rolling peak arrangement

(1) Consumers may leave the rolling peak arrangement only after one year from the date of

joining the arrangement.

(2) Consumers wishing to leave the rolling peak arrangement shall notify the Essential Service

Provider in writing at least 30 days before the date of leaving the arrangement.


arrangement, the Essential Service Provider shall remove the meter installed at the


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consumer’s premises not later than 7 days from the actual date of leaving the arrangement,

as specified in sub-close 44 (f) (4).


Provider, the 31st day after receiving the consumer’s notification at the offices of the

supplier, shall be considered as the actual date of leaving the arrangement, and after this

date the Essential Service Provider shall charge the consumer in accordance with the

applicable consumption rate before joining the rolling peak arrangement.

(5) Consumers who leave the rolling peak arrangement and later wish to re-join it shall bear the

cost of meter removal and installation, as specified in line 9 of Table of Rates 5.4-2.

(g) Reporting to the authority

(1) The Essential Service Provider shall inform the authority about each consumer who joins the

rolling peak arrangement, specifying the name of the consumer, his electronic mail address,

the date of joining the arrangement and the joining capacity size.

(2) In February of each year, the Essential Service Provider shall submit the following

information to the Authority:

(a) The number of consumers under the arrangement;

(b) A specification of the hours per year in which a rolling peak demand hour cluster has

been declared;

(c) Monthly level by demand hour clusters (including consumption in a rolling peak demand

hour cluster) of the consumers under the arrangement;

(d) The aggregated connection sizes of all the consumers under the arrangement;

(e) Financial savings to consumers in comparison with TLR rates;

(f) An estimate of the reduction in electricity demand by each participant in the

arrangement as a result of the arrangement, calculated as follows:

(1) An arithmetic mean of the energy consumed by the consumer in the first hour

before implementing the rolling peak and the energy consumed by him in the first

hour after the end of the rolling peak;

(2) The total energy consumed by the consumer during the rolling peak;

(3) The number of hours of the rolling peak;

(4) The electricity demand reduction estimate shall be calculated as the difference

between the result of sub-close (1) multiplied by sub-close (3) and the result of sub-

close (2).


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194

45. Periodic demand reduction arrangement and efficient consumption


An TLR consumer whose private facility consumption in a peak demand hour cluster, during a

period determined by the decisions of the Authority from time to time, is lower by 20% or more

than the consumption in a peak demand hour cluster during a parallel period in the previous

calendar year, shall be entitled to a reduction in the consumption rate of the peak demand hour

cluster for this period of 10%, subject to meeting the terms specified in this standard below.

(b) Terms of the arrangement

A TLR consumer, as specified in close (g) below, who has reduced the consumption in his private

facility in a peak demand hour cluster, during the period specified in close (g) (2), by 20% or

more, in comparison with a peak demand hour cluster in a parallel period in the previous

calendar year, shall be considered as meeting the terms of the arrangement.

(c) Rate for consumers under the arrangement

(1) For consumption in a peak demand hour cluster during the period of the arrangement, a

consumer who meets the terms of the arrangement shall be entitled to a consumption rate

of 90% of the relevant peak demand hour cluster rate according to his connection voltage.

(2) The Essential Service Provider shall provide consumers who meet the terms of the

arrangement with the reduced consumption rate not later than in the second consumption

bill issued to the consumer at the end of the period of the arrangement.

(3) To dispel any doubt, it should be emphasized that the period for determining the eligibility

of the consumer to a reduced rate shall be the entire duration of the arrangement and parts

thereof.

(d) Indication of the reduction in the consumption bill

The Essential Service Provider shall specify, not later than in the second consumption bill

following the end of the arrangement period determined by the Authority, and in accordance

with the provisions of close 22 (a), the following details:

(1) Total consumption by the consumer during the arrangement period and the total

consumption by the consumer during a parallel period in previous calendar year;

(2) The differences between Total peak demand hour cluster consumption by the consumer

during the arrangement period and the total peak demand hour cluster consumption by the

consumer during a parallel period in the previous calendar year;

(3) The sum deducted from the consumption bill;


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(4) The final due payment;

(5) Any settlement as part of the arrangement shall be indicated separately and emphasized.

(e) Interest for delayed payments

For any delay in payment to the consumer, as specified in close (c) (2) above, under this

arrangement, the Essential Service Provider shall pay the consumer the interest for delay

determined by the accountant general of the treasury and published from time to time.

(f) Reporting to the Authority

Within one month of delivering the consumption bills specified in close (c) (2) above, the

Essential Service Provider shall submit to the Authority the following information:

(1) A quantitative report referring to the arrangement period for the current year and for the

previous year regarding the quantities of consumption in kWh during the arrangement

period and the peak demand under the arrangement compared to the projected peak

demand;

(2) The number of consumers eligible for a reduction under the arrangement by their

consumption type and rate type;

(3) The amount of kWh reduced by consumers eligible for a reduction under the arrangement

by their consumption type and rate type;

(4) The total rate in NIS paid to each consumption type and rate type;

(5) The total capacity saved in MW for each consumption type and rate type.

(g) Application

(1) Consumers meeting the following conditions may be included by the Essential Service

Provider in the arrangement:

(a) The consumer was an TLR consumer at the time of entry into force of this standard and

during the entire parallel period on the calendar year preceding the entry into force of

this standard;

(b) The consumer has not joined a “Voluntary shedding by operation of independent

generators” arrangement or a “ Voluntary shedding by means of a rolling peak”

arrangement after the beginning of the parallel period on the calendar year preceding

the entry into force of this standard;

(c) The consumer is not under a private transaction with an Independent Power Producer;


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(d) The consumer is directly connected to the electricity network and not only to a

production facility of a producer in his premises.

(2) The arrangement specified in this standard shall be valid from 9/5/2005 until 9/9/2030.


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45a. Periodic demand reduction arrangement and efficient consumption for consumers in a

20/20 unified rate


A consumer charged in accordance with a unified domestic rate or a general unified rate who

has joined this arrangement with the Essential Service Provider, and that the meter is registered

to him (for the purpose of this standard: “the registered consumer”), whose consumption

during a period determined by the Authority from time to time is lower than the consumption

specified below regarding consumption during a parallel period on the previous calendar year,

shall be entitled to a reduction in the consumption bill for this period, as specified in this

standard.

(b) Terms of the Arrangement

(1) Consumers interested in joining the arrangement shall register with the Essential Service

Provider through the web site established by the Essential Service Provider for this purpose,

or through a call center, as specified in standard 7b, before 1/7/2012.

(2) The Essential Service Provider shall reply to registered consumer and inform him about the

billing periods relevant to the arrangement, his consumption in kWh in the previous year

and the amount of consumption he will be required to reduce during the arrangement in

order to be eligible for a reduction (herein the saving reference point).

(3) A reply to the registered consumer shall be delivered by electronic mail not later than 24

hours after the time of the request, or by phone, as specified in standard 7b.

(4) Only consumers under a domestic or general unified rate who were connected to the

electricity network by the Essential Service Provider prior to 31/5/2011 are eligible to join

the arrangement.

(c) Rate for consumers under the arrangement

(1) For a consumption reduction of 15% to 20% of the consumption in parallel billing periods in

the previous calendar year, the consumer shall be entitled to a 10% reduction of his

electricity rate for the periods in which the consumption in the meter registered to him is

reduced by 15% to 20%.

(2) For a consumption reduction of 20% to 30% of the consumption in parallel billing periods in

the previous calendar year, the consumer shall be entitled to a 20% reduction of his

electricity rate for the periods in which the consumption in the meter registered to him is

reduced by 20% to 30%.


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(3) A registered consumer who reduces his consumption during the arrangement period by

more than 30% in comparison with the parallel period in the previous calendar year shall

not be entitled to a reduction of his electricity rate.

(4) The monthly consumption shall be calculated according to the billing period. Nevertheless,

the Essential Service Provider may adjust the dates of the billing period in the previous

calendar year to correspond to the billing period of the arrangement, by calculating the

average daily consumption of a consumer meeting the terms of the arrangement. To clarify,

for the purpose of determining the bills for comparison with the previous year, bills best

corresponding to the period of the arrangement shall be considered, and therefore, it is

possible that consumption beyond the period of the arrangement shall be taken into

account.

(d) The consumption bill

The Essential Service Provider shall provide consumers who meet the terms of the arrangement

with the reduced consumption rate not later than in the second consumption bill issued to the

consumer at the end of the period of the arrangement. Credit shall be provided in accordance

with the relevant amount of kWh registered during the period in which consumption has been

reduced and valid rates at the time of consumption plus Accountant General Interest. The

Essential Service Provider shall also specify, in addition to the provisions specified in close 22 (a),

the following details:

(1) Total consumption by the consumer during the arrangement period and the total

consumption by the consumer during a parallel period in previous calendar year;

(2) The differences between total consumption by the consumer during the arrangement

period and the total consumption by the consumer during a parallel period in the previous

calendar year;

(3) The sum deducted from the consumption bill;

(4) The final due payment;

(5) Any settlement as part of the arrangement shall be indicated separately and emphasized.

(e) Interest for delayed payments

For any delay in payment to the consumer, as specified in close (d) above, under this

arrangement, standard 6 shall apply.

(f) Settlement between the distributer and a holder of a transmission license

(1) At the end of the arrangement period, an Essential Service Provider holding a distribution

license shall deliver to an Essential Service Provider holding a transmission license a report


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regarding the sum of recognized payments made by it to his consumers under the

arrangement.

(2) An Essential Service Provider holding a transmission license shall bear the cost of payments

made by it plus the Accountant General Interest before 31/12/2012.

(g) Reporting to the Authority

Within one month of delivering the consumption bills specified in close (d) above, but not later

than 1/1/2013, the Essential Service Provider shall submit to the Authority the following

information, referring separately to consumers under a domestic unified rate and consumer

under a general unified rate:

(1) A quantitative report referring to the arrangement period for the current year and for the

previous year regarding the quantities of consumption in kWh during the arrangement

period and the peak demand under the arrangement compared to the projected peak

demand. The report shall be submitted to the Essential Service Provider with a statement

signed by the consumer and confirmed by a lawyer. The statement shall specify the total

consumption during the period of the arrangement, the total saving in kWh, The number of

consumers eligible for a reduction and an irrevocable undertaking to transfer the sum of the

reduction, immediately upon its reception by it, to the eligible consumers in the premises;

(2) The number of consumers eligible for a reduction under the arrangement by their

consumption type and rate type;

(3) The amount of kWh reduced by consumers eligible for a reduction under the arrangement

by their consumption type and rate type;

(4) The total rate in NIS paid to each consumption type and rate type;

(5) The total capacity saved in MW for each consumption type and rate type.

(h) Application

(1) The arrangement shall not apply to consumers connected to the electricity network after

31/5/2011.

(2) The arrangement specified in this standard shall be valid from 1/6/2012 until 20/9/2030.


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46. Voluntary shedding by operation of independent generators and selling energy to the

network

In this standard:

“Generator” – an emergency generator used as a full or partial alternative to the electricity supply

provided by the Essential Service Provider’s network during its interruption, including a generator of

an independent producer;

“The arrangement” – an arrangement to manage electricity consumption from the network at times

of need, by means of operating generators concurrently with the network and providing energy to

the network.


(1) The consumption and production facilities of the consumer are required to be synchronized

with the network and to reduce consumption from the network or sell excess energy to the

network, in accordance with the instructions of the System Manager.

(2) The System Manager shall instruct consumers with a diesel operated generator to operate

the generator under the arrangement for a total of 100 hours per year, and the consumer

shall operate the generator in accordance with the instructions of the System Manager.

(3) The System Manager shall instruct consumers with a fuel oil or gas operated generator to

operate the generator under the arrangement for a total of 100 hours per year, and the

consumer shall operate the generator in accordance with the instructions of the System

Manager.

(4) The net reduction of consumption from the network shall be calculated by the amount of

consumption from the network and independent production, from the time of applying the

arrangement and until its termination, in accordance with the notification of the System

Manager, and shall be compared for the purpose of settling to the average consumption

from the network and independent production during the same demand hour clusters in the

5 days preceding the application.

(5) If the System Manager instructs to operate the generator, or to reduce the net consumption

from the network, for a total of less than 100 hours per year, the Essential Service Provider

shall pay the consumer for the remaining hours up to 100 hours per year, as specified in

close (i) below.

(6) The Essential Service Provider shall inform consumers under the arrangement about the

time of operating the generator, 4 hours in advance, by phone, fax or electronic mail, or by

any other means required to ensure the timely delivery of the notification.


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(7) The operation of the generator under the arrangement by instruction from the System

Manager shall not exceed 4 consecutive hours each time. In case of a special requirement of

the system, the System Manager may instruct the consumer to operate the generator for up

to 8 consecutive hours, provided that the consumer has given his consent.

(8) In case of contradiction with any provision of the agreement signed with the Essential

Service Provider for the sale of energy from a generator to the network, the provisions of

this arrangement shall prevail.

(9) If the System Manager finds it necessary to operate consumers’ generator for over 100

hours per year, he shall apply in advance to the Electricity Administration at the Ministry of

National Infrastructures, Energy and Water Resources for authorization to operate the

generators, and to the Electricity Authority for authorization regarding the rate arrangement

for increasing the amount of hours of operation under the arrangement.

(10) If the Authority authorizes an increase to the number of hours specified above, the System

Manager shall instruct consumers under the arrangement to operate the generators for the

additional hours determined by the Authority. To clarify, the instruction of the System

Manager to operate a generator for additional hours shall not alter the undertaking of the

consumer specified in sub-close (5) above.

(11) The Essential Service Provider shall pay consumers under the arrangement for the additional

hours in accordance with the rate specified in close (i) below, as the case may be.


Consumers may submit a request to join the arrangement under the following conditions:

(1) The consumer is connected to the Essential Service Provider’s electricity network.

Consumers with a fuel oil or gas operated generator shall be connected to the extra-high

voltage network;

(2) The consumer has a generator with a power of over 500 MW;

(3) The consumers holds the permits required by law to operate the generator under the

arrangement, including a permit to operate a generator in accordance with the Electricity

Law, 1954, and its regulations;

(4) The consumer and the System Manager have signed an agreement to operated the

generator in accordance with the provisions of this standard;

(5) The entry into the arrangement shall be for a period of not less than one year and shall

remain valid unless cancelled by the System Manager, as specified in close (g) below, or,

alternatively, unless the consumer decided to leave the arrangement, as specified in close (l)

below;


202

(6) The consumer is not under a “Voluntary shedding by operation of independent generators”

arrangement or a “ Voluntary shedding by means of a rolling peak” arrangement;

(7) To dispel any doubt, it is hereby clarified that the entry into the arrangement by the

consumer shall not cast any responsibility on the System Manager regarding the operation

of the generator by the consumer under the arrangement.


Consumers interested in joining the arrangement shall apply to the System Manager in writing,

specifying the following information:

(1) Name, address and contact details of the consumer;



(4) Connection size of the consumer’s facility to the network of the Essential Service Provider

and to the network of the independent producer;

(5) Rated power of the generator;

(6) Copy of the permits for operating the generator;

(7) The fuel type of the generator;

(8) Specification of the protection and control measures for the operation of the generator;

(9) The synchronization method of the generator with the network;

(10) In case of fuel oil or gas operated generators, the consumer shall indicated the maximum

capacity reduction to which he is able to commit with a prior notice of 4 hours by the

System Manager, that will not exceed the maximum consumption capacity of the consumer.

(d) Installation of meters at the consumer’s premises

(1) If the System Manager finds that the consumer meets the conditions specified in close (b)

above, it shall install meters at the consumer’s premises not later than 14 work days from

the date of receiving the consumer request at his offices, as follows:

(a) a continuous production allowing remote reading through a phone line shall be installed

at the terminals of the consumer’s generator or the independent producer’s generator,

as the case may be;

(b) A consumption meter shall be installed at the connection point of consumer’s private

facility to the electricity network, measuring the amount of electricity consumed from

the network and the amount of electricity transferred to the network.


203

(2) If meters are installed at the consumer’s premises, as specified in sub-close (1) above, the

Essential Service Provider may approve their working order and use them for the

arrangement, provided that it does not deviate from the schedules specified in this

standard.

(3) All the required preparations for the installation of the meters shall be made by the

consumer and at his expense.

(4) The consumer shall provide the supplier with a phone line for remote readings.



date of entering into the arrangement.

(e) Installation of protection and communication systems

(1) At the request of the Essential Service Provider, a consumer under the arrangement shall

install at his expense protection systems to protect the network and his private facility,

synchronization systems and communication systems remotely controlled by the Essential

Service Provider. These systems shall be installed in accordance with the law and shall be

compatible with the standards used by the Essential Service Provider.

(2) The Essential Service Provider may use the protection, synchronization and communication

systems specified in sub-close (1) above, in accordance with the needs of the system and at

his sole discretion. The consumer shall not be entitled to receive the rate of this

arrangement prevented by the operation of the aforementioned protection systems.

(f) Informing the Authority

The System Manager shall notify the authority about every consumer who joins the

arrangement and shall specify the name of the consumer, his e-mail address, the date of entry

into the arrangement, the power of the generator under the arrangement and the extent of the

consumer’s consumption reduction commitment.

(g) Rejecting a request and cancelling the arrangement

(1) The System Manager may reject a request to join the arrangement or cancel an existing

arrangement if the consumer does not meet the conditions specified in closes (a) and (b)

above.

(2) Without derogating from the general provisions specified in sub-close (1) above, a deviation

of up to 10% from the number of hours specified in sub-close (a) (2) in case of a consumer

with a diesel operated generator shall not be considered cause for cancellation of the

arrangement by the System Manager. In case of consumers with a fuel oil or gas operated


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generator, more than two deviations per year from the instructions of the System Manager

shall be considered cause to cancel the arrangement.

(3) If the System Manager rejects the request of a consumer to join the arrangement, or

notifies a consumer about the cancellation of his arrangement, it shall specify the reasons


(4) The System manager shall deliver a copy of its notification, in accordance with sub-close (3)

above, to the Authority.






join the arrangement, the System Manager shall inform the consumer in writing about the

decision and act in accordance with the provisions of these standards regarding a consumer

who joins the arrangement.

(h) Submission of estimated production and consumption plans by a consumer under the

arrangement with a fuel oil or natural gas operated generator

(1) A Consumer under the arrangement with a fuel oil or natural gas operated generator shall

submit to the System Manager, by 12:00 every day, a daily plan of estimated production and

consumption in his facilities for the following day starting at 6:00.

(2) The plan shall be submitted for each half hour in the format determined by the System

Manager.

(3) The plan shall be an estimate of the projected independent consumption and production by

the consumer.

(i) Payments

The following payments arrangement shall apply to consumers who join the arrangement:

(1) Payment for each kWh produced for self consumption by a diesel operated generator – for

energy produced by a generator for self consumption in accordance with the requirements

of the System Manager, as specified in standard 46 (a) above, the consumer shall be entitled

to the rate specified in Table of Rates 5.2-2 (load and time rate for consumers in a rolling

peak arrangement by voltage levels) minus the basic production component specified in

Table of Rates 6.3-1;

(2) Payment for each kWh transferred to the network by a diesel operated generator – for

energy produced by a generator and transferred to the network in accordance with the


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requirements of the System Manager, as specified in standard 46 (a) above, the consumer

shall be entitled to the rate specified in Table of Rates 5.2-2 (load and time rate for

consumers in a rolling peak arrangement by voltage levels);

(3) Payment for each kWh produced for self consumption by a fuel oil or gas operated

generator – for net reduction of consumption from the network by self consumption from a

generator, as specified in standard 46 (a) above, the consumer shall be entitled to the rate

specified in Table of Rates 5.2-2 (load and time rate for consumers in a rolling peak

arrangement by voltage levels) minus the basic production component specified in Table of

Rates 6.3-1;

(4) Payment for each kWh transferred to the network by a fuel oil or gas operated generator

– for net reduction of consumption from the network by transferring energy to the network

from a generator, as specified in standard 46 (a) above, the consumer shall be entitled to

the rate specified in Table of Rates 5.2-2 (load and time rate for consumers in a rolling peak

arrangement by voltage levels) minus 6.0 NIS per kWh in case of an oil fuel operated

generator and 8.0 NIS in case of a gas operated generator;

(5) Payment for not receiving instructions to operate a generator or for not receiving

instructions to reduced the difference between consumption and production – for the

hours supplementing the number of annual hours to 100 in which the System Manager did

not instruct the consumer to operate the generator or to reduce the net consumption form

the network, the consumer shall be entitled to payment in the sum of the number of hours

supplementing the number of annual hours to 100 multiplied by the average payment per

hour paid to the consumer in the previous calendar year under the arrangement;

(6) The aforementioned payments shall be made in accordance with the provisions the law,

including the applicable tax laws of the State of Israel.

(j) Indication of the reduction in the consumption bill

The System Manager shall indicate in the consumption bill delivered to consumers under the

arrangement, in addition to the provisions of close 22 (a), the following details:

(1) Total energy consumed from the network in kWh;

(2) Total energy produced by the generator in kWh;

(3) The difference between consumption and production in kWh at the time of the notification

by the System Manager to a consumer with a fuel oil or gas operated generator (a 4 hours

advance notification);

(4) The reduction in the difference between consumption and production during the

arrangement hours;


206

(5) The average reduction in the difference between consumption and production during the 5

work days preceding the notification of the System Manager;

(6) The reduced amount as a result of implementing the incentive rate for each hour in which

the generator produced alternative energy to consumption from the network or a reduction

was made in the difference between the consumption and production of the consumer;

(7) Final amount due;

(8) Settlement for the arrangement specified in sub-close 46 (i) above shall be indicated

separately and emphasized.

(k) Consumer objections regarding a consumption bill



issue.

(l) Leaving the arrangement

(1) Consumers may leave the arrangement only after one year from the date of joining the

arrangement by delivering a written notification to the System Manager.


arrangement, the Essential Service Provider shall remove the meters installed at the

consumer’s premises not later than 7 days from the date of receiving the notification at the

offices of the supplier.


Provider, the day of receiving the notification at the offices of the supplier, shall be

considered as the day of leaving the arrangement.

(4) Consumers who leave the arrangement and later wish to re-join it shall bear the cost of

meters removal and installation, as specified in line 9 of Table of Rates 5.4-2.

(m) Reporting to the authority

Once per year, on 28 February, the System Manager shall submit copies of the consumption bills

of consumers under the arrangement to the Authority.


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47. Smart consumption arrangement

Definitions:

“Shortage event” – in this standard: a case in which the System Manager instructs the consumer

under the arrangement to reduce consumption in order to prevent an interruption of the electricity

supply.

“Shedding” – in this standard: a partial reduction in the electricity consumption of the consumer

under the arrangement.

“The arrangement” – a consumer shedding arrangement during a shortage event inside the private

facility of the consumer, up to a nominal value of than 700 MW, as specified in this standard.

“Incorporating consumer” – a registered corporation representing a cluster of registered

consumers, including consumers of independent producers, for the purpose of participating in a

shedding arrangement. An incorporating consumer may represent TRL consumers, Centralized Sale

Rate consumers, or Unified Rates consumers. Essential Service Providers, including “historical”

distributers, shall not be considered incorporated consumers.

“Base hourly capacity” – average hourly capacity of the three highest days of consumption out of

the 10 work days preceding the notification by the Essential Service Provider regarding a shortage

event, calculated separately for each parallel hour of the event. The capacity measurement shall be

made at least every quarter of an hour. Days in which a shortage event occurs during these hours

shall not be counted.

“Consumption reduction installation” – a means for continuous reading and consumption reduction

connected to a consumer’s consumption device, that is registered with an incorporated consumer

for the purpose of participation in the arrangement, and that meets the level of accuracy and proper

working order specified in standard 15 (d) (testing methods for different meter types).


(1) Subject to the conditions specified in this arrangement, consumers, as defined in this

standard, may join the arrangement.

(2) Consumers joining the arrangement shall be eligible for a rate for every kWh shed from the

base hourly capacity during a shedding event.

(3) For the purpose of settling, the base hourly capacity shall be measured by a continuous

meter installed at the entrance to the facility. If a continuous meter is not available at the

entrance to the consumer’s premises, the base hourly capacity shall be measured using the

consumption reduction installation.


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(4) To be eligible for the rate for shedding, the consumer’s actual hourly capacity during a

shedding event shall not exceed the base hourly capacity for each hour of the shedding

event.

(5) The total shedding and the total payment to the consumer shall be calculated separately for

each hour of the shedding event in accordance with the base hourly capacity for parallel

hours, provided that consumption is reduced in accordance with the terms of the

arrangement in each hour of the shedding event separately and in total.

(6) In the first year of the arrangement, the System Manager shall be required to pay

consumers under the arrangement for 100 hours of operation; In the second year of the

arrangement, the System Manager shall be required to only pay incorporated consumers for

100 hours of operation; and on the third the System Manager shall be required to only pay

incorporated consumers for 60 hours of operation.

(7) Consumers shall be required to shed capacity in their facilities in a total of at least 90% of

the annual operation hours, as required and in accordance with the instructions of the

System Manager.

(8) 24 hours before a shedding event, the Essential Service Provider shall publish on its internet

site the expected staring time and duration of the event.

(9) The Essential Service Provider shall inform consumers under the arrangement about a

shedding event and its expected duration, at least 4 hours prior to the starting time of the

event.

(10) In any case, the actual duration of a shedding event shall not exceed 4 consecutive hours

each time.

(11) If the System Manager finds it necessary to implement the arrangement for over 100 hours

per year, he shall apply in advance to the Authority for authorization to increase the amount

of hours of operation under the arrangement.

(12) If the Authority authorizes an increase to the number of hours specified above, the System

Manager may instruct consumers under the arrangement to implement the arrangement

for the additional hours determined by the Authority.

(13) The Essential Service Provider shall pay consumers under the arrangement for the additional

hours in accordance with the rate specified in close (h) (3) below.


(1) the Essential Service Provider shall register interested consumers to the arrangement

provided that they meet all of the following conditions:


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(a) the TLR consumer or the consumers of an incorporated consumer are connected to the

electricity network of the Essential Service Provider;

(b) The consumer undertakes in writing to shed at least 20% off his base hourly capacity

under the arrangement;

(c) the TLR consumer or the consumers of an incorporated consumer are not registered

with the Essential Service Provider to any other shedding arrangement, except a

frequency shedding arrangement;

(d) The consumer is a TLR consumer with a continuous meter or an incorporated consumer.

Nevertheless, a TLR consumer with a continuous meter may join the arrangement

through an incorporated consumer;

(e) The consumer has signed the arrangement’s entry form, as specified in supplement 1 of

this standard, for a period of one year. The arrangement shall be renewed automatically

for additional one year periods, unless the conditions for terminating the arrangement

exist, as specified in this standard;

(f) The total nominal capacity under the arrangement does not exceed 700 MW.

(2) In addition to the conditions specified in sub-close (1) above, the Essential Service Provider

shall also require incorporated consumers to meet the following conditions:

(a) The incorporated consumer holds signed documents from the consumers of the

Essential Service Provider or from private consumers authorizing him to represent them

to the Essential Service Provider for the purpose of the arrangement (hereinafter:

“entry documents”);

(b) the sum of the capacities of consumers of an incorporated consumer shall not be less

than 20 MVA at any stage;

(c) The total minimum shedding capability of consumers of an incorporated consumer shall

be 3 MW;

(d) A signed statement denying the existence of any criminal conviction / indictment, in

accordance with supplement 2 of this standard.

(3) In addition to the conditions specified in sub-close (1) above, the Essential Service Provider

shall also require TLR consumers to meet the following conditions:

(a) The consumption of a TLR consumer during peak hours in the 12 months preceding the

request shall not be lower than 4% of his total annual consumption;


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(b) A TLR consumer with a continuous meter under an arrangement with the Essential

Service Provider shall not be registered with an incorporated consumer under this

shedding arrangement.

(c) Submitting a request by an incorporated consumer

(1) Incorporated consumers interested in joining the arrangement shall apply to the System

Manager in writing, specifying the following information:

(a) Name and address of the incorporated consumer;

(b) Permanent electronic mail address;

(c) Available phone number of the incorporated consumer;

(d) The number of consumers represented by the incorporated consumer and their

connection sizes;

(e) The total consumption of the consumers represented by the incorporated consumer in

the 12 months preceding the request to join the arrangement.

(2) Incorporated consumers shall submit to the Essential Service Provider a document

specifying the following details regarding each of the consumers represented by him:

(a) Name and address of the consumer;

(b) Permanent electronic mail address;

(c) Available phone number of the consumer;

(d) Voltage of the network to which the consumer is connected;

(e) Size of the connection of the consumer’s facility to the network;

(f) Total consumption by the consumer in the 12 months preceding the entry into the

arrangement;

(g) Other arrangements in which the consumer participates.

(3) Incorporated consumers shall inform the Essential Service Provider in writing about each

additional consumer who joins along with all the information specified in sub-close (2)

above.

(d) Submitting a request by an TLR consumer with a continuous meter

TLR consumers with a continuous meter interested in joining the arrangement directly with the

Essential Service Provider shall apply to the System Manager in writing, specifying the following

information:


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(3) Available phone number of the consumer;


(5) Size of the connection of the consumer’s facility to the network.

(e) Installing installations for consumption reduction by the incorporated consumer

(1) Installations for consumption reduction installed by an incorporated consumer at the

facilities of his consumers shall be remotely controlled by the incorporated consumer, and

all the relevant information concerning consumption reduction shall be also delivered in real

time to the Essential Service Provider.

(2) The Essential Service Provider shall deliver the consumption information of the consumers

to their incorporated consumer, provided that the incorporated consumer presents a

written authorization from his consumers to transfer consumption information to him.

(f) Opening a continuous meter with the TLR consumer joining the arrangement through an

Essential Service Provider

If the Essential Service Provider finds that the TLR consumer interested in joining the

arrangement through an Essential Service Provider meets the conditions specified in close (b)

above, and a meter exists that can be opened to continuous remote reading, it shall inform the

consumer about his eligibility to join the arrangement, and open the continuous meter allowing

remote reading (hereinafter: “the continuous meter”) at the point of the consumer’s

connection to the network, as follows:

(1) The Essential Service Provider shall instruct the TLR consumer to perform all the necessary

preparations, including the allocation of a phone line, for the purpose of opening the

continuous meter by the Essential Service Provider and at the expense of the consumer;

(2) The Essential Service Provider shall open the aforementioned continuous meter not later

than 14 work days from the date of receiving the consumer’s notification that the

preparations are complete;

(3) If the Essential Service Provider does not open the continuous meter, as specified in close 2

above, the TLR consumer or a representative thereof may install a continuous meter for the

implementation of the arrangement, provided that the installation meets the prescriptions

of the law;

(4) If a continuous meter belonging to the Essential Service Provider or the TLR consumer is

installed at the TLR consumer’s connection point, the Essential Service Provider may


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approve its working order and use it for the arrangement, provided that it does not deviate

from the schedules specified in this standard.

(g) Leaving the arrangement

(1) The Essential Service Provider shall remove from the arrangement any consumer who at the

end of one year from the date of joining the arrangement has shed less that 20% of the base

hourly capacity during 90% of the hours required by him.

(2) Incorporated consumers shall update the Essential Service Provider, on the first of each

calendar month, about any of their consumers who leave the arrangement.

(3) Consumers who leave the arrangement or are removed from the arrangement shall not be

allowed to re-join the arrangement for 24 months after leaving it.

(h) Settlement with the Essential Service Provider

(1) Settlement for the arrangement for a consumer with a continuous meter registered with the

Essential Service Provider shall be made in accordance with the readings of the continuous

meter.

(2) Settlement for the arrangement for an incorporated consumer shall be made by the total

energy measurement in the continuous meters of his consumers, in addition to the total

energy registered in the consumption reduction installations among his consumers without

a continuous meter.

(3) The System Manager shall pay consumers for each shed kWh under the arrangement,

subject to the terms of the rate specified in Table of Rates 5.6-2 (smart consumption

arrangement shedding rate).

(4) The rate shall be calculated separately for every hour of a shedding event in accordance

with the shed capacity compared to the base hourly capacity, provided that the consumer

sheds capacity in each of hours of the shedding event separately and in total, and that the

total shed is at least 20% of the base hourly capacity.

(5) The shedding rate shall be for a shedding of up to 40% of the base hourly capacity for an

incorporated consumer and up to 30% for a TLR consumer with a continuous meter joining

the arrangement directly with the Essential Service Provider.

(6) In the first year of the arrangement, if the System Manager informs a consumer and an

incorporated consumer about shedding events in a total of less than 100 hours per year, the

Essential Service Provider shall pay to these consumers for the remaining hours up to 100

hours per year. Payment in this case shall be calculated by the rate multiplied by the

average kWh shed by the consumer under the arrangement during the year.


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(7) In the second year of the arrangement, if the System Manager informs an incorporated

consumer about shedding events in a total of less than 100 hours per year, the Essential

Service Provider shall pay the incorporated consumer under the arrangement for the

remaining hours up to 100 hours per year. Payment in this case shall be calculated by the

rate multiplied by the average kWh shed by the consumer under the arrangement during

the year.

(8) In the third year of the arrangement, if the System Manager informs an incorporated

consumer about shedding events in a total of less than 60 hours per year, the Essential

Service Provider shall pay the incorporated consumer under the arrangement for the

remaining hours up to 60 hours per year. Payment in this case shall be calculated by the rate

multiplied by the average kWh shed by the consumer under the arrangement during the

year.

(9) From the fourth year and onwards, the Essential Service Provider shall only pay consumers

or incorporated consumers under the arrangement for actual shedding.

The Essential Service Provider shall indicate in the consumption bill delivered to consumers and

the consumption bill delivered to incorporated consumers under the arrangement the following

details:

(a) Total energy consumed from the network in each hour of the event;

(b) Total kWh reduced;

(c) Reduced kWh rate and total payment for the reduction;

(d) The date in which the consumer has entered into the arrangement;

(e) Settlement for the arrangement for a TLR consumer with a continuous meter shall be

indicated separately and emphasized in the consumption bill;

(f) If more than one meter is registered to a single TLR consumer, settlement for the

purpose of the arrangement shall be made separately for each meter.

(i) Reporting to the authority

(1) The Essential Service Provider shall inform the authority about each consumer or

incorporated consumer who joins the arrangement, specifying the name of the consumer,

his electronic mail address, the date of joining the arrangement and the reduced capacity

undertaken by the consumer.

(2) In February of each year, the Essential Service Provider shall submit the following

information to the Authority, separately for TLR consumers and incorporated consumers:

(a) The number of consumers under the arrangement;


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(b) The aggregated connection sizes in MW of all the consumers under the arrangement;

(c) the total reduced capacity undertaken by consumers under the arrangement;

(d) A specification of shedding events, the number hours of each event, and the average

actual reduced capacity in each event;

(e) The sum paid to consumers and the cost of the arrangement.

(j) Consumer objections regarding a consumption bill



issue. To clarify, the ombudsman shall not handle conflicts related to the contractual relations

between an incorporated consumer and the consumers represented by it.


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The form of entry into a smart consumption arrangement shall be as follows:

To: the Israel Electric Corporation Request to join an arrangement and an agreement to the terms of the arrangement (in accordance with standard 47 (smart consumption arrangement)) Name and address of the consumer ……………………………………………….. Permanent electronic mail address ……………………………………………….. Available phone number of the consumer …………………………………………… TLR consumers only: Voltage of the network to which the consumer is connected ………………………………………….. Size of the connection of the consumer’s facility to the network ……………………………………………….. Incorporated consumer only: Number consumers represented by it and their total connection size ……………………………………………….. Total consumption of consumers represented by it in the 12 month preceding the request to join the arrangement ………………………………… Total effective shedding capacity of consumers represented by it ……………………………………………….. MW Number of shedding points …………………………………………

1. The consumer herby submits a request to join a smart consumption arrangement (hereinafter: “the Arrangement”).

2. The consumer’s entry into the arrangement shall be as follows: a. The consumer shall reduce his capacity during a shedding event by instruction from the Essential

Service Provider, given at least 4 hours before the event. b. The duration of a shedding event announced by the Essential Service Provider shall not exceed 4

hours, and the total duration of annual events shall not exceed 100 hours. 3. The consumer herby declares that he is aware that the details of the arrangement are determined by the

Public Utilities Authority – Electricity in standard 47 (publish in ………………………………………………..) or in any other standard that will replace it.


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Supplement 5

Statement regarding criminal convictions / indictments

I, the undersigned, __________ I.D. number __________, after being cautioned that I must state the

truth or otherwise be liable to the penalties prescribed by law, hereby declare:

I submit this statement on behalf of __________, who wishes to be registered with the Essential Service

Provider as an incorporated consumer (hereinafter: “the applicant”). I herby confirm that I am

authorized to give this statement on behalf of the applicant.

1. In this statement, the meaning of “interest holder” shall be as defined in the Public Bodies

Transactions Law, 1976 (hereinafter: “Public Bodies Transactions Law”). I hereby confirm that

the meaning of this term has been explained to me and that I understand its content.

2. The applicant is a corporation registered in Israel.

3. The applicant and its interest holder have not been convicted by a peremptory rule in the last

seven years and are not under any indictment for criminal offenses.

Here is my name, below is my signature and my statement is true.

__________ __________ __________

Date Name Signature and stamp

Confirmation

I, the undersigned, __________ advocate (L.N. __________) of __________ Street, confirm that on

__________ Mr. / Mrs. / Miss __________ indentified by I.D. no. __________ / who is personally known

by me, appeared in my presence and after being cautioned by me that he must state the truth or

otherwise be liable to the penalties prescribed by law, has confirmed the truthfulness of his statement

and signed it in my presence.

__________

Advocate


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47a. Voluntary shedding arrangement for large electricity consumer

In this standard:

“Shortage Event” – a shortage of electricity that requires load shedding, following the utilization of

all production units, including independent producers, and the use of backup fuel in units with

backup fuel operation capability;

“The arrangement” – a load shedding arrangement in accordance with this standard;

“Actual shed hourly capacity” – the base hourly capacity minus the actual capacity during a

shedding event (in MW);

“Base hourly capacity” – average hourly capacity in the three the 10 work days preceding the

notification by the Essential Service Provider regarding a shortage event, calculated separately for

each parallel hour of the event. The capacity measurement shall be made at least every quarter of

an hour. Days in which a shortage event occurs during these hours shall not be counted;

“Consumer under the arrangement” – a consumer, including a private consumer, with a reduction

capability of at least 1 MW, who informs the System Manager about his wish to join the

arrangement, and whose participation in the arrangement is approved by the System Manager after

specifying the capacity he is able to shed from his private facility and the notification time he

requires to prepare for the shedding;

“Notification time” – the period of time between the issuing of the load shedding request to the

consumer by the System Manager , or the date agreed upon in advance by the System Manager and

the consumer at the time of entering into the arrangement, and the time of the actual shedding

according to the arrangement.


(1) Consumers registered to the arrangement shall inform the System Manager about their

reduction capability in their private facility during a shortage event, the notification time

they require to prepare and the maximum shedding duration they can afford, as specified in

this standard.

(2) The System Manager may request all or some of the consumers under the arrangement to

shed all or part of the load in their private facility during a shortage event, as specified in

sub-close (1) above.

(3) Consumers under the arrangement may accept or reject the request of the System

Manager. If a consumers accepts the request, the starting time of the shedding, its duration

and size, shall be determined in accordance with the agreement between the System

Manager and the consumer made at the time of entering into the arrangement, or by


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agreement between the System Manager and the consumer at the time of issuing the

notification.

(4) If the actual consumption capacity of the consumer during a shedding event exceeds the

case hourly capacity after the consumer has given his consent to the shedding, as specified

in sub-close (3) above, the consumer shall pay the System Manager in accordance with close

(f) below.

(5) The System Manager shall not register to the arrangement a consumer registered to a

different shortage management arrangement who has not yet completed the number of

hours specified in it, unless the consumer undertakes to shed consumption under the

arrangement specified in this standard at a notification of less than 4 hours. If the consumer

agrees to a notification of less than 4 hours, the System Manager shall use the consumer

under this arrangement during different operating hours than in the other shortage

management arrangement in which the consumer participates, as the case may be.

(6) For the purpose of settling in accordance with this standard, the notification time shall be

determined in accordance with the table in close (f) below.

(7) The rate for capacity shed by the consumer shall be calculated by the formula specified in

close (f) (rates for a voluntary shedding arrangement for large consumers).


(1) A consumer connected to the high voltage or extra-high voltage network of the Essential

Service Provider may register to the arrangement, provided that he meets one of the

following conditions:

(a) The consumer does not participate in any different shortage management

arrangements, except for a frequency shedding arrangement;

(b) The consumer participates in a rolling peak or generator arrangement, and the System

Manager has used him for the full number of hours specified in it before the end of the

calendar year;

(c) The consumer participates in a rolling peak or generator arrangement but undertakes to

shed consumption under the arrangement specified in this standard at a notification of

less than 4 hours.

(2) The consumer is capable of shedding load, in accordance with this standard, in a capacity of

not less than 1 MW. For this purpose, the consumer may include several consumption

locations.

(3) The consumer has a continuous meter installed.


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(4) The consumer is capable to shed load in his private facility according to the schedules

specified in this standards.


Consumers interested in joining the arrangement shall apply to the System Manager in writing,

specifying the following information:

(1) Name, address and contact information of the consumer;


(3) Size of the connection of the consumption location to the network of the Essential Service

Provider;

(4) The capacity the consumer is able to shed under the arrangement;

(5) The minimum notification time required by the consumer in order to prepare for a

shedding, in accordance with the schedule specified in close (f) below, and shedding

duration;

(6) The supplier in contract with the consumer in a private transaction.

Consumer may specify in their application several alternatives to the notification time, shed

capacity and shedding duration.

(d) Notifying the consumer about the base hourly rate

When the System Manager requests a shedding from a consumer under the arrangement, he

shall deliver to the consumer the information necessary to calculate his base hourly capacity.

(e) Entry into the arrangement by a consumer who purchases energy from an independent

producer

(1) Notifications and instructions regarding the implementation of the arrangement shall be

delivered by the System Manager directly to the consumer under the arrangement.

(2) The System Manager shall pay the supplier or the consumer under the arrangement the rate

for his participation in the arrangement.

(3) To dispel any doubt, the instructions of the System Manager under this arrangement shall

not allow the independent producer in contract with the consumer under the arrangement

to deviate from the production plan.

(4) The System Manager shall not provide the independent producer with any additional

payment for energy transferred to the network by the producer during a shortage event.


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(5) The System Manager shall engage private consumers under the arrangement for a minimum

number of hours per year, as specified in column β of table 9.2-2.

(6) If the System Manager engages a private consumer under the arrangement for less the

number of hours specified in column β of table 9.2-2, he shall pay the consumer the

supplement payment for operating hours in accordance with the capacity and notification

time undertaken by the consumer.

(f) Rates and payment under the arrangement

(1) the rate for shed kWh shall be calculated under the arrangement by the following formula:

Where:

PC – rate for shed kWh;

P0 – “rate production component” specified in Table of Rates 6.3-2 for the relevant demand

hour cluster;

P1 – rate in Agorot for each reduced kWh for consumers under a voluntary shedding

arrangement, in accordance with table 2 of voluntary shedding arrangement rates – Agorot

per kWh;

β – minimum number of engagement hours for a private consumer in 2013; from 1/1/2014

the value of β shall be updated every year according to economic needs;

α – the weight given to price P1 in accordance with the notification time in table 9.2-2

below:

Table 9.2-2: Variables for calculating the rate for a voluntary shedding arrangement for large

consumers

Notification time α β

Over 24 hours 0% 0

Under 24 hours and up to 8 hours 5% 0






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Under 1 hours and up to ½ hours 70% 30

Under ½ hour 80% 25

(2) payment for each hour of a shedding event:

(a) If q ≤ QB*0.8 payment shall be q*PC

(b) If QB*0.8 > q ≥ QB*0.3 payment shall be q*PC*0.8

(c) If QB*0.3 > q ≥ QB*0.1 payment shall be q*PC*0.6

(d) If 0 ≥ q payment shall be BO*PC*-0.1

Where:

QB – the shed hourly capacity agreed upon by the System Manager and the consumer at the

time of the request by the System Manager from the consumer (in kWh), in accordance with

close (a) (3);

q – actual shed hourly capacity (in kWh).

(3) If the System Manager notifies the consumer about a shortage event earlier than at the

notification time undertaken by the consumer, he shall pay the consumer in accordance

with the notification time undertaken by the consumer.

(4) If the System Manager utilizes the β number of hours of the agreement with a consumer in

a specific year, he may engage the consumer, if the consumer is interested and in

accordance with the needs of the system, on the basis of specific sheddings, in accordance

with the provisions of this standard.

(g) Reporting to the Authority

Once per year, the System Manager shall report the following information to Head of the

Engineering Department at the Authority:

(1) A list of consumers under the arrangement, the capacity each is capable of shedding in his

private facility during a shortage event, The minimum notification time required by each in

order to prepare and the maximum shedding duration each can afford;

(2) An event report specifying separately for each consumer under the arrangement the

notification time, the actual shedding start, the shed capacity, the duration of the shedding

and the rate paid for the shedding.


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Section E: Damages to Electrical Appliances

48. Damages to electrical appliance in a steady state

(a) Compensation

Consumers whose electrical appliances incur damages as a result of an electricity supply event,

as specified in close 48(b), shall be compensated by the Essential Service Provider, in accordance

with the provisions of standard 49 (compensation for damages to electrical appliances).

(b) Events warranting compensation

The following electricity supply events shall warrant compensation for damages to electrical

appliances:

(1) Electricity supply with a supply voltage that is lower of higher than the nominal voltage

specified in standard 41 (a) by more than 15%;

(2) Disconnection of the neutral conductor in a low voltage three-phase circuit between the

transformer terminals and the terminals of the private facility connection, if damage is

incurred by the single-phase appliance;

(3) Malfunction, incorrect operation or maintenance not according to the annual maintenance

plan in protection devices for fault currents or short circuit currents, in all voltage levels and

in transformer voltage regulators;

(4) Inversion of neutral and phase and phase and phase as a result of incorrect network wiring;

(5) Loose contact of the neutral or phase in a low voltage network or domestic connection;

(6) Malfunction of one of the terminals of a high voltage isolator switch;

(7) Electricity supply with a supply frequency that is lower of higher than the nominal frequency

specified in standard 41 (c) by more than 5%;

(8) The frequency of temporary interruptions or continuous interruptions in the high voltage

line feeding the consumer is 5.3 or more times the annual national average;

(9) The number of complainers fed by the same high voltage line in the same event is more

than 5, provided that they are not fed by the same feeding cable (domestic connection);

(10)

(a) An event in which two re-connections are automatically made within 90 seconds after a

protective disconnection of the line;


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(b) More than one manual switching action for the entire line within 5 minutes after a relay

action for automatic re-connection;

(c) More than 10 manual switching actions for part of the line for the purpose of

discovering the faulty part. In case of a deviation from the number of switching actions

specified in this standard, the Essential Service Supplier shall pay the consumer the sum

specified in Table of Rates 12.1-1 (payments for violation of standards);

(11) Deviation from the electrical values specified in standard 41 (h).

(c) Events not warranting compensation

The following events shall not warrant compensation to the consumer from the Essential Service

Provider, unless otherwise proven:

(1) Malfunction in the consumer’s private facility;

(2) Power cut and a single electricity connection afterwards;

(3) Disconnection of a phase conductor or a burned fuse in a low voltage supply network, or a

burned fuse in a high voltage supply network;

(4) Damages caused by irregular operating conditions, as specified in close 11 of IS 50160.

(d) Submitting a request for compensation

(1) Consumers demanding compensation for damages to electrical appliances shall submit a

request to the Essential Service Provider, in accordance with standard 49 (compensation for

damages to electrical appliances), and specify the date and hour in which the damages

occurred.

(2) Requests shall be handled in accordance with the provisions of standard 49 (compensation

for damages to electrical appliances).

(e) Malfunctions not specified in this standard

Any damages caused to consumers’ appliances as a result of a malfunction that is not specified

in this standard, shall be handled ad hoc by the Authority’s ombudsman.


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49. Compensation for damages to electrical appliances

(a) Submitting a complaint

Consumer complaints regarding damages to electrical appliances shall be submitted in writing to

the Essential Service Provider.

(b) Investigation of complaints

Complaints shall be investigated in accordance with standard 48 (damages to electrical

appliances in a steady state).

(c) Crediting consumers

The Essential Service Provider shall credit consumers for any direct financial damages to

appliances, if the damages to the aforementioned appliance are caused by a malfunction in the

electricity supply.

(d) Submitting information

In order to establish the sum of the damages, the consumer shall submit to the Essential Service

Provider any relevant document available to him, including, and without derogating from the

generality of the above, a specification of the details of the malfunction, replaced parts and a

detailed quotation or repair or replacement bill.

(e) Submitting information to the consumer

The Essential Service Provider shall submit to the consumer, at his request, the details of

interruptions registered by the measuring instruments installed in its network.

(f) Date of receiving compensation

The sum of the compensation shall be delivered to the consumer as soon as possible and not

later than 45 work days from the date of the final reply to the consumer’s complaint.


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Chapter E: Network Services

Section A: Receiving Network Services

50. Receiving network services

(a) Duty of the Essential Service Supplier

The Essential Service Provider shall receive the electrical energy supplied by a producer for a

private transaction and provide the supplier contracted through a private transaction with

network services.

(b) Requesting network services

In order to receive network services, the supplier shall apply to the System Manger, as specified

in standard 51.

(c) Providing network services

The System Manager and the supplier may sign a contract for the provision of network services

subject to the standards and rate arrangements. Notwithstanding the above, the provisions of

services shall not be delayed or conditioned by the Essential Service Provider by signing a

contract or any other document on his behalf.

(d) Providing a security

As a condition to receiving network services from the Essential Service Provider, the supplier

shall provide a security to the System Manager, to be deposited with the System Manager, in

order to guarantee the payments due to the ESP for network services. The security shall be for

70% of the average monthly TLR payment of the producer’s consumers during the summer

season, in accordance to their consumption on the parallel period in the previous year. This

security shall be updated once per year, by 1 February, in accordance with the average

payments made in the previous year.

The supplier shall be entitled to appeal to the professional team at the Authority regarding the

forfeit of the security.


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51. Requesting network services

(a) Method of request

In order to receive network services or to renew network services, the supplier shall apply to the

System Manager in writing, specifying the following information:

(1) Name and address of the supplier;

(2) Copy of the supply license;

(3) Name and address of the private consumer (for this purpose each metering point shall be

considered as a separate consumer). This close shall not apply to consumers in the premises

of a producer or consumers in the premises of a private consumer, as the case may be,

unless a distribution license is issued under which the consumer receives services from the

holder of the distribution license;

(4) Meter number of the private consumer;

(5) Size of the connection and voltage of the network to which the consumer is connected;

(6) Specification of producers with which the supplier is in contract for the purpose of electricity

acquisition for the private transaction;

(7) If the supplier wishes to classify the sale of electricity as a near transaction, he shall specify

the metering points for which a near transaction classification is requested, together with a

drawing of the shortest electricity network connecting the producer form which electricity is

purchased for the private transaction and the private consumer, and specifying the

transformer stations between the different voltages and the sub-station or switching station

to which the private consumer is connected. The near transaction approval shall be

provided in accordance with the provisions of standard 54 below;

(8) The aggregated connection size of the supplier’s consumers;

(9) The date requested to begin using the infrastructure;

(10) The principles of the agreements signed with the producer and the consumer, excluding the

proceeds component and any other information that the supplier considers a commercial

secret.

(b) Supplier lacking information

(1) A supplier lacking any of the information specified in standard 51 (a) shall apply to the

System Manager in order to receive the information and shall attach a singed authorization

from the consumer or the producer to deliver the requested information.


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(2) The System Manager shall deliver the requested information to the supplier as soon as

possible and not later than 10 work days from the date of receiving the request at his

offices.

(c) Exchanging information

The System Manager and the supplier shall exchange names of contact persons, phone

numbers, fax numbers and electronic mail addresses for delivering notifications.

(d) Starting date of a private transaction

The Essential Service Provider shall allow the private transaction to begin within the period

specified in standard 52 below.


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52. Date of providing network services

(a) Minimum period for a private transaction

The Essential Service Provider shall provide network services for the purpose of a private

transaction valid for a period not shorter than 60 days.

(b) Starting date for the provision of network services

(1) The Essential Service Provider shall allow provision of network services to a private

transaction not later than 45 work days from the date of the request, unless the supplier

requests a later date for the provision of network services.

(2) The Essential Service Provider may apply to the Authority, not later than 7 work days from

the date of the supplier’s request, with a justified request to delay the starting date for the

provision of network services for a specific metering point due to complications in installing

a meter. The professional team of the Authority shall decide in the matter of the request

within 14 work days.

(c) Payment for delay in providing network services to the supplier

(1) if the provision of network services for the supplier’s consumers is delayed because of any

failure of the Essential Service Provider, the Essential Service Provider shall not charge the

supplier for the cost of electricity provided by it for the purpose of a private transaction;

however, any expenses saved for the supplier and any other proceeds received by the

supplier as a result of the failure shall be deducted from this cost.

(2) In any case, the supplier shall be billed for the network services provided to this consumer.


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53. Termination of a private transaction and switching suppliers

(a) Termination of a private transaction

(1) Without derogating from the provisions of close 52 (a), suppliers shall notify the System

Manager in writing about the termination of any private transaction with a consumer.

(2) A notification regarding the termination of a private transaction shall enter into force at the

date of sending the final bill to the supplier issued at the nearest billing date of the supplier,

and in any case, not later than 30 days from the date of the notification, as specified in sub-

close (1) above. Nevertheless, the exact date of issuing the final bill for the private

transaction shall be determined by the System Manager in accordance with dates of

terminating the private transaction, as specified in sub-close (1) above, reading the

consumer’s meter and the issuing and delivery of the bill to the supplier, closest to the date

of delivering the notification regard the termination of the private transaction.

(3) The System Manager shall notify suppliers and suppliers holding an Essential Service

Provider license about the exact date of termination of a private transaction.

(4) Following the date of termination of a private transaction between the supplier and the

consumer, the consumer shall receive electricity supply services by one of the following two

alternatives:

(a) A different supplier chosen by the consumer;

(b) A supplier holding an Essential Service Provider license to provide services in the

distribution zone to which the consumer belongs.

(b) Removing consumers from a supplier for non-payment for infrastructure services

(1) If the supplier fails to pay the bill for the services provided to him by the System Manager or

the Essential Service Provider, as specified in the bill, the System Manager shall act in

accordance with standard 24 (b), but the last due date for the supplier shall be 20 days from

the date of delivery of the bill by the System Manager.

(2) If the supplier does not settle his bill, as specified in sub-close (1) above, the System

Manager shall transfer the supplier’s consumers to receive service from a supplier who is an

Essential Service Provider for the consumers’ distribution zone. The System Manager shall

inform the aforementioned supplier about his duty to provide service to the consumers, and

inform the Authority about the switch.

(c) Notification regarding switching suppliers

(1) In case of a transfer of a consumer between suppliers, the System Manager shall receive a

written notification from the supplier to which the supplier transfers, as specified in this

standard.


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(2) The System Manager shall update his records in accordance with the supplier’s notification,

and update the supplier holding an ESP license for the relevant area accordingly.

(3) If the System Manager receives two or more notifications regarding a transfer between

suppliers of the same consumer, he shall act according to the latest notification and inform

the supplier to which the notifications refer.

(d) Notification regarding termination of activity by a supplier

(1) A supplier who terminates his services to a consumer shall inform the System Manager

immediately, and the System Manager shall inform the supplier who is an Essential Service

Provider in the relevant area about his duty to provide service to the consumer.

(2) The supplier holding an Essential Service Provider license to which the consumer is

transferred shall notify the consumer and the Authority about the transfer.

(e) Report of consumer allocation to suppliers

(1) As a condition to receive services from the System Manager, the supplier shall provide the

System Manager, in case of any changes to the roster and information of his consumers,

with an updated report regarding any changes to the roster of his consumers (hereinafter:

“the changes report”). The changes report shall contain information regarding the

consumers who joined the supplier or were removed from his services that day. The report

shall include at least the following details regarding the consumers: first and last name or

corporation name, I.D. number or corporation number, address, phone number and meter

number, unless otherwise agreed upon between the parties.

(2) The terms relating to the delivery of the changes report, including the time of delivery, shall

be agreed upon between the supplier and the System Manager. If the parties do not reach

an agreement, the professional team at the Authority shall rule on the matter.

(f) Notification regarding termination of private transaction between a producer and a supplier

Notifications regarding the termination of a private transaction between a producer and a

supplier shall be delivered to the System Manager in writing by the producer, immediately and

not later than 7 says from the date of termination.


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54. Classification of transactions

(a) Classification as a near transaction

(1) Upon receiving a request from a supplier to classify an infrastructure transaction as a near

transaction, the Essential Service Provider shall apply to the Head of the Engineering

Department at the Authority, in writing, with a complete copy of the supplier’s request, in

accordance with standard 51, for the purpose of classifying the transaction as a near

transaction regarding the metering points specified by the supplier.

(2) The Essential Service Provider shall add his opinion regarding each metering point for which

a classification of near transaction is requested. The supplier may submit opinions on his

behalf to the Head of the Engineering Department at the Authority.

(3) The classification of the infrastructure rate as a near transaction rate shall be made

separately for each consumer (metering point).

(b) Delay in classification of transactions

If the provision of infrastructure services starts before the infrastructure rate classification is

obtained from the head of the engineering department, the rate shall be considered as a rate

for a private near transaction for the relevant voltage until the rate classification is obtained.

When the rate classification is obtained, the determined rate shall apply retroactively from the

starting date of the provision of infrastructure services, and the Essential Service Provider shall

charge the supplier for the any differences plus Accountant General Interest, if any exist.

(c) Default – far transaction

Unless an explicit request by the supplier is received at the office of Head of the Engineering

Department at the Authority to classify the infrastructure rate as a near transaction regarding

specific connection points, the private transaction shall be considered a far transaction for all

consumer connection points.

(d) Infrastructure transaction classification fee

For the handling of a request to classify an infrastructure transaction as a near transaction by

the Head of the Engineering Department at the Authority, the supplier shall pay a fee

determined in accordance with the law.


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55. Payment to the Essential Service Provider for losses in a private transaction

(a) Non-liability to transmit loses in a private transaction by an independent producer and their

charge under an infrastructure rate for energy losses

The amount of electricity transmitted to the network for the purpose of a private transaction

shall be the same as the amount intended for consumers in the private transaction as measured

by the consumer meters. The supplier shall be charged for any energy losses by his consumers,

calculated in accordance with tables of rates 7 and 6.3 under the rate for energy losses.


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56. Weekly consumption plan

(a) Schedule for submitting a weekly consumption plan

(1) On every Thursday, or, if Thursday is a Holyday, on the last weekday prior to the

aforementioned Thursday, before 10:00, the supplier shall submit to the System Manager a

weekly consumption plan in half-hours, specifying the projected aggregated consumption

for each day of the following week.

(2) The weekly consumption plan shall be submitted on a single form similar to the daily

consumption plan, in accordance with the form presented in this standard. The System

Manager, based on his professional opinion and with the approval of the Authority, may

create a unified report form for obtaining the required information from each supplier for

the purpose of planning station loads.

(3) The weekly consumption plan is intended for purposes of planning only.

(4) Notwithstanding the above, if the supplier does not submit a daily consumption plan, the

plan for each day under the weekly plan shall be considered as the daily plan for the

supplier.


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Weekly consumption plan in half-hours for the week between __ / __ / __ and __ / __ / __

Weekday ………………..………………..

Name of the supply license holder (“the supplier”) ………………..………………..

From hour Producer from which electricity is purchased

Projected energy by measurement of the supplier’s consumer meters

Producer from which electricity is purchased

Purchased amount (MWh)

00:00

00:30

01:00

01:30…

__________ __________

Supplier’s signature Date


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57. Daily consumption plan

(a) Schedule for submitting a daily consumption plan

On every day, before 10:00, the supplier shall submit to the System Manager a daily

consumption plan in half-hours, specifying the projected aggregated consumption for 24 hours,

from 00:00 until 24:00, for the next day in case of a weekday, or for the next weekday in case of

a holyday or on Thursday.

(b) Submitting the daily consumption plan

The daily consumption plan shall be submitted on a single form, in accordance with the form

presented in this standard. The System Manager, based on his professional opinion and with the

approval of the Authority, may create a unified report form for obtaining the required

information from each supplier for the purpose of planning station loads.

(c) Changes to the consumption plan

(1) If necessary, suppliers who submit a consumption plan before 10:00 may submit a request

to the System Manager to make changes to the consumption plan, before 12:00 on the

same day.

(2) Notifications regarding changes to plans shall be delivered to the System Manager in

writing.


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Daily consumption plan in half-hours for __ / __ / __

Date ………………..………………..

Name of the supply license holder (“the supplier”) ………………..………………..

From hour Producer from which electricity is purchased

Projected energy by measurement of the supplier’s consumer meters

Producer from which electricity is purchased

Purchased amount (MWh)

00:00

00:30

01:00

01:30…

__________ __________

Supplier’s signature Date


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58. Electricity supply during a private transaction period

(a) Electricity acquisition for private consumers

(1) As part of private transactions between the supplier and consumers and independent

producers, the supplier shall purchase all planned consumer consumption, in accordance

with a daily consumption plan submitted by the supplier.

(2) If the supplier decides not to purchase the full electricity consumption of his suppliers under

private transactions with independent producers, he shall be entitled to purchase the

remaining electricity from the System Manager for the purpose of sale to his consumers in

TLR rates, subject to meeting one of the following conditions:

(a) In case of maintenance under the equivalent availability of an independent producer

with whom the supplier conducted a private transaction;

(b) in case of a force majeure event in the producer’s facility from which the supplier

purchases electricity, as specified in standards 130 – 134;

(c) During low demand hour cluster in which the producer’s facility from which the supplier

purchases electricity does is not producing any electricity;

(d) In case the producer from which the suppler purchases electricity switches to the use of

alternative fuel following an instruction from the System Manager;

(e) In case of instructions from the System Manager to a producers in an irregular state;

(f) In accordance to the provisions of standard 141 (liability).

(3) In the cases specified in sub-close (2) above, the acquisition form the System Manager shall

be indicated in the third column of the consumption plan, “producer from which electricity

is purchased”.

(4) In cases not specified in sub-close (2) above or in sub-close (1) above, the supplier shall

purchase electricity for his consumers in accordance with real time price, Ex Post.

(5) All the provisions specified in these standards regarding private transactions with

consumers shall apply to supplier purchasing electricity for some of the aforementioned

consumers from an independent producer during low hours.

(6) The aforementioned in sub-closes (1) – (4) shall not relieve the supplier from his duty to

issue a bill to his consumers for acquisition of electricity from the System Manager, collect

payments and transfer them to the System Manager for the aforementioned electricity.

(b) Balancing the aggregated private consumption for production


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(1) The total planed aggregated consumption in a private transaction, as specified in the

consumption plan, shall be identical to the total production purchased by the supplier for

his consumers, as specified in the consumption plan and in the production plans of the

suppliers and producers accordingly.

(2) If the System Manager finds any discrepancy between the total production and the total

consumption, in accordance with the provisions of sub-close (1) above, he shall request

from the supplier to amend his submitted plans within two hours from the time of receiving

the request.

(3) If an amended plan is not received within the time frame specified in sub-close (2) above,

the System Manager shall amend the consumption plan by comparing it to the production

amount for the private transaction. For deviation from the consumption plan, the System

Manager shall charge the supplier in accordance with the payment specified in standard 59.

(c) Rejecting unreasonable plans

(1) The System Manager may reject a consumption plan if the consumption data in it is

unreasonable in accordance with load forecasts, the history of consumer consumptions (by

type of consumer at least) or any other data that is received regarding consumer

consumption.

(2) Prior to rejecting the plan, the System Manager shall apply to the supplier for clarification

and information regarding the forecast used by the supplier in creating the consumption

plan, and shall allow the supplier to amend the plan.

(3) If a supplier’s plan is rejected by the System Manager, the plan shall be updated in

accordance with the specification of the weekly consumption plan regarding the daily

consumption plan.

(4) If the aforementioned in sub-close (1) applies to the weekly plan and the plan is not

amended, as well as to the daily plan, the supplier shall purchase electricity from the

network in accordance with real time cost, Ex Post.


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59. Deviation from the daily consumption plan (accounting for surplus and deficiency)

(a) Deviation from the consumption plan – excess consumption

(1) If the actual consumption exceeds the planned consumption, as specified in the

consumption plan, the System Manager shall provide for the consumption demands of the

supplier’s consumers.

(2) For an excess consumption by the supplier’s consumers of up to 10% of the consumption

specified in the daily plan, the supplier shall purchase excess electricity in accordance with

TLR rates; for excess consumption of more than 10% the supplier shall pay the System

Manager in accordance with real time production market price, as measured in real time (Ex

Post).

(b) Deviation from the consumption rate – insufficient consumption

(1) If actual consumption is lower than the planned consumption specified in the consumption

plan, the System Manager shall purchase the excess electricity intended for the

consumption demands of the supplier’s consumer.

(2) For purchase of excess electricity of up to 10% of the amount specified in the daily plan, the

System Manager shall pay the supplier in accordance with the production component rate,

as specified in Table of Rates 6.3-1; for purchase of excess electricity of over 10% of the

amount specified in the daily plan, the System Manager shall pay the supplier in accordance

with the market price for real time production (Ex Post) or the maximum price in the Rate

Authorization for producers in a private transaction with the supplier, whichever is lower.


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60. Payment for infrastructure services

(a) Rate for infrastructure services

(1) for the provision of infrastructure services, the System Manager shall charge the supplier

according to the rate specified in the infrastructure rate tables (Table of Rates 7), in

accordance with classification of the infrastructure rate as a private near or far transaction

rate by the decisions of the Head of the Engineering Department at the Authority regarding

the transaction classification, as specified in standard 54.

(2) The System Manager shall transfer to the distribution or transmission ESP, as the case may

be, the payments due to it in accordance with sub-close (1) above.

(b) The obligating measurement

The amount of electricity used for the purpose of calculating payment for infrastructure services

shall be determined in accordance with the measuring taken by the meter installed at the

consumer’s premises.


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61. Fixed payment

(a) Supplier’s fix payment

The supplier shall be charged by the System Manager with a “fixed payment” in accordance with

the number of his consumers and the connection voltage, as specified in Table of Rates (to be

determined).


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62. Issuing bills to suppliers

(a) Supplier bill

Once per month, the System Manager shall issue and deliver a bill to the supplier.

(b) Content of the bill

The System Manager shall specify, among others, the following information in the supplier bill,

so as to allow separate payment to the different service providers:

(1) Calculation of payment for infrastructure services provided for each of the supplier’s

consumers, in each demand hour cluster, in accordance with the relevant infrastructure

rate, for the use of the Essential Service Provider’s infrastructure for the purpose of

transferring energy;

(2) Calculation of payment for deviations from the consumption plan, as specified in standard

59, including details of the deviations and the production rate according to which the

payment is calculated;

(3) Calculation of the payment specified in standard 61 (a);

(4) The amount of energy consumed by the supplier’s private consumers, in accordance with

the consumer’s meter reading in each connection point;

(5) Payment for energy consumption from the System Manager, as specified in standard 58 (a);

(6) Payment for backup services (rate to be determined).

(c) Paying the bill

(1) Payments for receiving infrastructure services shall be collected from the supplier by the

System Manager and transferred by him to the holder of the distribution license and the

holder of the transmission license, as the case may be, in accordance with the consumer’s

connection voltage and based on the bill delivered by the System Manager.

(2) Payment for energy acquisition and for deviations from the consumption plan shall be made

by the supplier to the System Manager.

(d) Application of standards

Regarding the application of the standards in chapter B of the Book of Standards, the supplier

bill shall be considered as a consumption bill, except that the due date specified in standard 24

(b) shall be within 20 days from the date of issuing the bill and not within 11 or 14 days, as

specified in the aforementioned standard.


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63. Consumer meter Installation and reading

(a) Consumer meter installation

(1) A holder of a transmission or distribution license, as the case may be, is required to install a

continuous meter capable of recording data in half-hour intervals for each consumer of

representative thereof, within 30 work days from the date of submitting a request by the

consumer or a supplier on behalf of a consumer.

(2) If the Essential Service Provider requires an extension of the aforementioned period for the

installation of a meter, it shall apply to the Head of the Engineering Department at the

Authority not later than 7 work days from the date of receiving the meter installation

request, with a justified request for an extension, specifying the additional time it requires.

The head of the engineering department shall rule in the matter no later than 30 days from

the date of receiving the application. The Head of the Engineering Department at the

Authority shall not approve extensions beyond 60 days, except in special cases that will be

recorded.

(3) For the installation of a meter, the supplier shall pay the holder of transmission or

distribution license, as the case may be, the amount specified in Table of Rates (to be

determined).

(b) Reading consumer meters

(1) The holder of a transmission or distribution license, as the case may be, shall read the meter

installed at the consumer’s premises, in accordance with the provisions of standard 13,

except the provisions of close 13 (d).

(2) The reading data shall be transferred to the System Manager, including for the purpose of

issuing a bill to the supplier, as specified in standard 62, and calculating payments involved

in a private transaction, including payments for infrastructure services and payments for

deviations from the consumption plan. The reading data shall be also transferred to the

supplier.

(c) Installing instruments for remote reading at the consumer’s premises

(1) At the request of the supplier and with the consent of the consumer under a private

transaction with the supplier, the holder of a transmission or distribution license, as the case

may be, shall install instruments for remote meter reading at the premises of consumers

with suitable meters, to be used by the provider, the supplier, the System Manager and the

consumer or his representatives.

(2) The instruments for remote reading shall be installed not later than 30 work days from the

date of receiving the supplier’s request at the offices of the ESP, unless the Authority


244

approves a delay of the installation at the request of the ESP, in accordance with the

provisions of close (a) above.

(3) For the installation of instruments for remote reading and for conducting the readings, the

supplier shall pay the holder of a transmission or distribution license, as the case may be, in

accordance with Table of Rates (to be determined).

(4) If instruments form remote reading are installed at the consumer’s premises, the reading

data shall be transmitted once per day, in accordance with the agreement between the

System Manager and the supplier, to the supplier, the System Manager and the Essential

Service Provider (holder of a transmission or distribution license, as the case may be) for

their use.

(5) For an unauthorized delay in installing instruments for remote reading, the holder of a

transmission or distribution license, as the case may be, shall pay the supplier the sum of (to

be determined) for each day of delay.

(d) Installation of meters for consumption forecasts

A supplier or a future supplier, who enters into a private transaction with consumers, may

request, with the consent of the consumer, the installation of a meter and the installation of

instruments for remote reading at the consumer’s premises by the holder of a transmission or

distribution license, as the case may be, as specified in closes (a) and (c) above.


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64. Obligation of the Essential Service Provider

(a) Obligation of the Essential Service Provider towards private consumers

The existence of a private transaction shall not derogate, in whole or in part, from the

obligations of the Essential Service Provider towards electricity consumers, including his

obligations by law and by the standards, and including his obligations regarding disconnection of

consumers and any other matter.

(b) Obligation of the Essential Service Provider towards all consumers

(1) The existence of a private transaction shall not derogate, in whole or in part, from the

obligations of the Essential Service Provider towards all consumers, including consumers

who purchase other services from the provider, and including his obligations regarding

electricity safety and reliability.

(2) The Essential Service Provider shall notify producers, suppliers and consumers under private

transactions about any power cuts. Regarding the method of delivering of the notification,

the provisions specified in standard 37 (power cut notification) regarding notification to a

Time and Load Rate consumer shall apply.


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65. Reporting to the Authority

(a) Schedule and method of reporting

Once per month, the System Manager shall submit to the Authority summary information, in

accordance with the format determined by the Authority, regarding the activity of suppliers and

based on the different reports required from them by these standards. In each case, the

information shall include a comparison between the consumption plan and the actual

consumption.


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66. Resolving disputes

(a) appealing in writing to the Authority

In any case of a dispute regarding the application of the provisions of chapter E, the parties,

including the System Manager, the Essential Service Provider, the producer and the supplier,

shall appeal to the professional team at the Authority in writing to examine the dispute and rule

upon it.


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67. Application of the standards

(a) Application of the standards to a producer or a supplier

To dispel any doubt, it is hereby clarified that any standards established by the Authority, or any

standards that will be established by the Authority in the future, shall apply, with the necessary

adjustments if required, to the relationship between the producer or the supplier and the

System Manager and the Essential Service Provider.


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Chapter F: Acquisition of Electricity, Maintenance and

Operating Regime of Holders of an Independent Producer

License

Section A: General

68. General

(a) Acquisition of energy and available capacity from electricity producers

The System Manager shall purchase available capacity and energy, as well as additional services

from producers of electrical energy in accordance with the provisions of the producer’s license,

the Rate Authorization, these standards and any applicable law.

(b) Application to receive available capacity and energy acquisition services

(1) A producer interested in selling available capacity and energy to the System Manager shall

apply to the System Manager in writing, with a copy of the conditional or permanent

license, as the case may be, and the Rate Authorization issued to him by the Authority, and

specify the following information:

(a) Name and address of the producer;

(b) Location of the production facility;

(c) Type of facility and technology;

(d) Operating parameters of the production units in the facility, including, among others:

load change rate of the production units, start-up and shut-down times of the

production units, synchronization time of the units with the network and the minimum

operation times of all production units;

(e) Copy of the Rate Authorization issued to the producer;

(f) Estimated date for commercial operation of the production units in the facility;

(g) Names and contact details of the producers contact persons.

(2) A producer who has not completed his acceptance examinations may submit his request

without the parameters requested in sub-close (d) above. These details shall be updated

following the acceptance examinations.

(c) Signing an acquisition agreement


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(1) At the request of the producer, the System Manager shall be required to sign an acquisition

agreement for the acquisition of energy or energy and available capacity, as the case may

be, prior to the date of commercial operation. Notwithstanding the above, an Essential

Service Provider shall not delay the acquisition of energy or energy and available capacity

from a producer, nor condition it by the singing of an agreement or any other document on

his behalf.

(2) If the producer decides not to sign an agreement for the acquisition of energy or energy and

available capacity with the System Manager, it shall be required to sign an operating

agreement with the System Manager prior to the initial synchronization.

(d) Rate Authorization – validity and applicability

(1) Close to the financial closure date, the holder of a production license shall apply to the

Authority to receive a Rate Authorization for the purpose of completing the financial

closure.

(2) In order to obtain a Rate Authorization, the holder of the license shall submit to the

Authority a written statement by the financing body confirming that the conditions for an

unconditional financial closure and the availability of the senior debt for the benefit of the

project are met in full, as specified in the finance agreement of the entrepreneur’s senior

debt, except for obtaining a Rate Authorization. The Authority may require additional

documents to prove that the Rate Authorization is the only document required to obtain the

full financing of the senior debt.

(3) in case of full self financing for the establishing of the production facility, the license holder

shall present his financial reports to prove the existence of 100% of the capital required to

finance the project with the license holder, as well as a written statement by the capital

owner confirming that the conditions for the availability of the capital for the benefit of the

project are met in full, except for obtaining a Rate Authorization,

(4) The Rate Authorization shall be valid for a period of 30 work days from the date of its issue.

If the license holder does not complete the financial closure during the validity period of the

Rate Authorization, the Rate Authorization, the conditional license and the connection

survey conducted for the license holder shall expire.

(5) If the license holder completes the financial closure within the validity period of the Rate

Authorization and completes the establishment of the facility in accordance with the

milestones specified in his license, the Rate Authorization shall remain valid. The rate

specified in the Rate Authorization shall oblige the System Manager during the entire

validity period of the Rate Authorization, provided that the license of the Rate Authorization

holder is valid.


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69. Communication system – data and speech

(a) Installing communication systems

The Essential Service Provider shall install a communication system for the benefit of the

producer, including end units (RTU) at the production facility, to allow real time switching

operations by the Essential Service Provider, data and instructions transmission regarding the

production facility between the producer and the System Manager, data and instructions

transmission regarding the switching yard between the switching yard and the Essential Service

Provider, as well as (as the case may be) between the producer and the computer system of the

system management supervision, at any time after the production facility begins is operation.

(b) Connecting the production facility to the communication systems

The producer shall connect the production facility to the end unit of the communication system,

in accordance with specifications or standards of the communication and computer systems

provided to him by the Essential Service Provider, to allow real time switching operations by the

Essential Service Provider, as well as (as the case may be) between the producer and the

computer system of the System Manager.

(c) Receiving and transmitting data

The Essential Service Provider shall be responsible to maintain the connection to allow receiving

and transmission data between the System Manager and the producer and between the

producer’s facility and the ESP’s facilities.

(d) Information security

The producer shall take all acceptable measures to protect his computer systems connected to

the supervision by information security means, at his expense and in accordance with the

instruction of the Israel national information security authority.

(e) Maintenance

The Essential Service Provider and the producer shall maintain the communication systems

installed at their facilities as to allow uninterrupted communication with the System Manager,

24 hours per day, by phone, fax and online data transfer, including the operating status of the

production facility (disconnected, connected, active and reactive production, voltage and

current), and including load monitoring and remote control.

(f) Payment for installation of data communication systems

The Essential Service Provider shall charge the producer for the installation of a data

communication system, as specified in this standard, in accordance with the payment specified

in Table of Rates (to be determined).


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70. Contact between the System Manager and the producer

(a) Submitting information

(1) The System Manager and the producer shall exchange operations phone numbers, fax

numbers and e-mail addresses for receiving notifications before conducting the acceptance

examinations. The numbers shall be updated as required and confirmed once per year, on

the last weekday of December.

(2) The producer or System Manager, as the case may be, shall notify each other in advance

about any changes to phone numbers, fax numbers or electronic mail addresses, and

provide an alternative phone number in case of a malfunction.

(b) Means of communication between the producer and the System Manager

The producer and the System Manager shall maintain contact in writing, by fax, electronically or

by phone, in accordance with the circumstances and as agreement between them.

Notwithstanding the above, the System Manager shall be required to be ready to provide

support to representatives of the producer by operations phone and later by writing.

(c) Using an operations phone

(1) The operations phone shall be used for communication with the System Manager only.

(2) Instructions by phone shall be given over the operations phone only, and every message

shall be verbally confirm by the receiving party. All massages by the System Manager over

the operations phone shall be recorded.


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71. Operating the production unit

(a) Operating the production unit

The producer shall operate the production unit in accordance with the specific loading plan

provided to him by the System Manager.

(b) Synchronization, capacity change and disconnection

For the purpose of synchronizing the production unit, changing the unit load, changing the

maintenance schedule of the unit or disconnecting the unit from the network, the producer

shall act in conjunction with the System Manager and with his approval.

(c) Instruction to change the synchronization schedule

The System Manager may instruct the producer, for reasons of maintaining the survivability or

reliability of the electricity system, to bring forward or delay the synchronization of the

production unit with the network or the de-synchronization of the unit, by a not more than 1

hour from the time specified by the producer in the daily plan or from the time specified in the

specific loading plan. For the aforementioned change in the schedule of synchronization, the

System Manager shall pay the producer in accordance with the producer’s quotations, as

specified in standard 91 and in form 2, as the case may be.

(d) Capacity change

The change rate of the production unit’s capacity shall be made in accordance with the unit’s

specification as determined in the acceptance examinations and in accordance with the specific

loading plan, and in irregular cases, in accordance with the instructions of the System Manager.

(e) Irregular cases

In irregular cases of the electricity system, the producer shall operate the production unit in

accordance with the instructions of the System Manager, as specified in standard 124.


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72. Setting parameters for the operation of the facility

(a) Setting operating parameters

The performance of the facility’s units shall be determined in accordance with the operating

parameters of the units as measures in the acceptance examinations conducted in the presence

of representatives of the producer and representatives of the System Manager. The

performance of the units shall be determined, among others, regarding the capacity change

rate, the start-up and shut-down times, the minimum time before renewal of operation in

accordance with the number hours the has operated prior to its shut-down, for the purpose of

integrating it in the production system and for the provision of instructions to the producer by

the System Manager.

(b) Submitting parameters to the Authority

The facility’s operating parameters, as specified in close (a) above, shall be submitted to the

Authority upon successfully passing the acceptance examinations.


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73. Conducting examinations

For the purpose of this standard:

“Producer” – including a holder of a conditional license or a principle permit;

“Period of entry into use” – the period of time in which the unit is operated under a conditional

license for the purpose of conducting facility tests by the System Manager, beginning with the initial

synchronization of the production unit with the electricity network and ending with the completion

of the acceptance examinations;

“Period of examination of the production unit” – the period of time in which the unit is operated

under a permanent production license for the purpose of conducting examinations of the

production unit following malfunctions and/or substantial renovations and ending with the

completion of the acceptance examinations.

(a) Coordination acceptance examinations

(1) The producer shall coordinate the date for conducting acceptance examinations with the

System Manager in advance, in accordance with the provisions of the supplement of the

operation agreement between them.

(2) in case of fear for the survivability of the system or electricity shortage, the System Manager

may request that the producer increase the produced capacity or provide the System

Manager with availability, in accordance with the rate specified in standard 74, during the

period of examination, and regarding the dates in which the examination plan has been

approved by the System Manager, as specified in sub-close (1) above, and the producer is

not expected to operate or only expected to operate partly.

(b) Method for conducting acceptance examinations

The method for conducting the acceptance examinations shall be determined in the operation

agreement between the System Manager and the producer.

(c) Presence of representatives of the System Manager

The acceptance examinations shall be conducted as specified in the operation agreement

between the producer and System Manager, and at the presence of representatives of the

System Manager who will approve or reject their results.

(d) Confirmation for passing the acceptance examinations

The System Manager shall submit the results of the acceptance examination and a confirmation

of the unit successfully passing or failing the acceptance examinations to the authority and the

producer. The confirmation of passing the acceptance examinations shall be a condition to

obtaining a permanent production license. If the facility fails to pass the acceptance


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examinations in accordance with the provisions of the operation agreement, the System

Manager shall specify the reasons for failing the acceptance examinations.


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74. Calculation of payment for acquisition of energy during the period acceptance

examinations

(a) Calculation of payment

(1) Payment for energy transferred by the producer to the network during the period of

acceptance examinations shall be calculated in accordance with the rate for acquisition of

energy during the period acceptance examinations, as specified in Table of Rates 24.6-1

(rate for acquisition of energy during the period acceptance examinations from a

conventional producer or a co-generation producer, by facility and fuel type), or in Table of

Rates 24.6-2 (rate for acquisition of energy during the period acceptance examinations from

a renewable energy producer), by type of facility and use of fossil fuel.

(2) In addition to the payment specified in sub-close (1) above, the System Manager shall pay

producers who agree to operate in accordance with the schedule requested by him, as

specified in standard 73 (a) (2), for each kWh according to the energy rate specified in Table

of Rates 24.6-1 (rate component in Agorot per kWh) regarding the natural gas energy

production rate and in accordance with the type of the facility. To clarify, the additional

payment for energy shall be determined in accordance with the rates for gas use and the

type of the facility even if the producers use diesel fuel. The System Manager may engage

the producer as specified in this sub-close for up to 100 hours per year and a maximum

hourly capacity of up to 250 MW.

(3) The System Manager may guarantee the producer in advance, under standard 73 (a) (2), up

to 100 hours of operation at full load over the period of the acceptance examinations, in

accordance with the rate specified in sub-close (2) above, and the producer shall be

required to be available in accordance with the instructions of the System Manager. The

System Manager may engage the producer as specified in this sub-close for up to 100 hours

per year and a maximum hourly capacity of up to 250 MW.

(4) The rate shall be paid for the amount of electricity measured by the meter at the connection

of the facility to the network during the period of the acceptance examinations and until its

successful completion.

(5) Payment shall be made for the electricity produced by the facility’s production units for

which the acceptance examinations are conducted.

(6) The rates specified in sub-close (2) and sub-close (3) above shall be linked to the consumer

price index and shall be applied after obtaining a permanent production license, as far as

such a license is obtained.


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75. Method of payment for energy transferred to the network during the period acceptance

examinations

(a) Date of issuing bills

The System Manager shall issue a bill to the producer for transferring energy to the network

during the period of the acceptance examinations for a specific month within 10 work days from

the end of the aforementioned month.

(b) Date of payment

Payment to the producer for transferring energy to the network during the period of the

acceptance examinations shall be made within 11 work days from the date of issuing the

producer’s bill.

(c) Interest for delayed payments

For any delay in payments according to the date of payments specified in close (b) above, the

System Manager shall pay the required amounts with interest, as specified in standard 6.

Aid table for determining rates

Parameter Unit Value Explanation

BFUPam Agorot / MMBTU BFUPm * $ exchange rate in Agorot

BFUPm – as specified in the producers Rate Authorization (price of gas for month m in $ per MMBTU).

BLOm Agorot / MMBTU BLOm = Bloton * 100 / 47.183

47.183 is the conversion coefficient from gas ton to MMBTU and Bloton is the excise price per gas ton as established by the Tax Authority.

HRi/j BTU/kWh As specified in the calculation aid table

Determined by the values specified in decisions 1 of meeting 211 and 2 of meeting 241.


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76. Compensation for not connecting producers to the transmission network

(a) Compensation for delay of acceptance examination due to non-connection

For any delay by the Essential Service Provider in the connection of the producer to the

electricity network due to any act or failure of the provider, including failure to meet the

schedules specified for the connection in the standards, and excluding cases due to any act or

failure of the producer, the Essential Service Provider shall pay the producer in accordance with

the following calculation:

(1) For a non-renewable energy producers:

(a) For a delay of up to 3 months: the total available capacity of the facility during this

period multiplied by the rate for available capacity specified in Table of Rates 6.5-1;

(b) This amount shall be deducted from the payments for available capacity at the end of

the acquisition transaction period in accordance with the period of delay;

(c) For a delay of more than 3 months the provisions of standard 141 (a) (liability) shall

apply, and the possibility shall be examined, to use gas paid for the period of delay in

other facilities;

(2) For renewable energy producers:

(a) For a delay of up to 3 months: in accordance with the producer’s rate during acceptance

examinations;

(b) For a delay of more than 3 months: in accordance with the provisions of the producer’s

Rate Authorization;

(3) From time to time, the Authority shall re-examine the rate specified in this standard in

accordance with the terms of gas transactions and other relevant parameters.


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77. Preserving and submitting information

(a) Duty of the ESP and the System Manager to preserve and submit information

(1) The Essential Service Provider and the System Manager shall preserve the information in

meter readings, bills, producer plans, supplier plans, energy loading plans and any economic

data on which they are based, for a minimum period of 7 years.

(2) At the request of a producer, a supplier (regarding his consumers) or a consumer, the

Essential Service Provider and the System Manager, as the case may be, shall provide

information related to the applicant only, and subject to the provisions of the law, not later

than 30 days from the date of the request.

(3) The Essential Service Provider and the System Manager, as the case may be, shall provide

information related to producers, suppliers or consumers to the Authority, subject to the

provisions of the law, and not later than 30 days from the date of the request.


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78. Reporting to the Authority

(a) Schedule and method of reporting

Once per month, the System Manager shall submit to the Authority summary information, in

accordance with the format determined by the Authority, regarding actual energy transmission.

The report shall differentiate between energy supplied to consumers as part of a variable

available capacity for private transactions, energy supplied to the System Manager as part of a

fixed available capacity and a variable available capacity for the System Manager and energy

consumed at the producer’s premises in case of the existence of consumers at the producer’s

premises, and all as specified in these standards.


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Section B: Metering and Bills

79. Fixed payment

(a) Producer’s fixed payment

The producer shall be charged by the System Manager with a “fixed payment”, as specified in

Tables of Rates 7.8-1 and 7.8-2, for issuing and delivering the producer’s bill and for handling the

production and maintenance plans submitted by the producer to the System Manager.


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80. Producer meter installation

(a) Continuous meters

The Essential Service Provider shall install a continuous meter at the terminals of each generator

and at the connection point of the facility to the electricity network. These meters shall allow

the System Manager to conduct remote readings using communication means. The installed

meters shall be capable of recording data in half-hour intervals for a minimum period of 40 days.

(b) Meter installation by the ESP

(1) At the request of the producer, the Essential Service Provider shall install the

aforementioned meters at the production facility within (to be determined) work days.

(2) For the installation of meters, the producer shall pay the Essential Service Provider in

accordance with Table of Rates (to be determined).

(3) For any delay in the installation of meters, the Essential Service Provider shall pay the

producer (to be determined).

(c) Inspection and calibration of meters installed at the production facility

The Essential Service Provider shall inspect the meters installed at the production facility once

per year, and, if necessary, calibrate or replace the metering equipment installed at the facility,

in accordance with the provisions of standard 15.

(d) Installing instruments for remote reading by the ESP

In addition to the installation of meters specified in closes (a) - (c) above, the Essential Service

Provider shall install instruments for remote meter reading, and for their installation and

operation, the producer shall pay the Essential Service Provider the amount specified in Table of

Rates (to be determined).


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81. Reading producer meters

(a) Reading producer meters

Once per month, at the beginning of the month and not later than the 4th of the month, the

System Manager shall read the data recorded by the producer’s meters for the previous month

for the purpose of issuing a monthly bill to the producer.

(b) Daily meter reading

The System Manager may read the producer’s meters as necessary for the purpose of

monitoring the producer’s compliance with the daily production plans.


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82. Issuing bills to producers

(a) Producer bill

Once per month, the System Manager shall issue and deliver a bill to the producer.

(b) Content of the bill

The System Manager shall specify, at least, the following information in the supplier bill:

(1) The amount of energy transferred to the network by the producer according to the

producer’s meter readings;

(2) The fixed payment: as specified in Table of Rates 7.8-1 and 7.8-2;

(3) Calculation of payments to the System Manager due to deviations of the producer from the

annual maintenance plan, in accordance with Table of Rates 6.20-1 (rates for deviation from

the maintenance plan);


equivalent operational availability specified for the producer;


operational parameters, as specified in standard 85;

(6) Total payment to the producer for establishing a fixed available capacity and a variable

available capacity by hours of establishing a fixed available capacity and hours of

establishing a variable available capacity, calculated in accordance with the fixed available

capacity and the variable available capacity provided to the System Manager by the

producer, in accordance with the rates specified in the producer’s Rate Authorization;

(7) Total payment to the producer for acquisition of energy as part of the utilization of fixed

available capacity under the updated specific loading plan, calculated as the total acquired

energy multiplied by the producer’s energy rate specified in the Rate Authorization. The

Calculation shall be given separately for each different demand hour cluster and specify the

hours in which the fixed available capacity was utilized for energy;

(8) Total payment to the producer for acquisition of energy as part of the utilization of variable

available capacity under the updated specific loading plan, calculated as the total acquired

and supplied energy multiplied by the relevant rate according to the half-hour energy

quotations received under the producer’s daily production plan. The calculation shall be

given separately for each half-hour;

(9) Payment to the producer for providing additional services at the request of the System

Manager;


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(10) Payment to the System Manager for providing backup services and additional services to the

producer (to be determined);

(11) Payment for increasing or decreasing the amount of energy planned for production in

accordance with the updated specific loading plan and the real time instructions of the

System Manager;

(12) Calculation of payments to the System Manager and to the producer, as the case may be,

due to deviation by the producer from the energy production in accordance with the

updated specific loading plan;

(13) Calculation of payments to the System Manager due to administrative deviations by the

producer;

(14) Payments and fines due to violation of standards;

(15) Any additional payments specified in the standards.

(c) Reference to the production unit in the bill

To clarify, for each payment article, the bill shall specify the parameters for calculation for each

production unit.

(d) Rate for issuing producer bills

The System Manager shall charge the producer in accordance with the rate for issuing producer

bills specified in Table of Rates 7.7-1.

(e) Application of chapter B of the Book of standards

Regarding the application of the standards in chapter B of the Book of Standards, the producer

bill shall be considered as a consumption bill.

(f) Resolving disputes

In any case of a dispute between the producer and the System Manager regarding the bill or the

data it is based upon, the matter shall be resolved by the professional team at the Authority

within one month from the date of receiving the reply of the System Manager to the objections

of the producer and obtaining the full information required to make a decision. In any case,

payments that are not disputed shall be made by any of the parties and shall not be delayed.


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Section C: Operating regime

83. Meeting availability requirements

In this standard:

“Equivalent availability” =

∑

“Available capacity” – available capacity utilized for energy and available capacity not utilized for

energy but that can be utilized in real time in accordance with the specific loading plan and the real

time instructions of the System Manager regarding an increase or reduction in production;

“Maximum available capacity under site conditions” – in accordance with the acceptance

examinations and based on Table of Rates 19 – 22 in decision 2 of meeting 241.

(a) Meeting availability requirements

(1) The producer shall operate the facility in compliance with all the requirements of availability

specified in his license and in the standards.

(2) If the producer deviates from the availability requirements, he shall pay the System

Manager the amount calculated by the System Manager in accordance with the provisions

of this standard.

(b) Accumulated annual equivalent availability requirements

(1) Except for renewable energy producers, producers shall meet an accumulated annual

equivalent availability for each production unit in the facility of not less than 92% for each

generation unit.

(2) Notwithstanding the above, in the first year of operating the facility, the producer shall

meet an accumulated equivalent availability of not less than 88% for each generation unit.

(3) In co-generation facilities, the values specified in sub-close (1) and sub-close (2) above shall

refer to the entire production facility and not to each generation unit.

(c) Calculating the producer’s compliance with the accumulated annual equivalent availability

(1) Equivalent availability shall be calculated every year for the twelve months beginning on 1

January and ending on December 31. In the first year of operating the unit, a relative

calculation of the equivalent availability shall be made for the period of operation until

December 31 of the same year, but deviation from the availability shall not be considered

for the aforementioned period if the producer meets 88% in the first 12 months after the

start of operation.


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(2) If no deviations of deficiency occur regarding the specific loading plan or the real time

instructions of the System Manager, and unless otherwise proven, the producer shall be

considered as meeting the available capacity specified in the daily production plan.

(3) If deviations of deficiency occur regarding the specific loading plan or the real time

instructions of the System Manager, without prior notification to the System Manager, the

available capacity used for the actual production of energy according to the last

measurement of the meter installed at the terminals of the generator shall be considered as

representative of the available capacity of the unit.

(4) If the producer reports deviations of availability to the System Manager at the time of their

occurrence, the hours for which he reports unavailability shall be counted in the calculation

of hours of unavailability.

(5) In case of a real time malfunction under the specific loading plan of the producer, and when

the handling of the malfunction can be delayed in accordance with the instructions and

schedules of the System Manager, and if, until the time of handling the malfunction in

accordance with the instructions of the System Manager, the unit operates in accordance

with the specific loading plan, the number of hours of unavailability on the day of repairing

the aforementioned malfunction shall be counted, for the purpose of quantifying the

number of hours of unavailability, as half of the actual hours of unavailability. To clarify, the

aforementioned calculation shall apply only to the day in which the repair of the

malfunction takes place, as coordinated with the System Manager.

(6) If repairing the malfunction takes longer than 24 hours, the number of hours of

unavailability shall be counted as half only for the first 24 hours of repairing the

malfunction, and the remaining hours of repairing the malfunction shall be counted in full

for the purpose of quantifying the hours of unavailability of the aforementioned unit.

(7) To clarify, the inspected availability shall be the availability of the production unit for

production using primary and/or secondary fuels only, regardless of the capacity to transfer

energy to the network. From time to time, the System Manager shall conduct test to

examine the availability of the producer in comparison to the producer’s statement in the

production plan.

(8) Producers who meet availability higher than 92% from their second year of operation and

higher than 88% on their first year of operation shall be entitled to accumulate excess

availability percentage and to offset them against years in which the aforementioned

production unit is undergoing a major renovation or other times of shutdown with the

approval of the System Manager.

(9) Meeting the deviations of deficiency delineated in standard 95 shall be considered for

calculation of the available capacity.


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(10) The calculation of unavailability shall be made continuously and accumulatively until the

producer reaches the allowed rates of normative equivalent unavailability. Beyond

aforementioned the rates of unavailability, the producer shall pay the System Manager for

each case of unavailability during the year in accordance with sub-close (f) below.

(d) Calculating the accumulated equivalent availability for a co-generation producer

Notwithstanding the above, the accumulated equivalent availability of a co-generation producer

shall be calculated based on the amount of energy specified in the daily production plans

submitted by the producer to the System Manager, as long as no deviations of deficiency from

the production plan exist. In case of deviations of deficiency from the production plan, the

amount of energy produced according to reading of the meter installed at the terminals of the

generator shall be considered as representative of the available capacity of the facility.

(e) Deviations due to force majeure or the instructions of the System Manager

Notwithstanding the above, deviations from the production plan cause by force majeure or due

to the instructions of the System Manager in an irregular state, including the provisions

specified in the alternative fuel standard, shall not be considered for the purpose of calculating

the accumulated equivalent availability of the producer. Failure to comply with the instructions

of the System Manager regarding operation in an irregular state shall be counted in the number

of hours of unavailability.

(f) Payment for deviation from the equivalent availability for all technologies

The Essential Service Provider shall calculate payments for deviations from the accumulated

equivalent availability of a producer by using the Unit Commitment software available as part of

the system management, or any other software approved by the Authority that calculates the

effect of unavailability on the costs of the entire system in real time, as follows:

(1) Software calculations shall be made in retrospect, using real time data (ex post) for every

half-hour in which a deviation of availability occurs;

(2) Calculations of deviations shall include the difference in system costs due to failure of all

producers to meet their required availability in each measured half-hour;

(3) Calculations of deviations shall include real time producer deviations of availability beyond

the normative recognized availability (88% for the first year and 92% from the second year);

(4) Calculations of costs for the entire system due to unavailability of production units shall

differentiate between the unavailability of a producer required to produce energy according

to the specific loading plan and the real time instructions of the System Manager for

additional production, and the unavailability of a producer required to be available but not

to produce energy;


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(5) Producers who are required to produce energy according to the specific loading plan and

the instructions of the System Manager shall pay the Essential Service Provider for

deviations of availability. The payment shall be calculated by the deviation of availability in

MW for every measured half-hour multiplied by the average cost of each MW for each half-

half due to the weighted unavailability of all the units of the system required to produce

energy in that half-hour but unavailable;

(6) Producers who are not required to produce energy according to the specific loading plan

and the instructions of the System Manager shall pay the Essential Service Provider for

deviations of availability. The payment shall be calculated by the deviation of availability in

MW for every measured half-hour multiplied by the average cost of each MW for each half-

half due to the weighted unavailability of all the units of the system not required to produce

energy in that half-hour and unavailable;

(7) Producers shall not be entitled to receive payment for available capacity for deviation from

the equivalent availability;

(8) If the result of the run is negative, i.e. the unavailability entitles the producer to

compensation, the producer shall not receive any compensation and shall not be entitled to

any payment for available capacity for deviation from the equivalent availability;

(9) The undertaking of the System Manager regarding natural gas as part of the fixed available

capacity shall be adjusted in accordance with the terms of the gas transaction and

considering the actual equivalent availability of the producer.


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84. Meeting the reliability requirements

In this standard:

“Forced interruption” – any of the following:

1. A full or partial interruption of production in the generation unit not in accordance with the

specific loading plan or the real time instructions of the System Manager, including a break

caused by failure to comply with the provisions of the production license, but not by any of

the causes specified in the force majeure standard or by the electricity network;

2. Failure to start-u Rates Authorization generation unit intended for operation according to

the specific loading plan, not caused by any of the causes specified in the force majeure

standard or by the electricity network.

(a) Meeting the reliability requirements

The producer shall operate the facility while meeting all the requirements of reliability specified

in his license and in the standards.

(b) Number of forced interruptions

(1) The number of forced interruptions of each generation unit (including partial interruptions)

shall not exceed 7 interruptions per year.

(2) Notwithstanding the above, in the facility’s first year of operation, the number of forced

interruptions of each generation unit (including partial interruptions) shall not exceed 20

interruptions per year.

(3) In case of close forced interruptions, including two interruptions within a single day or

within a shorter period, the System Manager shall have the authority to instruct the

producer to conduct acceptance examinations of the unit in which the forced interruptions

occur.

(c) Conducting acceptance examinations due to deviation from the reliability requirements

For each forced interruption (including partial interruptions) beyond the number of

interruptions specified in close (b) above, the producer shall be required to conduct acceptance

examinations lasting between 12 and 24 hours for each unit. During the examinations the

producer shall not be entitled to receive payment for available capacity. The producer shall be

entitled to the rate for acceptance examinations for the duration of the acceptance examination

that shall be not less than 12 hours and not more than 24 hours, unless the producer does not

successfully completes the examinations within this period and requires an extension of the

period in order to complete them.

(d) Application of the standard to producers


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To dispel any doubt, it is hereby clarified that this standard shall apply to all types of facilities

connected to the transmission network, including conventional facilities, co-generation facilities

and renewable energy facilities.


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85. Meeting the operating parameters

In this standard:

“Deviation from an operating parameter” – any of the following:

1. A deviation of more than 20% from the load change rate in case of an instruction from the

System Manager to change the load of a production unit or in case of a load change in

accordance with a daily plan (the load change rate shall be specified in the producer’s

license);

2. A deviation of more than 10% in the response to a frequency change in a production unit

compared with the frequency response time specified in the producer’s license;

3. A deviation from the start-up times determined in the acceptance examinations;

4. A deviation from the unit’s synchronization times with the network (regarding the time

between 5 minutes after receiving the notification and the completion of the

synchronization).

(a) Payment for deviation from an operating parameter

In any case where the producer’s production unit deviates from an operating parameter, as

specified in sub-closes 1 and 2 of the definition of a deviation from an operating parameter

provided above, more than 5 times per year, and in any case where the producer’s production

unit deviates from an operating parameter, as specified in sub-closes 3 and 4 of the definition of

a deviation from an operating parameter provided above, and for any additional cases of

deviation from an operation parameter during the year, the System Manager shall charge the

electricity producer as follows:

(1) Duration of the deviation * cost of the deviation’s effect on the system;

(2) The cost of the deviation’s effect on the system shall be calculated similarly to the

calculation of the effect a deviation from the equivalent availability.


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Section D: Maintenance

86. Regulations for submitting a maintenance plan

(a) Maintenance schedule

(1) The maintenance of production units shall be conducted on the dates specified in the

mandatory maintenance plan, and in case of coordinating an alternative maintenance plan,

on the dates specified in the alternative maintenance plan, as specified in this standard.

(2) The System Manager shall be entitled to set dates in which maintenance shall not be

conducted.

(b) Submitting a request for a maintenance plan

(1) Once month before beginning the commercial operation of the facility and once per year, on

1 June, the producer shall submit to the System Manager a request for a maintenance plan

schedule and duration for the next three calendar years (starting on the following January).

If 1 June falls on a Saturday eve, Saturday or Holyday, the request shall be submitted on the

previous weekday.

(2) The requested maintenance plan shall specify the planned dates for conducting

maintenance to the facility during the three aforementioned years, as illustrated in the

sample form attached to standard 88.

(3) Requested maintenance plans shall be submitted separately for each of the facility’s

production units.

(4) The information required by the System Manager in order to set the maintenance dates for

the producer’s units shall be determined in the operating agreement between the parties.

(5) Cases of partial maintenance, where only part of the production unit is shut down, shall be

agreed upon in the operating supplement.

(c) Handling producer requests and delivering mandatory maintenance plans

(1) The System Manager shall integrate the maintenance plans submitted by the producer with

the maintenance plans of other units in the system, taking into considerations the requests

of the producer, and shall deliver to the producer a mandatory maintenance plan for the

following calendar year (starting on the following January) within 45 workdays. This plan

shall oblige the producer in his operation during the aforementioned year.

(2) If a request for an annual maintenance plan is not submitted before the date specified in

close (b) above, or is not submitted at all, the producer shall pay an administrative fine as

specified in standard 97 and his integration in the general maintenance plan shall be made

at the discretion of the System Manager.


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(d) Changes to the mandatory maintenance plan

(1) Changes to the mandatory maintenance plan at the request of the producer shall be made

with the approval of the System Manager by submitting a request three months prior to the

date of the planned maintenance.

(2) If the System Manager approves the request to make changes to the mandatory

maintenance plan, he shall deliver a written notification regarding the change to the

maintenance plan to the producer, and the approved change shall be considered part of the

mandatory maintenance plan.

(3) For reasons of system survivability, and up to 3 days prior to the scheduled maintenance,

the System Manager may instruct the producer to delay the scheduled maintenance by up

to 7 days. The System Manager shall pay the producer for the cost of the delay in

accordance with the rate determined by the Authority (to be determined).

(4) In extremely exceptional cases, and with the approval of the Authority, the System Manager

may instruct the producer to delay the scheduled maintenance with a 1 day advance

notification. The System Manager shall pay the producer for the cost of the delay in

accordance with the rate determined by the Authority (to be determined).

(e) Alternative maintenance plan

For reasons of system needs and electricity demand, the System Manager may coordinate with

the producer an alternative maintenance plan prior to the scheduled maintenance.


276

87. Deviation from the mandatory maintenance plan

(a) Deviation from the mandatory maintenance plan

Producers are required to notify the System Manager in advance about any expected deviation

from the mandatory maintenance plan, including any delay, advancement or change in the

maintenance schedule specified in the plan.

(b) Deviation approval

If the System Manager finds that the deviation is consistent with the needs of the system, he

shall approve the deviation, and the producer shall not bear any costs due to the deviation. If

the System Manager does not approve the deviation, the producer shall act in accordance with

the schedule specified in the maintenance plan.


277

88. Payments for deviation from the maintenance plan

(a) Unauthorized deviation

If the System Manager does not authorize the deviation, or if the producer does not notify the

System Manager about the deviation, the producer shall not be entitled to receive payment for

available capacity for the hours of deviations and shall reimburse the System Manager for the

cost of the damage caused by the deviation, in accordance with the calculation specified in

standard 83 (c) (Calculating the producer’s compliance with the accumulated annual equivalent

availability).

(b) Calculating the equivalent availability for the maintenance period

The maintenance period shall be taken into consideration for the purpose of calculating the

accumulated equivalent availability of the unit, as follows:

(1) If maintenance is conducted on the dates specified in the mandatory maintenance plan, or if

the System Manager approves a deviation from the mandatory maintenance plan, only the

actual period in which the unit is not available shall be considered;

(2) If maintenance is conducted on dates other than the dates specified in the mandatory

maintenance plan without the approval of the System Manager, the actual period of the

maintenance shall be considered, including any period in which the unit is unavailable due

to conducting maintenance on dates that are not approved by the System Manager for the

maintenance plan.


278

Request for a maintenance plan

Request for a maintenance plan for unit .................... of facility .................... for the years ....................

Request for mandatory year ....................

Name of the producer ....................

Production facility no. ....................

Unit ....................

Man

dat

ory

yea

r

Year Unit’s available capacity (MW) on the maintenance date

Reason for planned maintenance

From date Hour Until date Hour

2009

Esti

mat

ed d

ates

2010

2011

Request for an annual maintenance plan for a unit

__________ __________

Producer’s signature Date


279

89. Premises maintenance by the Essential Service Provider

(a) Premises maintenance plan

The Essential Service Provider shall coordinate the premises maintenance and the maintenance

of the lines connecting the facility to the electricity network with the maintenance schedule of

the production facility, or with the hours in which the producer is not producing according to

the maintenance plan and the daily production plan.

(b) Coordinating the premises maintenance

(1) Once per year, not later than 30 November, the System Manager shall deliver to the

producer the premises maintenance plans under the responsibility of the Essential Service

Provider. The plans shall refer to the following calendar year (starting on the following

January).

(2) If the production facility, in whole or in part, is unable to produce electricity due to the

premises maintenance on other times than the times specified in close (a) above, but is

available on these times, the producer shall be entitled to receive payment in accordance

with the provisions of standard 141 (a) (liability).


280

Section E: Producers Connected to the Transmission Network

90. Daily plan for available capacity and production of a facility (“weekly production plan”)

(a) Schedule for submitting a weekly production plan

On every Thursday, or, if Thursday is a Holyday, on the last weekday prior to the

aforementioned Thursday, before 10:00, the producer shall submit to the System Manager a

weekly production plan in half-hours, specifying the projected available capacity and/or

production of each one of his production units for each day of the following week.

(b) Method of submitting the weekly production plan

(1) The weekly production plan shall be submitted on a single form, depending on the type of

the producer, in accordance with the forms attached to this standard.

(2) The System Manager may create alternative forms to the forms attached to this standard,

provided that he obtains the authorization of the Authority.

(c) Submitting the weekly production plan

(1) The weekly production plan is intended for purposes of planning only.

(2) Notwithstanding the above, if the producer does not submit a daily production plan before

the due date, the plan submitted for that day as part the weekly plan shall be considered by

the System Manager for the purposes of establishing loading plans and settling with the

producer.


281

Weekly production plan for the week between __ / __ / __ and __ / __ / __

for a producer of available capacity and energy

Weekday ………………..………………..

Name of the producer ………………..………………..

Production facility no. ………………..………………..

Production unit no. ………………..………………..

__________ __________


Weekly plans shall not contain quotations for energy production from the variable capacity for the Essential Service

Provider, but only a quantitative report.

Variable available capacity up to 10% and over 10% shall be distinguished.

From hour

Unit’s available capacity (MWh) Planned production for all private transactions (MWh)

Supplier to which electricity is sold

Limitations: prior notice time for changes in gas consumption to a plan submitted to the gas supplier for increasing or decreasing gas quantities, reporting sensitive conditions of the unit, notification of planned shut-down of the unit

Fixed available capacity

Variable available capacity distinguished by variable capacity of up to 10% and over 10%

Supplier to which energy is sold

Energy sold to the supplier

for Essential Service Provider

For private transactions

0:00

00:30

1:00


282

Weekly production plan for the week between __ / __ / __ and __ / __ / __

for a producer of energy

Weekday ………………..………………..



__________ __________


Sale of electricity produced at the facility for consumers who are on the premises and sale of electricity for producers

in private transactions beyond the connection point shall be separated.

From hour

Facility’s available capacity (MWh)

Energy production at the facility

Voluntary transaction with the System Manager (MWh)

Production of energy for transmission into the network by the rate specified in the Rate Authorization

Production of energy for private transactions (MWh)

Limitations: prior notice time for changes in gas consumption to a plan submitted to the gas supplier for increasing or decreasing gas quantities, reporting sensitive conditions of the unit, notification of planned shut-down of the unit

Supplier to which energy is sold

Energy sold to the supplier plus loses

00:30

01:00


283

91. Daily plan for available capacity and production of a facility or production unit (“weekly

production plan”)

(a) Schedule for submitting a daily production plan

On every day after the start of commercial operation, before 10:00, the producer shall submit to

the System Manager a daily production plan in half-hours, specifying the projected available

capacity, planned production and method of conducting changes to the aforementioned plan,

for each production unit for 24 hours, from 00:00 until 24:00, for the next day in case of a

weekday, or for the next weekday in case of a holyday or on Thursday.

(b) Submitting the daily production plan

(1) The daily plan for a producer operating with available capacity and energy shall be

submitted on form 1, and for a producer operating with energy on form 3, as illustrated in

the forms attached to this standard.

(2) In case of a steam turbine type production unit, the plan shall refer to the gas turbine unit

and the relative part of the steam turbine derived from its operation as a unit in a combined

cycle.

(3) In addition to the daily plan, producers working with the available capacity and energy

method shall submit quotations for engaging the variable available capacity for the Essential

Service Provider and quotations for increasing and decreasing the capacity in relation to the

specific loading plan, on form 2, as illustrated in the forms attached to this standard.

(4) In the submitted daily plans, producers shall report any existing constraints, including prior

notification dates and changes in gas quantities with the gas supplier.

(5) For the purpose of the specific loading plan, conventional producers are required to offer

quotations for all variable available capacity, including variable available capacity not

intended for utilization as energy for private transactions.

(6) Conventional producers are required to offer quotations for increasing their produced

capacity in real time for all remaining variable available capacity under the specific loading

plan.

(7) Conventional producers are required to offer quotations for decreasing their produced

capacity for all the energy intended for production by the unit in accordance with the

specific loading plan.

(8) The order of decreasing capacity according to the available capacity shall be determined by

the System Manager.

(9) Conventional producers shall be required to have variable available capacity operated by

diesel fuel under the updated specific loading plan, in case their offers to utilize gas variable


284

available capacity are rejected under the specific loading plan, and they are unable to

conduct a spot gas transaction or rely on market storage.

(10) In case of a conventional producer with a number of production units operating under

variable available capacity of 100%, or in case of a conventional producer with a single

production unit, and if the aforementioned units are intended to operate under partial load

and the producer is unable to increase his capacity due to limitations of his gas transactions,

or conduct a spot transaction in the market and increase the capacity with a prior notice of

less than one hour, the System Manager may require the producer in real time to change

the format of unit loading to full loading so that the remaining units can be loaded with

variable capacity by diesel fuel, or, in case of a producer with a single production unit, to

switch to full load with alternative fuel. In this case, the producer with a number of

production units operating under variable available capacity of 100% shall be required to

decrease the capacity in units of partial production and increase the capacity in other units.

(11) The System Manager may instruct a conventional producer in real time to increase or

decrease his capacity in accordance with the producer’s quotations, and the producer shall

act in accordance with the instructions of the System Manager.

(12) Any change to the capacity due to real time instructions from the System Manager to

decrease capacity to under the intended capacity for private transactions shall not derogate

from the private transaction.

(13) Co-generation producers are required to offer quotations for decreasing and increasing

capacity considering the thermal constraints of the facility.

(14) The maximum price offered by a producer for decreasing capacity produced for the benefit

of the System Manager under fixed or variable available capacity shall not exceed 100%

BFUCgas, as specified in decision 2 of meeting 241, supplement A, close 10, tables 15 and

16, as specified in the producer’s Rate Authorization.

(15) For decreasing the available capacity used to a private transaction, the producer shall

specify the price he is willing to pay for decreasing his capacity to under the production plan

for a private transaction.

(16) The maximum price for utilizing variable available capacity to energy, and for increasing

produced capacity in relation to the real time gas specific loading plan, shall be in

accordance with the rates specified in Table of Rates 6.5-2 (maximum energy rate for a

producer selling energy out of the variable available capacity per acquired kWh), as specified

in the producers Rate Authorization.

(17) Quotations for utilizing available capacity to energy shall be provided in ascending order of

prices per block, as specified in form 2.

(18) Quotations for decreasing capacity shall be provided in descending order.


285

(19) Quotations by conventional producers for each half-hour for utilizing available capacity to

energy shall be provided for a minimum amount of offered energy (quotations for energy

blocks) of 25 MW for each energy offer, except for the first and last blocks.

(20) Priorities regarding utilization of quotations and production capacity changes for

independent producers shall be decided by the System Manager.

(c) Creating alternative report forms

The System Manager, based on his professional opinion and with the approval of the Authority,

may create a unified report form for obtaining the required information from each producer for

the purpose of planning station loads.


286

Form 1

For a producer of available capacity and energy

Daily production plan for ………………..………………..




From hour

Unit’s available capacity (MWh) production for private transactions** (MWh)

Limitations: prior notice for changes in gas consumption to a plan submitted to the gas supplier for increasing or decreasing gas quantities, reporting sensitive conditions of the unit, notification of planned shut-down of the unit

Fixed

available

capacity

Variable available capacity

Energy sold to all supplier

For the

System

Manager

For private transactions

00:00

00:30

01:00

__________ __________


In this column the producer shall specify the amount of available capacity provided to the System Manager only.

Specification of his quotations for different blocks of energy for his engagement by the System Manager shall be

submitted in form 2 below. In case of a steam turbine type production unit, the plan shall refer to the gas turbine unit and the relative part of the

steam turbine derived from its operation as a unit in a combined cycle.

The daily production plan shall present the part intended for fixed availability and variable availability for the System

Manager and private transactions. Another daily plan shall present the total aggregated energy intended for private

transactions and the names of suppliers and the energy allocated to each one of them.



287

The amount of energy for each supplier shall be specified in a separate plan or in this plan, at the discretion of the

System Manager.


288

Form 2

For a producer of available capacity and energy

Quotations for providing variable available capacity to the System Manager




from hour ……………… until hour ..………………..

Producer quotation for the System Manager for providing variable available capacity to the System Manager by order of quantity in MWh

Producer quotation for the System Manager for payment to the producer for decreasing production in real time

Capacity decrease rate

Producer quotation for the System Manager for payment to the producer for increasing production in comparison with the specific loading plan, considering the advance notification time for increasing capacity (in case of inability to conduct spot transactions in the market or use of gas under other storage, the normative price specified in the Rate Authorization for diesel fuel shall be given)

Capacity increase rate

Capacity increase prior notice time

Quantity Price per MW in NIS

Quantity (referring to the reduced capacity from the planned production capacity)

Price per MW in NIS

Quantity (referring to the increased capacity from the planned production capacity)

Price per MW in NIS

Example: 50

Minimum block

Up to 20 MW

50 – 100 Between 20 and 40 MW

100 – 150 Between 40 and 60 MW

150 – 200

200 – 250

__________ __________



289

This form may be submitted twice with the required changes – once for quotations required to establish a specific

loading plan, and a second time for real time operation under the specific loading plan.


In case of an offer to decrease the available capacity to under the capacity intended for a private transaction, the

producer shall specify the price he is willing to pay for the decrease (as he will continue to receive payment from his

supplier for the private transaction but will produce less).


290

Form 3

For a producer of energy

Daily production plan for ………………..………………..



From hour Facility’s available capacity (MWh)

Available capacity used for energy transaction offer under a voluntary transaction

Total energy produced by the facility

Energy transferred to the network (not for private transaction) in accordance with the rate specified in the Rate Authorization

Energy production for private transactions* (MWh)

Limitations: prior notice for changes in gas consumption to a plan submitted to the gas supplier for increasing or decreasing gas quantities, reporting sensitive conditions of the unit, notification of planned shut-down of the unit

Energy quantity

Acquiring supplier

00:30

01:00

__________ __________


As part of the daily plan, the producer shall report under the column “Energy production for private transactions

(MWh)” the amount of energy (in MWh) planned for production for private transactions.


291

The amount of energy reported under the column “Energy production for private transactions (MWh)” shall be

identical to the amount of energy reported in the consumption plans of the suppliers with whom the producer has

signed a private transaction.


292

92. Changes to the production plan by the producer and supplier

(a) Schedule of change

If necessary, producers who submit a consumption plan before 10:00 may submit a request to

the System Manager to make changes to the production plan, before 12:00 on the same day.


293

93. The general loading plan

(a) Publishing the general loading plan

(1) Every day at 14:00, the System Manager shall publish through the internet the general

loading plan for all production facilities on the market (including stations and facilities of the

Essential Service Provider) for the next day (hereinafter: “general loading plan”).

(2) The System Manager shall publish the amount of MW intended for production by the

general loading plan of all production units for every half-hour.

(3) The System Manager shall publish the system marginal cost for the previous day (ex post)

for every half-hour under the general loading plan of all the production units on the market.

(4) The identity of proposers, the rate and the identity of producers whose proposals were

accepted, shall not be specified as part of the aforementioned information.

(5) On Thursdays and Holyday evenings, a general loading plan shall be published for every day

following the day of publication until and including the next work day.

(b) Establishing the general loading plan

Station loading shall be made on the basis of non-discriminatory economic considerations, in

accordance with the needs and constraints of the System Manager, including energy prices and

the minimization of economic costs principle, contractual obligations by standards and law

(Must Run agreements), stations performance, including the rate of decrease or increase, the

minimum time for station operation under different loads, planned works on the transmission

network that influence energy transmission capacity and the preservation of the system’s

survivability and reliability.

(c) Updating the general loading plan

(1) The System Manager shall update and publish the general loading plan between 14:00 and

the end of the work day, and the specific loading plans shall be updated accordingly once

per hour as a result of any changes to the system.

(2) Updating the general loading plan and the specific loading plans shall be made in

accordance with the quotations submitted to the System Manager before 14:00 relating to

real time operation.

(3) Updating and publishing the specific loading plans shall continue during weekends and

holydays, in accordance with the provisions of sub-close (1) and sub-close (2) above.

(d) Preventing discrimination and abuse of power


294

In establishing the general loading plan, the System Manager shall be impartial and act in good

faith and without prejudice, providing equal opportunity to different facilities without giving

preference to the production units of the Essential Service Provider.

(e) Resolving disputes

Without derogating from the provisions of standard 126 (resolving disputes), In any case of a

dispute between an independent producer and the System Manager regarding the loading order

of facilities and the acquisition of energy offered by different producers accordingly, the

producer may appeal to the professional team at the Authority, after applying to the System

Manager and the rejection of his appeal, 3 months after the event. The matter shall be

examined and resolved by the professional team. If the professional team decides that the

appeal by the producer or supplier is justified, the System Manager shall compensate the

producer or supplier in accordance with the decision of the professional team at the Authority.


295

94. The specific loading plan

(a) Schedule for submitting the specific loading plan to the producer

On each day in which a daily production plan is submitted, before 14:00, the System Manager

shall deliver a specific loading plan to the producer relating to the operation of the units in his

facility. On Thursdays and holyday evenings, the specific loading plan delivered to the producer

shall be for the following days until and including the next work day.

(b) Updating the specific loading plan

(1) The System Manager shall update the specific loading plan and deliver it to the producer

whenever it is changed.

(2) Any changes to specific loading plans after their initial publication time (14:00 for the

following day) shall be made in accordance with the quotations submitted by producers

relating to real time operation of the units.

(3) Updating and publishing the specific loading plans shall continue during weekends and

holydays, in accordance with the provisions of sub-close (1) above. During work days, the

specific loading plan shall also include the real time requirements of the supervisor, and

shall become the updated specific loading plan. On the day following a work day, the

updated specific loading plan shall be the basis for any settlement.


296

95. Payments for deviation from the specific loading plan – surplus and deficiency

(a) Calculating payments for deviation from the loading plan

(1) for deviations from the updated specific loading plan, including the instructions of the

System Manager to the producer to update a specific loading plan by increasing or

decreasing the production capacity in accordance with the offers of a conventional

producer, the conventional producer shall pay the System Manager (in case of production

deficiency) or the System Manager shall pay the producer (in case of production surplus) the

following rates:

(a) if actual production is increased by up to 2.5% of the amount specified in the updated

specific loading plan, the System Manager shall accept the quotation for utilization of

variable available capacity submitted by the producer for the purpose of establishing

the plan, and the energy rate specified in the Rate Authorization for a producer of a

fixed available capacity;

(b) For any surplus deviation greater than the deviation specified in sub-close (a) above, the

producer shall not receive payment;

(c) If actual production is decreased by up to 2.5% of the amount specified in the updated

specific loading plan, the producer of a variable available capacity shall pay the System

Manager in accordance with his quotation for capacity decrease, and a producer of a

fixed available capacity shall not pay for the aforementioned production deficiency in

relation to the updated specific loading plan;

(d) For any deficiency deviation greater than the deviation specified in sub-close (c) above,

the producer shall pay the System Manager the system’s marginal cost Ex Post minus

the producer’s accepted quotation for a variable available capacity for energy

production, and minus the energy rate specified in the Rate Authorization for a

producer of a fixed available capacity, and the system’s marginal cost Ex Post in case of

a private transaction, as the case may be;

(e) If the difference between is marginal cost and producer’s accepted offer to the System

Manager for a variable available capacity for production, and the energy rate specified

in his Rate Authorization in case of a fixed available capacity, is negative, the producer

shall not be entitled to receive payment form the System Manager.

(2) for hourly based deviations (in a half-hour calculation the values should be divided by two)

from the updated specific loading plan, including the instructions of the System Manager to

the producer to update a specific loading plan by increasing or decreasing the production

capacity in accordance with the offers of a co-generation producer, the co-generation

producer shall pay the System Manager (in case of production deficiency) or the System

Manager shall pay the producer (in case of production surplus) the following rates:


297

(a) For a co-generation producer with a connected load under 50 MW:

(1) For an increase in actual production of up to 6 MWh over the specification of the

updated specific loading plan, the System Manager shall pay the producer in

accordance with the normative rate specified in his Rate Authorization;

(2) For any surplus deviation greater than the deviation specified in sub-close (1) above,

the producer shall not receive payment;

(3) For an decrease in actual production of up to 6 MWh under the specification of the

updated specific loading plan, the producer shall not pay the System Manager for

the production deficiency;

(4) For any deficiency deviation greater than the deviation specified in sub-close (3)

above, the producer shall pay the System Manager the marginal cost Ex Post minus

the rate specified in the Rate Authorization for a c-generation producer;

(b) For a co-generation producer with a connected load over 50 MW, the payments

specified in closes (1) – (4) above shall apply in case of deviations of up to 6 MWh for a

planned production of up to 50 MWh, and for every additional 10 MWh to the

production plan, 1 MWh shall be added to the deviations specified in sub-closes (1) – (4)

above;

(c) In case of a co-generation producer operating in accordance with standard 107 (c) (sale

of surplus capacity in a co-generation facility), settlement shall be made in accordance

with close (a) (1) of this standard regarding his part of the voluntary transaction with the

System Manager;

(d) If the difference between is marginal cost and the co-generation producer’s rate

specified in his Rate Authorization is negative, the co-generation producer shall not be

required to pay the System Manager.


298

96. Obligation to provide reactive capacity to the System Manager

(a) Providing reactive capacity

At any time, the System Manager may request that a producer provides reactive capacity to the

network within the limits corresponding to the technical conditions of the production unit’s

connection to the network, and the supplier shall be required to meet this request.

(b) Payment to producers

(1) Producers shall be entitle to receive payment for the provision of reactive capacity only if

the provision of reactive capacity entails a reduction of the active capacity transferred to the

network in relation to the planned production plan submitted to the System Manager, and

capacity reduction due to the provision of reactive capacity shall not be considered a

deviation from the specific loading plan.

(2) In case of a fixed available capacity producer, the producer shall be entitled to receive

payment for fixed available capacity and different costs derived from the acceptance

examinations for the reactive capacity parameter.

(3) Payment to producers, in case of provision of reactive capacity entailing the reduction of

active capacity in accordance with the specific loading plan and the instructions of the

System Manager, shall be made according to the amount of the producer’s quotation for

capacity decrease.


299

97. Administrative deviations

(a) Administrative deviations

(1) For each day of delay in the submission of a production or consumption plan, as specified in

chapter F section E of the Book of Standards, the producer or supplier shall be pay the

System Manager the sum of 4,500 NIS.

(2) For each case of failure to submit a daily production or supply plan, as specified in chapter F

section E of the Book of Standards, the producer or supplier shall be pay the System

Manager the sum of 6,000 NIS.

(3) For each day of delay in the submission of a maintenance plan, as specified in chapter F

section D of the Book of Standards and in standards 89 and 92, the producer or the System

Manager, as the case may be, shall be pay the System Manager or the producer, as the case

may be, the sum of 4,500 NIS.

(4) For each case after the third case in the same month of submitting inaccurate data to the

System Manager regarding available capacity, in spite of receiving a written warning from

the System Manager, the producer shall pay the System Manager the sum of 10,000 NIS.

(5) For each case of providing inaccurate reports to the System Manager, after receiving a

written warning from the System Manager, the producer shall pay the System Manager the

sum of 4,500 NIS.

(6) For each case of failure to provide the required reports to the System Manager, the

producer shall pay the System Manager the sum of 4,500 NIS.

(7) For failure to report in real time any changes in the performance of the unit, such as

available capacity or load change rate, the producer shall pay the System Manager the sum

of 4,500 NIS.

(8) If any of the cases specified in sub-closes (1) – (7) above occur under the conditions of an

irregular state, the sums specified in sub-closes (1) – (7) above shall be tripled.

(b) Linkage of rates for administrative deviations

All rates for administrative deviation shall be linked to the consumer price index (base index =

102.5).


300

98. Producer preliminary survey for gas consumption quantities under fixed available capacity

In standards 98 to 101, the term “producer” shall mean – the holder of a conventional conditional

license.

(a) Application to the Essential Service Provider

Any Producer interested in receiving information regarding the quantities of gas the System

Manager intends to commit to under a fixed available capacity provided by the producer to the

System Manager, shall apply to the System Manager to request a preliminary survey for the

natural gas consumption quantities (hereinafter: “preliminary gas consumption survey”).

(b) Required information

As part of the application for a preliminary gas consumption survey, the producer shall provide

the System Manager with the following information, updated as of the date of the application:

(1) Details of the folder of the conditional license;

(2) Copy of the conditional license;

(3) Configuration of the production facility he intends to establish, including, among others, the

models of the gas turbine units and the steam turbines and return boilers (if any exist), the

models of generators, equipment manufacturers for each of the production units intended

to provide fixed available capacity and expected operating parameters for each production

unit (electrical efficiency, capacity change rate, start-up and shut-down times and other

operating constrains);

(4) The percentage of the connected load out of the total connected load of all production unit

operated in the format of a fixed and variable capacity, in accordance with the provisions

specified in standards 101 – 106 below;

(5) The main terms of the gas transaction offered to him by the gas supplier, including, among

others: gas quantities (total for the entire term of the agreements, annual, monthly, weekly,

daily, hourly maximum and minimum), gas consumption change rate, minimum undertaking

under the gas agreement (T.O.P undertaking), gas prices throughout the term of the

agreement (including linkage mechanism), additional terms such as make up gas and carry

forward;

(6) Any additional details required by the System Manager for the purpose of the examination.

(c) Confirmation of receiving the application

The System Manager shall deliver to the producer a confirmation for receiving the request for a

preliminary gas consumption survey as soon as possible and not later than 5 work days after



301

(d) Payment

For conducting a preliminary gas consumption survey, the producer ordering the survey shall

pay the sum of 50 thousand NIS, linked to the consumer price index (base index = 102.5).

(e) Schedule for conducting a preliminary gas consumption survey

The System Manager shall conduct the preliminary gas consumption survey for the producer not

later than 30 work days from the date of receiving payment from the producer, provided that

the information required in close (b) above has been provided.

(f) Content of the preliminary gas consumption survey

(1) The preliminary gas consumption survey shall be based on current market conditions, and

shall include all the relevant information in the market relating to production facilities

operating under a permanent license or a conditional license that have received a

permanent Rate Authorization at the time of conducting the survey.

(2) For the purpose of conducting the survey, the System Manager shall the software tools and

information available to him.

(3) The results of the preliminary gas survey shall include the estimated gas quantity that the

System Manager intends to use each year as part of the fixed available capacity during the

term of the agreement.

(g) Validity of the preliminary gas consumption

The preliminary gas consumption survey shall be an indication of the quantity of gas the System

Manager intends to use as part of the fixed available capacity, but shall be valid only under the

circumstance at the time of conducting it.


302

99. Commitment to acquire gas quantities under fixed available capacity – general gas survey

and binding gas survey

(a) General gas survey by the System Manager

Three times per year, on the last week of December, April and August, the System Manager shall

publish a general gas survey, to be valid until the publication of the next survey, presenting,

among others, only indicative results of the gas quantities required by the system from new

combined cycle or open cycle production facilities, if any are to join the system. At these days

the gas quantities that the System Manager intends to use throughout the year as part of the

fixed available capacity during the period of the agreements shall be given to holders of

conditional licenses before financial closure, who have applied to the System Manager with a

request for a binding gas survey, as specified in close (b) below, and as required by them under

the fixed available capacity. The gas survey shall be based on the most updated data available to

the System Manager and shall include existing gas transactions, gas transactions specified in the

Rate Authorizations and data and instructions given to the System Manager by the professional

team at the Authority.

(b) Binding gas survey

(1) Close to the date of financial closure, the holder of a conditional license shall apply to the

System Manager in order to obtain a binding gas survey for the gas quantities the System

Manager intends to use throughout the year as part of the fixed available capacity during

the period of the agreement (hereinafter: “binding gas consumption survey”).

(2) The System Manager shall conduct the binding gas consumption survey after receiving the

producer’s complete application, including all the required information specified below and

the payment for the survey, and shall inform the producer, within 30 days from receiving all

the required information, including the approval of the professional to the premises for

conducting the survey, about its results.

(c) Information required from the producer in order to submit a request for a binding gas survey

(1) In order to obtain a binding gas survey, the holder of a conditional license shall provide the

System Manager with the following information, updated as of the date of the application:

(a) Details of the folder of the conditional license;

(b) Copy of the conditional license;

(c) Configuration of the production facility he intends to establish, including, among others,

the models of the gas turbine units and the steam turbines and return boilers (if any

exist), the models of generators, equipment manufacturers for each of the production

units intended to provide fixed available capacity and expected operating parameters


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for each production unit (electrical efficiency, capacity change rate, start-up and shut-

down times and other operating constrains);

(d) The percentage of the connected load (up to 3 different options from which the

producer shall select one option for utilization that shall comply with standard 100) of

the total connected load of each production unit handled in the form of a fixed and

variable capacity, in accordance with the provisions specified in standards 101 – 106

below;

(e) All the details of the gas transaction offered to him by the gas supplier, including, among

others: gas quantities (total, annual, monthly, weekly, daily, hourly maximum and

minimum), minimum undertaking under the gas agreement (T.O.P undertaking, if

available), gas prices throughout the term of the agreement (including linkage

mechanism), additional terms such as make up gas and carry forward;

(f) Any additional details required by the System.

(2) The holder of the condition license shall submit a valid document from the gas supplier

addressed to the license holder and confirming the validity of the information submitted to

the System Manager. A copy of the information submitted to the System Manager shall be

delivered to the Authority.

(3) Any additional information required by the System Manager for the purpose of conducting

the survey.

(d) Confirmation of receiving the application

The Essential Service Provider shall deliver to the producer a confirmation for receiving the

request, as specified in close (b) above, as soon as possible and not later than 5 work days after


(e) Payment

(1) For conducting a binding gas consumption survey, the producer shall pay the System

Manager the sum of 100 thousand NIS, linked to the consumer price index.

(2) For the aforementioned payment, the System Manager shall credit the producer with 4

simulations to be conducted in accordance with the producer’s application. Each simulation

shall include a different required data set.

(f) Results of the survey

The results of the survey shall be one of the following:


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(1) A producer meeting the main conditions specified in standard 100 shall receive the gas

quantities that the System Manager undertakes to use as part of the variable available

capacity;

(2) A producer not meeting the main conditions specified in standard 100 shall receive a reply

specifying that he is not entitled to receive payment for variable available capacity.

(g) Contesting the results of a binding gas consumption survey

The holder of a conditional license shall be entitled to contest the results of the binding gas

consumption survey by appealing to the professional team at the Authority. The professional

team at the Authority shall announce its decision regarding the appeal within 45 work days from

the date of receiving all the information required by it.

(h) Validity of the binding gas consumption

(1) the results of the binding gas consumption survey for fixed available capacity regarding

holders of conditional licenses, according to which the System Manager commits to gas

quantities under the fixed available capacity, and according to which the license holder

enters into contract with the gas supplier, shall remain valid until the publication of the

following general gas survey.

(2) To dispel any doubt, the commitment of the System Manager to the gas transaction, as well

as the commitment of the producer to produce energy under as part of a fixed available

capacity, shall be in accordance with the gas transaction presented by the producer to the

System Manager for the purpose of the binding gas survey. If the gas transaction signed by

the producer is different, the System Manager shall not bear this responsibility.

(i) Confidentiality

As a condition for the Authority’s recognition of the costs of managing the system and as part of

providing system management services, the Essential Service Provider and the System Manager

shall act as follows:

(1) The System Manager shall not disclose to any person, including employees, consultants,

contractors of the Essential Service Provider and third parties, except the relevant personnel

in the system management unit whose roles shall be specified in supplement 1 of this

standard (hereinafter: “the authorized representatives”), the details of the gas acquisition

agreement, as well as any information derived from it regarding the operation of the

producer’s power station revealed to the System Manager as part of the preliminary gas

consumption survey or the binding gas consumption survey during the commercial

operation of the production facility under the production license (hereinafter: “the

information”);


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(2) The System Manager shall not use the information, by himself or through others, except for

the use permitted by the standards and by law;

(3) The System Manager shall sign a confidentiality agreement with the producer related to the

details of the agreement specified in supplement 1, as well as any confidential commercial

information provided to him by the producer;

(4) The confidentially agreement shall remain valid for a period of 5 years after the expiration of

the producer’s license;

(5) The System Manager shall not copy, duplicate, photocopy, print or replicate by any other

means the information;

(6) Without derogating from the above, the System Manager shall take the following measures:

(a) Information in hard copy format shall be numbered and cataloged in an inventory list.

The information and the inventory list shall be kept in a safe to which only the

authorized representatives shall have access;

(b) Any removal of hard copy information from the safe shall be regularly recorded. This

record shall include the date and time of the removal of information, the name and role

of the user of the information, the reason for the use and the date and time of returning

the information to the safe;

(c) Information in digital media format shall be kept in designated password protected

computers to which only the authorized representatives shall have access;

(7) When the production license of the producer expires, the System Manager shall return all

the information and its copies submitted to him to the producer;

(8) The Essential Service Provider shall ensure that the authorized representative are not

consulting or taking part in any of the Essential Service Provider’s operations relating to the

acquisition of natural gas and the establishment of its policies regarding natural gas;

(9) Once per year, the Essential Service Provider shall report its efforts to comply with this

standard to the Authority.


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Supplement 1 – list of authorized representatives

The officials acting as authorized representatives in accordance with standard 99 herby undertake to

meet all their commitments and obligations specified in the standard.

Role

__________

__________

__________

__________


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100. Minimum conditions for the commitment of System Manager to use gas under fixed

available capacity by the results of the binding gas survey

(a) Conditions for the commitment of the System Manager to purchase available capacity

(1) As a condition for the recognition of the costs incurred by the System Manager for utilizing

energy under a fixed available capacity, preference shall be given to gas transactions of the

most operational flexibility and quantitative flexibility, in accordance with the terms

established in decision 2 of meeting 241, and I accordance with the needs of the System

Manager.

(2) The System Manager shall not undertake to purchase fixed available capacity for a

conventional facility if the results of the gas survey show that the average number of

operating hours in the first 5 years of operating the facility in a combined cycle is less than

4500 per year, and in the case of a conventional facility operating in an open cycle, less than

2000 per year.


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101. Rules for dividing the facility into fixed and variable availability

(a) Schedule for dividing facilities into fixed and variable capacity

The System Manager shall be notified by the producer, prior to the financial closure and the

signing of the natural gas agreement, about the percentage of the connected load out of the

total connected load of all production unit operated in the format of a fixed and variable

capacity, and shall specify the mode of the variable capacity, all in accordance with the

provisions specified in standard 99 (commitment to acquire gas quantities under fixed available

capacity).

(b) Rules for dividing the facility into fixed and variable availability

The producer’s request to divide the facility into fixed and available capacity shall be made in

accordance with the following rules:

(1) For each production unit, the part defined as variable available capacity shall be either

between 0% and 30% of the production unit’s net capacity or the full (100%) available

capacity of the production unit;

(2) In any case, the producer shall not define the total variable available capacity of the facility

as less than 10% of the available capacity of the production facility (the total available

capacity of the production units) (hereinafter: “minimum variable available capacity”);

(3) In case of a single shaft combined cycle type production unit, or a multiple shaft combined

cycle type production unit that includes multiple gas turbines connected to a steam turbine,

an identical percentage shall be defined for the steam turbine intended for its operation

under variable available capacity in accordance with the part of the unit’s gas turbines

connected to it and defined as variable available capacity;

(4) The facility’s remaining available capacity beyond the part defined as variable available

capacity regarding each production unit shall be operated as fixed available capacity.


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102. Acquisition of variable available capacity and energy out of variable available capacity

(a) Providing variable available capacity to the System Manager

The acquisition of variable available capacity and energy out of variable available capacity by the

System Manager shall be made in accordance with the standards of chapter F, as updated form

time to time.

(b) Rate for providing variable available capacity

The rate according to which the System Manager shall pay the producer for providing variable

available capacity shall be in accordance with Table of Rates 6.5-1 and the type of the facility.

(c) Rate for acquisition of energy out of variable available capacity

The rate according to which the System Manager shall pay the producer for acquisition of

energy out of the variable available capacity shall be in accordance with the producer’s

quotation and the type of the facility, but, in any case, shall not exceed the normative energy

price specified in Table of Rates 6.5-2.

(d) Full gas utilization under variable available capacity

If, in a specific year, the producer utilizes all his available gas under the gas agreement before

the end of the year:

(1) For units with a variable available capacity under 30% of the production unit’s net capacity,

the System Manager shall pay the producer for the variable available capacity in accordance

with this standard;

(2) For units with a variable available capacity of 100% of the production units’ net capacity, the

System Manager shall not pay the producer for the variable available capacity provided to

him by these units.


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103. Acquisition of fixed available capacity

(a) Acquisition of gas for fixed available capacity

The System Manager shall determine and inform the producer, prior to the financial closure and

signing the gas agreement, about the quantity of gas to be purchased for the purpose of utilizing

the facility’s fixed available capacity into energy, and all as part of the binding survey specified in

standard 99.

(b) Operating the fixed available capacity

The fixed available capacity for each unit shall be operated by the System Manager in

accordance with his instructions as submitted to the producer under the specific loading plan or

in real time.

(c) Rate for acquisition of fixed available capacity

The rate according to which the System Manager shall pay the producer for acquisition of fixed

available capacity shall be in accordance with Table of Rates 6.5-1 and the type of the facility.

(d) Rate for acquisition of energy out of fixed available capacity

The rate according to which the System Manager shall pay the producer for acquisition of

energy out of the fixed available capacity shall be in accordance with Table of Rates 6.5-2 and

the type of the facility.

(e) Full gas utilization under fixed available capacity

If the System Manager utilizes all his available gas under the gas agreement before the end of

the year, the producer shall be entitled to receive full payment for the fixed available capacity

until the end of the year.

(f) Installation of a Load Frequency Control (LFC) system

The producer shall install an LFC system and operate it in accordance with the instructions of the

Essential Service Provider.


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104. Calculating gas consumption under fixed and variable available capacity

(a) Calculating gas consumption

(1) Once per month, an examination of the gas consumption of the producer and the System

Manager from the production facility shall be conducted for each of the production units. A

calculation shall be made of the actual quantity of gas consumed under the fixed and

variable available capacity and utilized for energy.

(2) For the purpose of establishing the rate, the calculation shall be based on the number of

kWh produced under fixed and variable available capacity and utilized for energy multiplied

by the normative heat rate in which each production unit is operated in every half-hour.

(3) For this purpose, energy measurements shall be made at the terminals of each production

unit.


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105. Division of responsibility in the fulfillment of the gas agreement

(a) The responsibility of the System Manager in the fulfillment of the gas agreement

(1) For production units with a variable available capacity of 100% of the production unit’s net

capacity, the producer shall be responsible to determine the gas quantities before the

financial closure, and these quantities shall be part of the producer’s gas agreement and the

TOP undertaking in the agreement.

(2) For production units with a variable available capacity of under 30% of the production unit’s

net capacity, the System Manager shall determine the gas quantities required by him, and

the producer’s part in the gas agreement under fixed available capacity for these units shall

be the same as the relative part of the variable available capacity out of the unit’s net

capacity.

(3) If the producer announces the reduction of the part managed as variable available capacity,

as specified in standard 106, for the units in which the variable available capacity is under

30% of the net capacity, the Essential Service Provider shall be committed only to gas

quantities and part of the gas agreement in the amount of the variable available capacity

added to the fixed available capacity.

(4) If the producer announces the reduction of the part managed as variable available capacity,

as specified in standard 106, for the units in which the variable available capacity is 100% of

the net capacity, the System Manager shall be committed only to gas quantities and part of

the gas agreement in accordance with the quantities relevant to part of the aforementioned

facility, as specified in sub-close (3). The System Manager may increase his commitment to

gas for these units beyond the aforementioned above, in accordance with his needs and the

term of the gas deal.

(5) If the producer announces the increase of the part managed as variable available capacity,

as specified in standard 106, he shall be entitled to exceed the gas quantity or the part in

the gas agreement in accordance with the relative part of the aforementioned variable

available capacity out of the net capacity of the relevant unit.

(6) The producer may not change his part in the gas agreement unless he changes the amount

of variable available capacity in the units in which the variable available capacity is under

30% of the available capacity.

(7) The producer and the System Manager shall be entitled to utilize the rights given to them

under the natural gas agreements (make up gas, carry forward and other rights) in

accordance with their relative part in the available capacity and in accordance with the

provisions of this close.


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106. Converting variable available capacity into fixed available capacity and vice versa

(a) Schedule for submitting a conversion request

The System Manager shall allow the producer, with a prior notice of 12 months, to increase or

decrease the part of the production unit’s net capacity that is used as variable available

capacity. The part used as fixed available capacity shall be modified accordingly.

(b) Recognizing the costs to the System Manager

The recognition of costs incurred by the System Manager for the reduction of the variable

available capacity part and the increase of the fixed available capacity accordingly shall only be

made in accordance with the following table:

Up to 12 months from the date of obtaining the permanent license






Maximum recognition of additional fixed available capacity converted from variable available capacity (over the minimum variable available capacity). The % is of the preliminary variable available capacity selected by the producer minus 10%

83.33% 66.66% 50% 33.33% 16.66% 0%

(c) Maximum conversion into fixed available capacity

The maximum variable available capacity that the Essential Service Provider shall allow a

producer to convert into fixed available capacity shall be calculated in a percentage above the


314

minimum variable available capacity (set to 10%) with which the producer has started operation

at the time of obtaining the permanent license.


315

Section F: Co-generation Producers Connected to the Transmission Network

In this section:

“Producer” – a co-generation producer connected to the transmission network.

107. General

(a) Obligation of the Essential Service Provider

The System Manager shall purchase energy from a co-generation producer in accordance with

his license, his Rate Authorization, the specific loading plan and in accordance with the law.

(b) Application to receive energy acquisition services

(1) producer interested in selling energy to the System Manager shall apply to the System

Manager in writing, with a copy of the conditional and the Rate Authorization issued to him

by the Authority, and specify the following information:

(a) Name and address of the producer;

(b) Location of the production facility;

(c) Type of facility and technology;

(d) Operating parameters of the production units in the facility, including, among others:

load change rate of the production units, start-up and shut-down times of the

production units, synchronization time of the units with the network and the minimum

operation times of all production units;

(e) Copy of the Rate Authorization issued to the producer;

(f) Estimated date for commercial operation of the production units in the facility;

(g) Names and contact details of the producers contact persons.

(2) A producer who has not completed his acceptance examinations may submit his request

without the parameters requested in sub-close (d) above. These details shall be updated

following the acceptance examinations.

(c) Selling surplus capacity of a co-generation facility

If the energy produced in a co-generation facility exceeds the amount the producer is permitted

to sell to the network by law (hereinafter: “surplus capacity”), the producer may offer the

System Manager a transaction under the terms between a willing buyer and a willing seller,

provided that the maximum price of energy sold by the producer to the System Manager in this

transaction shall not exceed the maximum price in the energy costs component in the


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producer’s Rate Authorization, as specified in decision 2 of meeting 241, supplement A, close 10,

tables 15 and 16, with Au=1.6.


317

108. Calculation of payment for energy acquisition

(a) Authorized rate

Payment to the producer by the System Manager for electricity provided by the producer to the

network shall be calculated in accordance with the rate specified in the producer’s Rate

Authorization issued by the Authority.

(b) Determining the amount of energy sold to the network for the purpose of calculating the rate

(1) At the beginning of every year, the payment to the producer shall be calculated based on

the actual mount sold to the System Manager in the previous year (not counting energy sold

in accordance with standards 107 (c) above and 110 below) in accordance with the energy

rate specified in the Rate Authorization, in comparison with the calculation of actual

payment made to the producer in accordance with the producer’s estimate submitted in

advance, as specified in this sub-close. The producer shall be charged or credited according

to the difference between the calculations based on the electric energy purchased from him

by this rate plus interest as follows:

(a) The producer shall reimburse the System Manager for excess payments plus prime

interest rate minus 0.8%;

(b) The System Manager shall pay the producer payment differences plus prime interest

rate minus 0.8%.

(c) Compensation for deviation from the permitted quantity

(1) The System Manager shall notify the producer when the quantity of energy sold by him to

the System Manager reaches 80% of the annual quantity he is permitted to sell to the

System Manager in accordance with the terms of his license, not later than 14 work days

from the date of reaching the aforementioned quantity.

(2) At the beginning of every year, the total energy produced by the facility in different demand

hour clusters in the previous year shall be calculated. If the quantity of energy sold to the

System Manager in different demand hour clusters under the System Manager’s obligation

to purchase energy, as specified in standard 107 (a), is greater than the quantity permitted

by the license, the producer shall not be entitled to receive payment for the

aforementioned surplus energy. Any payment for this electricity surplus shall be deducted

from the payments due to the producer at the end of the year.


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109. Calculating the quantity of electricity sold to the System Manager

(a) Calculating the quantity of electricity sold to the System Manager

(1) The quantity of electricity produced by the producer shall be determined in accordance with

the reading of the meters at the generator terminals minus the self consumption of the

production facility.

(2) The quantity of electricity transferred by the producer to the network shall be measured by

a meter installed at the point of connection of the producer’s facility to the network.

(3) The quantity of electricity sold by the producer to the System Manager shall be the quantity

of electricity transferred by the producer to the network minus the quantity of electricity

sold to suppliers as part of the daily plan.


319

110. Rates for co-generation producers in case of failure of the facility to meet the terms of

its definition

(a) Rated for facilities that no longer operate as co-generation facilities

(1) A co-generation producer who no longer meets the terms required for his definition as a co-

generation technology producer shall be entitle, for the period in which he ceases to be a

co-generation producer, to a receive a Rate Authorization of a conventional producer with a

variable availability of 100% of the facility’s available capacity, in accordance with the terms

and rates applicable to conventional producers with a variable capacity of 100% of the

facility’s available capacity, as specified in the Rate Authorization issued to him prior to the

financial closure, and the provisions specified in standard 106 shall not apply to him. The

producer shall be entitled to the aforementioned rate from the date of failing to meet the

required terms for his definition as co-generation producer and until he meets theses terms

again.

(2) In case of a co-generation producer that fails to meet the requirement of co-generation

because of force majeure preventing him from using natural gas, the producer shall be

allowed to use alternative fuel (in case of a duel fuel producer).


320

111. Monitoring quantities of energy purchased - reporting to the Authority

(a) Reporting to the Authority

The System Manager shall submit to the Authority annual reports regarding the quantities of

energy produced by each co-generation producer, specifying the energy quantities sold to

private consumers, the energy quantities sold to the System Manager and the energy quantities

consumed at the facility’s premises.


321

Section G: Producers Connected to the Distribution Network

In this section:

“Producer” – a producer of any technology connected to the distribution network.

112. Application of standards

(a) Application

In addition to the standards specified in this section, and depending on the technology used by

the aforementioned producer, other relevant standards shall apply to him.

Standards 1, 50 – 57 (for producers over 5 MW), 58, 59, 60 – 68, 70, 75, 81 – 86 shall apply to

producers connected to the distribution network, with the required changes (such as the use of

the terms ESP or System Manager, as the case may be).


322

113. Submitting maintenance and production plans

(a) Submitting maintenance and production plans

In order to receive rates from the provider, the following reporting rules shall apply:

(1) The producer shall submit to the System Manager an annual maintenance plan, as specified

in standard 86 (regulations for submitting a maintenance plan);

(2) Every day, before 10:00, the producer (except for a renewable energy producer) shall

submit to the System Manager a daily production plan, in accordance with the sample form

attached to this standard;

(3) The daily consumption plan may be changed with a written notification by the producer to

the System Manager, provided that the notification is delivered not later than 6 hours prior

to the time it refers to.


323

To: the System Manager

Daily plan for production and available capacity in the facility for the date ………………..

(For producers connected to the distribution network)


Production facility ....................

Daily plan for production and available capacity in the facility

Production (MWh)

Available capacity (MW)

From hour

Until hour

Demand hour cluster

Production (MWh)

Available capacity (MW)

From hour

Until hour

Demand hour cluster

12:00 12:30 12:00 12:30

12:30 13:00 12:30 13:00

13:00 13:30 13:00 13:30

13:30 14:00 13:30 14:00

14:00 14:30 14:00 14:30

14:30 15:00 14:30 15:00

15:00 15:30 15:00 15:30

15:30 16:00 15:30 16:00

16:00 16:30 16:00 16:30

16:30 17:00 16:30 17:00

17:00 17:30 17:00 17:30

17:30 18:00 17:30 18:00

18:00 18:30 18:00 18:30

18:30 19:00 18:30 19:00

… … … …

__________ __________



324

114. Energy production allocation plan as part of the provision of network services

(a) Requirements of the energy production allocation plan

As part of the provision of network services and their rates, before 10:00 on the starting date of

the provision of services, producers holding a supply license who are connected to distribution

network and receive network services shall submit to the Essential Service Provider an energy

production allocation plan. The energy production allocation plan may be created in accordance

with the sample form attached to this standard.

(b) The producer’s right to limit the quantity of energy transferred to the consumer

The provider shall allow producers holding a supply license to determine at his own discretion

the quantities of energy transferred to each consumer under the energy production allocation

plan, provided it does not contradict the provisions of the private transaction.

(c) Changes to the energy production allocation plan

During the period of receiving network services, the provider shall allow producers to update

the energy production allocation plan on the 1st of each month.


325

Energy production allocation plan for producers of less than 5 MW holding a supply license and

connected to the distribution network



Order of energy allocation to producer by meter numbers Time

4 3 2 1

Allocation (up to)

Meter number

Allocation (up to)

Meter number

Allocation (up to)

Meter number

Allocation (up to)

Meter number

1 MW* 130 1 MW 112 2 MW 105 All consumption

100 0:30 – 1:00

All surplus energy**

130 1 MW 100 2 MW 105 All consumption

112 1:00 – 1:30

Energy allocation plan

__________ __________


* In this case, any surplus energy shall be sold to the network in accordance with the relevant

production component rate of the producer, as specified in his Rate Authorization.

** In this case, any surplus energy beyond the consumer’s consumption shall be sold to the network in

accordance with the relevant production component rate of the producer, as specified in his Rate

Authorization.


326

115. Producers of less than 1 MW

(a) Exemption from submitting a maintenance plan and a daily production plan

Producers whose production facility’s capacity is 1 MW or lower shall be exempt from the

requirement to submit a maintenance plan, as specified in standard 86, and from the

requirement to submit a daily production plan, as specified in standard 91, for the purpose of

receiving payment.

(b) Mandatory annual report of operating hours

Once per year, on December 30, and beginning with his first year of operation, the

aforementioned producer shall submit a summary annual report of his operating hours during

the year.


327

116. Producers of between 1 MW and 5 MW

(a) Exemption from submitting a daily production plan

Producers whose production facility’s capacity is greater than 1 MW but not greater than 5 MW

shall be exempt from the requirement to submit a daily production plan, as specified in standard

91, for the purpose of receiving payment.

(b) Mandatory maintenance plan

The aforementioned producer shall submit a maintenance plan, as specified in standard 86.


328

117. Payment for acquisition of energy

(a) Payment for acquisition of energy

The System Manager shall pay license holding producers the following rates for the acquisition

of energy:

(1) For acquisition of energy from a conventional producer connected to the distribution

network, the System Manager shall pay the rate specified in the Rate Authorization. This

component shall be in accordance with the rate specified in Table of Rates 6.5-2 (maximum

total energy rate for conventional producers in Agorot per kWh);

(2) For acquisition of energy from a co-generation producer connected to the distribution

network and operating with natural gas, the System Manager shall pay the rate specified in

Table of Rates 6.6-1 (production component for co-generation producers operating with

natural gas in Agorot per kWh);

(3) For producers of renewable energy – in accordance with the producer’s rates specified in his

Rate Authorization;

(4) To clarify, at this stage the aforementioned producers may not participate in the process

specified in standards 91 – 95.


329

118. Meter reading for a consumer under a transaction with a producer holding a supply

license and connected to the distribution network

(a) The Essential Service Provider’ obligation to conduct a meter reading

The Essential Service Provider shall read the consumer’s meter, as specified in the relevant

standards in chapter B of the Book of Standards.


330

119. Settlement with the provider in case of a transaction with a producer holding a supply

license and connected to the distribution network

(a) Settlement by method of full collection

(1) In case of producers holding a supply license and connected to the distribution network who

are under a private transaction, the Essential Service Provider shall allow the producer to

settle his accounts with him by method of full collection.

(2) The holder of the supply license shall collect from consumers the full amount due from

them for electricity consumption and transfer payment to the Essential Service Provider for

electricity supplied by the Essential Service Provider to the consumer.

(3) In this case, the Essential Service Provider shall not deliver a bill to each consumer but only

to the holder of the supply license.


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120. Payment for surplus

(a) Producers using full collection method

The provider’s settlement with producers using the full collection method under private

transaction shall be as follows:

(1) If the quantity of energy transferred to the network is greater than the consumption of

private consumers, the Essential Service Provider shall pay the producer for the quantity of

surplus energy in accordance with rate of the relevant production component plus any

special producer’s premium, if any exists;

(2) If the consumption of private consumers is greater than quantity of energy transferred to

the network, the Essential Service Provider shall charge the producer for the

aforementioned quantity of energy consumed, in accordance with the Time and Load Rate

for producers of the same voltage level.


332

Section H: Producers of Renewable Energy

In this section:

“Producer” – a producer of renewable energy.

121. Submitting plans

(a) Obligation to submit plans and documents by producers connected to the transmission

network

During the period of receiving network services, and for the purpose of determining the rate,

producers connected to the transmission network shall submit plans to the System Manager in

accordance with the following standards:

(1) Regulations for submitting a maintenance plan – standard 86;

(2) Deviation from the mandatory maintenance plan – standard 87;

(3) Payments for deviation from the maintenance plan – standard 88 (a);

(4) Administrative deviations – standard 97.

(b) Obligation to submit plans and documents by producers connected to the distribution

network

(1) One month before receiving network services or the acquisition transaction with the

provider, and every year, on January 1, before 13:00, producers of more than 1 MW

connected to the distribution network shall submit an annual maintenance plan to the

System Manager, in accordance with standard 86.

(2) Producers of renewable energy shall submit a weekly production plan to the System

Manager, in accordance with the sample form attached to this standard.


333

To: the System Manager

Weekly production plan in the facility for month ……………….. year ………………..

(For producers of renewable energy)



Available

capacity

(MWh)

Production

(MWh)

Demand hour

cluster

Week

Peak 1

High

Low

Peak 2

High

Low

Peak 3

High

Low

Peak 4

High

Low

Peak 5

High

Low

__________ __________



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122. Payment for acquisition of energy

(a) Rate for producers for acquisition of energy

(1) For acquisition of energy the System Manager shall pay the producer in accordance with the

Table of Rates for renewable energies established by the Authority, as specified in the

producer’s Rate Authorization.

(2) The content of the bill, on all its components shall be the same as the content of the bills of

other producers, as specified in standard 82.


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Section I: Self-Producers

123. Regulations for the operation of self-producers

In this Standard:

“Producer” – a self-producer.

(a) Operation of self-producers – general

(1) A self-producer connected to the transmission network shall work with the System Manager

in accordance with the reporting rules and regulations specified in this standard.

(2) A self-producer operating conventional type facility may change the production facility’s

capacity in the format of load following in accordance with the changes in the consumption

of the consumer in the producer’s premises, as specified in this standard.

(b) Submitting a maintenance plan

The producer shall submit a maintenance in accordance with the reporting rules and regulations

specified in standard 86, and any payments due to deviations from the aforementioned plan

shall apply to him, as specified in standard 88 (a).

(c) Selling energy to the System Manager

(1) A self-producer may conduct transactions for the sale of energy to the System Manager in

accordance with an agreement between a willing seller and a willing buyer and the terms

agreed upon by them.

(2) The energy price to which the producer shall be entitled to for sale to the System Manager

shall not exceed the maximum price of the energy cost component specified in decision 2 of

meeting 241, Table of Rates 6.5-2, for the sale of energy out of a variable available capacity

by type of facility, with Au=1.6.

(d) Purchasing energy from the System Manager

Consumers in a premises with a production facility (a facility consumer) shall purchase electricity

from the System Manager in accordance with TLR rates until the establishment of backup

arrangement that will apply to the operation of the production facility.


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Section J: Special Cases

124. Irregular states

In this standard:

“Irregular state” – an event that falls under any of the cases specified in this standard and requiring

a deviation from normal economic loading considerations in order to ensure the supply of

electricity, protect the survivability and reliability of the system and prevent and damages to person

or property.

(a) Establishing the existence of irregular states

If the System Manager sees that any of the irregular states specified below exists, he may

instruct the producer in real time or through plans submitted in advance, to deviate from the

specific loading plan:

(1) Mortal danger or threat to property;

(2) Malfunctions or expected malfunctions in the production system or the electricity network

(from the start of the malfunction until normal conditions are returned);

(3) Dangerous conditions – conditions in which, due to internal or external causes, there is a

risk of N-1 and N-2 level malfunctions (one or two components in the production and

transmission systems), that may result in supply interruption or regional and systematic

interferences or any of the conditions specified in closes 4 -7 below;

(4) Regional or general overload in the transmission system;

(5) Low or high voltages in the transmission system;

(6) Risk of short circuit currents above the permitted level;

(7) Shortage in one of the reserve types;

(8) Constrains due to the fuel supply system;

(9) Security risks.

(b) Documenting irregular states

The System Manager shall keep record, by computer, manual shift log, supervision documents

and supervision conversation recordings, of irregular states for which instructions is given to

producers to deviate from the daily plan, as follows:

(1) An irregular state, as specified in sub-closes (a) (1), (8) and (9) above, shall be registered in

the shift log in accordance with reports from the field or in the supervision documents;


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(2) An irregular state, as specified in sub-closes (a) (2) and (7) shall be recorded in the EMS

system.

(c) Deviation from the loading plan in an irregular state due to instructions of the System

Manager

A deviation from the specific loading plan in an irregular state due to instructions of the System

Manager shall not incur payment for the producer, unless otherwise specified in these

standards, and shall not be considered a deviation from the production plan for the purpose of a

private transaction with a supplier.

(d) Deviation from the specific loading plan or changes without authorization from the System

Manager

In an irregular state, deviations from the specific loading plan or any changes to it, for the

purpose of increasing or decreasing the capacity in accordance with the instructions of the

System Manager for which the producer shall charged by the System Manager, shall be 50%

greater than the charges of the producer in cases that are not irregular cases.


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125. Use of alternative fuels

(a) Use of alternative fuels

(1) Alternative fuels shall be used in production units by permits issue in accordance with the

law. The provisions of this standard shall apply in cases where a unit is operated by an

alternative fuel, both in real time and according to the specific loading plan known in

advance, in the following cases.

(2) Alternative fuel shall be used in the following cases and in the following ways:

(a) In case of damage to the gas transmission system, production units operated by natural

gas shall switch to an alternative fuel in accordance with the needs of the system, and

shall be loaded in such a way as to minimize costs, and the relevant standard shall be

read with the required changes (for example, the liability standard);

(b) During a shortage in one of the reserve types;

(c) In case of constrains due to the fuel supply system, and the relevant standard shall be

read with the required changes (for example, the liability standard and the force

majeure standard);

(d) If the duration of the constrain of the gas transmission system requires production units

that were switched to diesel fuel to operate consecutively or accumulatively for more

than 100 hours, the producer shall be required to ensure the supply of diesel fuel to the

production facility in order to continue the operation of the units for as long as needed;

(e) If the producer is unable to operate the facility using natural gas, under the conditions

specified in the standards, he shall be required by law to operate the facility

continuously using an alternative fuel, in accordance with the needs of the system.

To clarify, if the holder of a license is not authorized by a competent authority to

operate the facility by an alternative fuel, but the facility has been lawfully operated

until then by natural gas, and the use of alternative fuel is required in case where the

producer is unable to operate the facility due to a shortage of natural gas that meets the

conditions specified in close (a) of standard 130 for the definition of a force majeure,

and subject to the fact that the producer has acted diligently and swiftly and has taken

all necessary measures to obtain the authorizations required for the operation of the

facility by the aforementioned alternative fuel, then the Authority shall examine

whether the interruption of operation may be considered a force majeure event.

To emphasize, if the producer is not permitted to operate the facility by an alternative

fuel for a minimum of 100 consecutive hours in accordance with the relevant applicable

statutory plan at the time of the financial close, and the conditions specified in sub-close

(a) above are met, then the provisions of standard 130 (force majeure) and this


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standard (use of alternative fuels) shall not apply to the producer, and he shall not be

entitled to the compensations specified in this standard for the shortage of natural gas;

(f) The provisions of sub-close (e) above shall not apply to facilities for which, at the time of

entry into force of this standard, an approved operating plan for co-generation facilities

with natural gas only exist, and whose connected load does not exceed 100 MW.

Producers with such aforementioned facilities shall not be required to operate the

facility with an alternative fuel and shall be entitled to receive payment for fixed

available capacity for the total available capacity of the facility;

(g) If the producer is required to operate the facility by an alternative fuel and there is a

shortage in the alternative fuel that meets the conditions specified in close (a) of

standard 130 for the definition of a force majeure, this shall be considered a force

majeure event, as defined in the standard, for as long as the shortage continues.

(b) Payment for use of alternative fuels

(1) For the use of diesel fuel as an alternative fuel for the utilization of variable available

capacity for energy for the use of the System Manager, a conventional producer shall be

entitled to the rate specified in Table of Rates 6.5-2, with BFUCsoler100% calculated in

accordance with close 10 of supplement A to decision 2 of meeting 241, with the necessary

changes (CGFT=0, Au2/1=1, BLO=0, and VC calculated by tables 17 and 18 of supplement B

to decision 2 of meeting 241).

(2) The producer shall also be required to meet the requirements of equivalent availability in

case of use of alternative fuels.

(3) These terms shall also apply to co-generation producers who fail to meet the conditions of

co-generation and are required to operate in accordance with the conditions of a

conventional producer.

(c) Payment for non-use of alternative fuels

Producers who are lawfully able to operate their facility by diesel fuel as an alternative fuel and

does not do so in the cases specified in this standard and in accordance with the instructions of

the System Manager, shall not be entitled to receive payment for available capacity, and shall be

required to pay the System Manager for the marginal cost Ex Post for the system minus his

normative rate for diesel operation, as specified in his Rate Authorization. If the marginal cost of

for the system minus his normative diesel fuel rate, as specified in his Rate Authorization, is

lower than 0 than the producer shall not be entitled to any payment.


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(a) Resolve by the Authority

Notwithstanding the above, in case of any dispute regarding the standards and rates, the parties

shall apply to the Authority to resolve it.


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Section K: Pumped Energy Producers

In this section:

“Pumped storage production unit” (hereinafter: “production unit”) – a technical system for the

production of electrical energy by using the height difference between to water reservoirs and the water

current between them. The production unit shall include a single generator;

“Fixed available capacity with full dynamic and planning benefits” – the full available capacity of the

pumped storage production unit that is available only to the System Manager as fixed available capacity

under an acquisition transaction for the term of the license, meeting the operating parameters specified

in state diagram 6.8-1 (a) and table 6.8-1 (b) in Authority meeting 279 of 8/11/2009;

“Variable available capacity of a pumped storage unit” (hereinafter: “base available capacity”) - the

full available capacity of the pumped storage production unit that is used for the production of energy,

and divided between variable available capacity provided by the producer to the System Manager and

variable available capacity utilized for energy for consumers;

“Pumped storage producer” (hereinafter: “producer”) – a conventional independent power producer

using pumped storage technology or a holder of a conditional license to produce conventional

independent power using pumped storage;

“Pumped storage facility” (hereinafter: “facility”) – a facility use for the production of electrical energy

by pumped storage, including pumped storage production units, buildings, machines, instruments,

batteries, conductors and permanent or mobile electrical equipment and accessories related to the

facility;

“Accompanying service” – any service required for the management of the electricity system and for

maintaining the reliability and quality of the electricity supply, that is not production of electricity or a

transmission service, and is required to ensure standards of survivability, reliability, safety and quality of

the electricity supply, including voltage stabilization, frequency stabilization and different reserves;

“Acquisition rate including benefits” – a rate for available capacity with full dynamic and planning

benefits.

127. Sale and acquisition of energy and accompanying services

(a) Acquisition of available capacity and energy from pumped storage units

The System Manager shall purchase available capacity and energy from a pumped storage

producer in accordance with the producer’s request and his license, under the following

conditions:

(1) When obtaining the conditional license, the producer shall inform the Authority if he wishes

to operate by providing fixed available capacity with all dynamic and planning benefits from


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the pumped storage unit to the System Manager only for the term of the license, or to

operate by variable available capacity of the pumped storage unit;

(2) If the producer chooses to provide fixed available capacity with all dynamic and planning

benefits from the pumped storage unit to the System Manager only, the full available

capacity of the unit shall be allocated exclusively to the System Manager at all recognized

hours of availability for the duration of the acquisition transaction;

(3) If the producer chooses to provide fixed available capacity with all dynamic and planning

benefits from unit to the System Manager only, he may switch to the unit variable available

capacity track by notifying the System Manager and Authority 6 years in advance, or by

shorter prior notification in accordance with the conditions of the system, if authorized in

advance by the System Manager;

(4) A pumped storage producer that chooses the variable available capacity track may switch to

the fixed available capacity with all dynamic and planning benefits for the System Manager

only track, for a period determined in the authorization, with a prior notification of one

year, provided that he meets the operating parameters specified in diagram 6.8-1 (a) and

table 6.8-1 (b) or table 6.8-2 in the Authority decision of meeting 279 of 8/11/2009, and only

in accordance with the needs of the system and the prior authorization of the System

Manager and the Authority;

(5) The System Manager shall pay the producer for fixed available capacity with full dynamic

and planning benefits in accordance with Table of Rates 6.8-1 and Table of Rates 6.8-2 for

each available kW provided by the producer to the System Manager, depending on the

producer meeting the parameters specified in state diagram 6.8-1 (a) and table 6.8-2 (b);

(6) A producer of a fixed available capacity with full dynamic and planning benefits shall only

pump water from the lower reservoir to the upper reservoir in accordance with the

instructions of the System Manager, and the hours of pumping shall be included in the hours

of available capacity provided to the System Manager;

(7) Any reduction in the maximum available capacity, as established in the acceptance

examinations, in a pumped storage facility depending on the water level in the reservoirs

shall not exceed 7%, and no rate addition shall be provided for this reduction;

(8) The System Manager shall instruct the producer of fixed available capacity with full dynamic

and planning benefits provided to the System Manager only to pump in accordance with the

needs of the system and cost reduction;

(9) In case of a producer of fixed available capacity with full dynamic and planning benefits

provided to the System Manager only, lack of water in the upper reservoir, as a result of

continuous operation of the facility for the production of electricity in accordance with the


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directions of the System Manager until all the water in the upper reservoir is used, shall not

be considered as a state of unavailability;

(10) The System Manager may give any instruct to a producer of fixed available capacity with full

dynamic and planning benefits provided to the System Manager only regarding changes

between any of the states specified in state diagram 6.8-1 (a) in real time, and the producer

shall act in accordance with the instructions of the System Manager;

(11) Pumped storage producers shall be required to provide a minimum annual operating

availability of 94% for each production unit (at all hours of the year) on his first year of

operation, 95% on his second year of operation and 96% from his third year of operation.

(b) Sale of energy from a pumped storage unit to the System Manager

(1) The System Manager shall purchase electricity from the pumped storage producer, and the

pumped storage producer shall producer electricity, in accordance with the directions of the

System Manager and his needs only.

(2) The System Manager shall pay the producer for the energy produced in his facility in

accordance with the rate specified in Table of Rates 6.8-4.

(3) Acquisition of energy from variable available capacity shall be made in accordance with a

daily production plan for the pumped storage unit, but changes to the loaded variable

available capacity for the System Manager regarding the daily production plan shall be

possible, without being considered as changes to the daily plan, with prior notification to

the producer, in accordance with the schedules for switching between states of the pumped

storage unit specified in state diagram 6.8-1 (a) and table 6.8-2 of the Authority decision

given in meeting 279 of 9/11/2008.

(c) Purchasing accompanying services from a pumped storage unit

(1) The System Manager shall purchase accompanying services from a pumped storage

producer in accordance with the needs of the system.

(2) The System Manager shall pay the producer for the acquisition of accompanying services in

accordance with the rate specified in Table of Rates 6.8-6.

(d) Amendments to standards

The following standards in the Book of Standards, with the required amendments, shall apply to

pumped storage producers:

(1) Standards 68 -70;

(2) Standard 71 – close (c) shall end with the words “… or its de-synchronization”;

(3) Standard 75;


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(4) Standard 76 – close (a) (1) (a) shall be: “for each month of delay: the total available capacity

of the facility during this period multiplied by the rate for fixed available capacity specified

in Table of Rates 6.8-1 or 6.8-2, as the case may be”; close (a) (1) (c) shall be deleted;

(5) Standards 77 – 81;

(6) Standard 82 – in close (b) (8), the phrase “according to the half-hour energy quotations”

shall be replaced with the phrase “according to the energy rate specified in the producers

Rate Authorization”; close (b) (11) shall be deleted;

(7) Standard 83 – in close (b) “92%” shall be replaced with “96% from the third year of the

producer’s operation”; “88%” shall be replaced with “94% for the first year and 95% for the

second year”; in close (c) (1), the phrase “if the producer meets 88% in the first 12 months

after the start of operation” shall be replaced with the phrase “if the producer meets 94% in

the first 12 months after the start of operation and 95% in the following 12 months”; in

closes (c) (7) and (f) (3) the percentages shall be changed in accordance with the

amendment of close (b) specified in this standard;

(8) Standard 84;

(9) Standard 85 (a) (1) shall be cancelled and replaced by table 6.8-2; in sub-close 4 of the

definitions, the bracketed phrase shall be deleted;

(10) Standards 85 – 90;

(11) Standard 91 – in close (b), sub-closes (2), (4) – (9), (12) – (20) shall be deleted; sub-close (10)

shall end with the words “his capacity”; forms 1 and 2 shall be replaced with relevant forms

prepared by the System Manager;

(12) Standards 92 -94;

(13) Standard 95 – in close (a) (1) the phrase “in accordance with the offers of a conventional

producer” shall be deleted; in close (a) (1) (a), the phrase “the quotation for utilization of

variable available capacity…” shall be replaced with the phrase “the energy rate as specified

in table 6.8-4”; in close (a) (1) (c), the word “pay” shall be replaced with “not receive

payment for deficient energy”; in close (a) (1) (d), the words “the producer’s accepted

quotation” up to the words “fixed available capacity” shall be replace with “the energy rate

as specified in table 6.8-4”; close (a) (1) (e) shall be replaced with “If the difference between

is marginal cost and the energy rate specified in table 6.8-4 is negative, the producer shall

not be entitled to receive payment form the System Manager”;

(14) Standard 96 – in close (b) only sub-close (1) shall remain for pumped storage producers;

(15) Standards 97, 121, 122, 124;


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(16) The standards supporting funding in accordance with the Authority’s decision in meeting

268 of 19/7/2009 shall apply to acquisition of available capacity and energy from pumped

storage producers.

(e) Operation of pumped storage producers with the expiration of the Rate Authorization

(1) With the expiration of the producer’s Rate Authorization, the producer shall operate in

accordance with the arrangements applying to conventional electricity producers with

variable available capacity, or in accordance with valid rate arrangements regarding the

provision of dynamic and planning benefits services to the System Manager, as specified in

close (a) (1), by choice of the producer and according to the needs of the electricity market

at the time.

(2) In any case, a producer shall not be entitled to receive payments for fixed available capacity

that include the building cost component COamt. For the purpose of calculating the rate,

COamt = 0 shall be calculated for a producer with a Rate Authorization that includes all

benefits. For a producer of variable available capacity, the building cost component of the

rate shall also be 0.

(f) Payment to producers for energy produced for the System Manager

Payment for energy (in kWh) that is produced for the benefit of the System Manager by a

pumped storage producer in month m shall be based on:

(1) The marginal cost rate, as specified in standard 93, for each kWh purchased by the producer

from the System Manager for the purpose of pumping water from the lower reservoir to the

upper reservoir, in order to produce the amount of kWh for month m;

(2) Normative efficiency (76%);

(3) And the amount of kWh produced by the producer in month m.


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128. Emergencies

(a) Emergency provisions

The Essential Service Provider shall establish a list of emergencies, defined and approved by the

Authority, with a specification of the authority and/or the required provisions to provide

instructions for changes to arrangements and rates for each case (hereinafter: “emergency

provisions”).

(b) Emergency provisions format

The emergency provisions shall be in an identical format to different reports and plans specified

in these standards.

(c) Deviation from the production plan by a producer in accordance with the directions of the

System Manager

The emergency provisions shall state that any deviation from the production plan by a producer,

made in accordance with the directions of the System Manager during a defined emergency

state, shall not be considered as a deviation, and in any such cases the producer shall be

considered to be in compliance with the submitted production plan.

(d) Payments

The rates for these provisions shall be in accordance with tor 6.30-1 (rates for deviation from

the directions of the Essential Service Provider in an emergency).


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129. Payment insurance for independent power producers

Cancelled.


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130. Rate arrangement in case of a force majeure event and an insured event – definitions

In this standard:

“Rate Authorization” – a document implementing the decision of the Authority regarding license

holders, that includes, among others, rates of rate arrangements for: force majeure and insurance,

guarantee, alternative fuel and producer rates for acquisition of electricity, acquisition of availability

and energy or acquisition of accompanying services, as defined by the Authority. This authorization

shall be given by the chairman of the Authority at the date determined by the Authority and

updated in accordance with the updating mechanism contained in the authorization. The

Authorization shall not exempt the license holder from payment in accordance with any different

additional rates included in the Authorization, as established by the Authority from time to time in

accordance with its lawful duty, and among others, for system rates;

“Means of Control” – as defined in close 2 of the Electricity Sector Law, 1996;

“Alternative Fuel” – as defined in the permanent or conditional license issued by the Authority;

“Direct expenditures” – money spent by the producer due to an event entitling him to direct

expenditure in accordance with this standard, minus any amount saved by the consumer due to the

aforementioned event, including amounts saves in accordance with close (d) of standard 133,

provided that the total sum in all events during the term of the acquisition transaction is greater

than 1.2% of the normative cost of the facility or 300,000 USD, whichever is higher;

In calculating direct expenditures:

a. Financing costs incurred directly by the producer in accordance with the financing

agreements of the senior debt due the event for which direct expenditures are paid or

added to the senior debt shall be added. The financing costs shall be calculated in

accordance with the lowest of: (1) actual financing costs; (2) interest established in advance

by the financing agreements for the financers of the senior debt, and all subject to the

provisions of standard 132 (b) (1);

b. For direct expenditure including conducting works an overhead shall be included of any type

not exceeding 10% of the direct expenditures (this overhead shall include overheads and

contractor profit of any type);

c. The direct expenditure paid to the producer shall be established in accordance with

normative costs as established by the Authority or in accordance with the monies spent by

the producer due to the event entitling to direct expenditure, whichever is lower;

d. The following shall not be considered as direct expenditure:

1. Loss of income and/or loss of profit for the producer and/or sub-contractors and/or

third parties;


349

2. Any overhead above the overhead costs specified above;

3. Fines of compensations paid by the producer, including to sub-contractors and/or

third parties;

4. Value Added Tax paid by the producer to third parties, unless the VAT sum is not

deductable.

“Commercial operation” – the starting date of operation of the facility under the electricity

production license issued by the Authority;

“Gas transmission company” – a company holding a license for the transmission of natural gas in

the State of Israel, in accordance with the Natural Gas Sector Law, 2002;

“Gas distribution company” – a company holding a license for the distribution of natural gas in the

State of Israel, in accordance with the Natural Gas Sector Law, 2002;

“Senior debt” – a loan or allocation of financing means to the license holder through a Special

Purpose Entity holding the facility, provided by an entity that does not hold any means of control

over the license holder, or provided by a “banking corporation” as defined by the Banking Law

(Licensing), 1981, or an institutional entity as defined in the Control of Financial Services Law

(Insurance), 1981, including for the purpose of a provident fund or an insurance plan managed by

him, which by its terms precedes and prevails over any other financial obligation or loan of the

license holder, and whose securities are primarily the facility itself with all its related assets and the

cash flow derived from its operation;

“Independent producer”, “producer” or “license holder” – a holder of a license for independent

conventional production of electricity, a co-generation independent producer, an independent

power producer of renewable energy or a holder of a permanent or conditional license, for which an

acquisition transaction exists and who has a Rate Authorization, not including holders of a self-

production license;

“Senior debt balance” – all the sums provided as a loan balance at a specific date in accordance with

the senior debt financing. To dispel any doubt, the loan balance for this purpose shall include

accumulated interest in accordance with the financing agreements up to the date of a force majeure

event, but shall not include interest for delay, fines and similar charges incurred prior to the force

majeure event;

“Force majeure” –

a. War or an act of terrorism shall be considered force majeure as defined in this standard and

subject to the provisions of the law, if any exist, regarding the economy during a state of

emergency.


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b. Any event that meets all of the following conditions: (1) is not under the control of the

producer; (2) is not caused by any act or negligence of the producer; (3) the producer is

unable to prevent it by reasonable means; and (4) the producer could not have reasonably

foreseen it.

c. In addition to the aforementioned above, for the events specified in sub-closes a and b

above to be considered force majeure events, one of the following conditions must be met:

1. They substantially delay the construction of the facility;

2. The cause a significant physical damage to the facility;

3. They substantially interfere with the commercial operation of the facility.

d. Notwithstanding the above, and to dispel any doubt, the following events (but not

exclusively) shall not be considered a force majeure event:

1. Lack of workers or materials;

2. Shortage of natural gas, including for reasons specified in sub-close a above, and

including due to a force majeure event in accordance with the gas transmission

agreement or the gas distribution agreement, shall not be considered a force

majeure event, and the producer shall be required to operate the facility, under

these circumstances, in whole or in part, subject to the law, continuously with an

alternative fuel, as specified in standard 124 (use of alternative fuel);

3. Failure to prepare by the independent producer, including inadequate or faulty

preparation, as required by the provisions of the law and as specified in the

standards, regarding the production of electricity using an alternative fuel;

4. Strikes, labor disputes, shut downs, curfews, boycotts or similar events directed

against the license holder and/or a sub-contractor of the license holder, or caused

by the an action or negligence of the license holder and/or a sub-contractor of the

license holder;

5. Lighting or rough weather or any other significant climatic interference that the

producer could have insured himself against in the Israel Table of Rates

international insurance markets, or minimized their effect by installing adequate

electrical instruments;

6. Climate changes, including, and without derogating from the generality of the

above, changes in wind levels and/or in precipitation levels and/or in the strength,

frequency or direction of sun light;

7. Physical conditions or obstacles (above or underground);


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8. Delay, termination, interruption, interference, limiting conditions, denial, rejection

or non-renewal of any agreement, authorization, permit, license or any other

document (including the validation of a statutory plan related to the facility, building

permit, business license or fire department authorization) required for fulfillment of

the license holder’s obligations under the agreement and in accordance with the

provisions of the law and these standards;

9. Any event that the license holder is required to insure himself against in accordance

with the insurances list specified in standard 137 below;

10. Any event whose result is specified in the acquisition transaction, subject to the

standards and the law, that otherwise would be considered a force majeure event

as defined in this standard;

11. Any violation or failure to meet the provisions of any law, primary or secondary

legislation (including environmental laws and/or failure to meet the requirements of

planning and construction institutions during the term of the conditional license).

Without derogating from the generality of the above, a termination of operation of

the license holder by order of the Authority or any other competent authority

resulting in failure by the producer to submit or renew any form, request and/or any

other document required by law;

12. Failure to obtain adequate financing required for the regular operation of the

producer, including debt service;

13. Non-profitability of the acquisition transaction, including due to unexpected

changes in electricity demand or in the commercial conditions in the local and

international markets;

14. Action or negligence of a producer’s sub-contractor, including regarding the

construction and/or operation of the facility, and including any action or negligence

by the gas supplier and/or the gas distribution company;

15. A malfunction in the producer’s facility, including due to regular use and/or

manufacturing defects and/or maintenance and/or faulty maintenance and/or

facility wear;

16. Delay in the connection to the electricity distribution and/or transmission network

and/or the gas distribution and/or transmission network;

17. Any Action or negligence by the producer contrary to the directions of the System

Manager or the law;

18. Failure to pass the acceptance examinations, including due to the reasons specified

in sub-closes 1 – 17 above.


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“Senior debt financers” – the parties to the financing agreements of the senior debt (not including

the producer and/or his representatives);

“System Manager” – as defined in the Electricity Sector Law, 1996;

“Supplier” – a holder of a supply license, as defined in the Electricity Sector Law, 1996;

“facility” – a dual-fuel facility used for the production of electrical energy by a conventional

producer and/or the production of electrical and thermal energy by a co-generation producer, or a

pumped storage facility for the production of electrical energy, or a renewable energy facility for the

production of electrical energy, including, among others, production units, structures, machines,

instruments, batteries, conductors, accessories and stationary or mobile electrical equipment

related to the facility. To clarify, the requirement of dual-fuel operation specified in this standard

shall not apply to sites for which approved plans exist at the time of entry into force of this standard

for the operation of co-generation facilities using natural gas only, and whose connected load does

not exceed 100 MW;

“Acquisition transaction” – a contract between a holder of an Essential Service Provider license and

a producer for the acquisition of electrical energy and/or the provision of available capacity and

electrical energy, as well as the provision of infrastructure services and backup services by the

provider to the license holder;

“Financial closure” – the signing of relevant agreements regarding the extension of senior debt, all

credit, as may be required from the financing entities, required for the construction of a facility and

its lawful operation, provided that with the entry into force of these agreements, the producer of

electrical energy shall be entitled to withdraw funds from the aforementioned financing entities for

the construction of a power station, without further authorization from the aforementioned

financing entities or any other entity;

“Essential Service Provider” or “provider” – as defined by law, including the System Manager;

“Overall interest” – the overall interest (base + margin) that applies to a loan in accordance with the

relevant senior debt financing agreement;

“Long term interest for a specific date” – index linked Shekel interest for a specific date, index

linked Dollar interest for a specific date or index linked Euro interest for a specific date, as the case

may be;

“Long term Euro interest for a specific date” – the closing rate of the Euro Swap Rate for the

nearest possible period to the selected average duration regarding the long term Euro senior debt

loan, in accordance with the highest quotation on the ICAP8 page on the Reuters screen, published

5 days prior to the specific date;

“Long term Dollar interest for a specific date” – the closing rate of the US Dollar Swap Rate for the

nearest possible period to the selected average duration regarding the long term Dollar senior debt


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loan, in accordance with the highest quotation on the ICAP8 page on the Reuters screen, published

5 days prior to the specific date;

“Long term index linked Shekel interest for a specific date” – a weighted average of the “gross yield

to maturity” of 3 series of index linked government bonds with fixed interest, whose time to

maturity is closest to the selected average duration regarding the long term index linked Shekel

senior debt loan, and for which the following cumulative conditions are met: (a) bonds whose

cumulative trading value (proceeds cycle in thousand Shekels) during the 5 trading days prior to the

specific date is not less than 10,000,000 NIS; (b) the average duration of at least one of them is

shorter than the selected average duration regarding the long term index linked senior debt loan,

and the average duration of at least one of them is longer than the selected average duration

regarding the long term index linked senior debt loan; and (c) the average of the average durations

of the 3 aforementioned series shall not be shorter than the selected average duration regarding the

long term index linked Shekel senior debt loan; the weighted average shall be calculated in

accordance with the nominal values registered for trade for each aforementioned bond during the 5

trading days preceding the specific date;

“Average duration of a loan” –

, defined as follows:

∑

∑

“Payment” – any projected payment for fund and/or interest (as the case may be) regarding the

loan;

PMTi – payment sum for period i;

t – number of installments until final payback of the loan;

i – the period (in terms of 6 months) from the date of taking the loan until the projected date of

each installment;

r – the interest rate in accordance with the loan agreement (in terms of 2 years) divided by 2;

“Average duration of a bond” – in accordance with the average duration definition of the loan, with

the required changes and the following change: r – the average gross yield to maturity of the bond

during the 5 trading days preceding the specific date, divided by 2;


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Counting the number of days in accordance with this standard – (1) the phrase “until..” regarding

time, place or reference, shall mean until inclusively; (2) where a period of time is given in days or

weeks from a specific date, the specific date shall not be counted; (3) unless explicitly specified, rest

days, holydays or dies non prescribed by law shall also be counted, except if they are the last days of

the period.


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131. Notification regarding a force majeure event and its classification

(a) Notification to the provider regarding a force majeure event

Producers wishing to rely on the rate arrangement with the provider in case of a force majeure

event shall promptly notify the provider about the force majeure event and its termination.

(b) Request for force majeure event classification

A Producer incurring damages from an event perceived by him as a force majeure event shall

promptly submit a request to the chairman of the Authority, not later than 21 days from the

date of learning about the event perceived by him as a force majeure event, to recognize the

event as a force majeure event, and shall deliver a copy of the request to the provider. The

Authority shall decide whether the event is a force majeure event, not later than 10 days from

the date of receiving from the producer all the information required by it, at its sole discretion,

For the purpose of making the aforementioned decision (hereinafter: “force majeure event”).

The Authority may postpone the date of reply by a reasonable period of time depending on the

circumstances of the event and the information required by it on order to reach a decision.

(c) Details to be included in the request

The notification specified in close (b) above shall include, among others, the reason, nature and

type of the damages, the expected duration of the interference and any other details relevant to

the delay or damages.

(d) Failure to submit a request

Failure to submit a request for the classification of an event as a force majeure event as

specified above shall be considered as waiver by the producer regarding any claim to the

existence of a force majeure event, unless otherwise decided by the Authority.

(e) The Authority’s power to recognize a force majeure event

The Authority shall decide whether a specific event is a force majeure event, as defined in this

standard, the staring date of the force majeure event, the duration of the event, the

classification of the event as a delaying event or a terminating event regarding the acquisition

transaction, including the payment amount due to the producer, and all subject to these

standards.


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132. Rate arrangement in case of a force majeure event

(a) Conditions for a rate arrangement in case of the delaying force majeure event

(1) In case of an event that meets the conditions specified in sub-close b of the definition of a

force majeure, and meets at least one of the conditions specified in sub-close c of the

definition of a force majeure, but is not on the list specified in sub-close d of the definition

of force majeure, and is not describe by sub-close a of the definition of force majeure (war

and acts of terrorism), the Authority shall consider delaying the dates specified in the

production license, with the approval of the minister, and extending the acquisition

transaction only for the duration of the delay, and subject to the approval of the

aforementioned delay, the period of the force majeure event shall not be considered a

violation of the provisions of the license and/or the acquisition transaction. In the

aforementioned case, the producer shall not be entitled to receive any payment for the

event qualifying for a delay of dates, nor to the rate arrangements specified in these

standards below, except for payments entitled to him in accordance with his Rate

Authorization, during the extension period of the acquisition transaction and license, and

subject to the sale of energy by the producer to the provider during this period in

accordance with the requirements of the System Manager.

(2) The rate arrangement specified below in case of a delaying force majeure event and a

terminating force majeure event shall apply only to force majeure as defined is sub-close a

of the definition of force majeure, i.e. in case of war or act of terrorism, and/or meeting the

conditions specified in sub-close c of the definition of force majeure.

(b) Delaying force majeure event

(1) If the effect of one or more force majeure events last up to 270 cumulative days during the

time of constructing the facility, or 180 cumulative days during 24 consecutive months after

the commercial operation of the facility, or if the aforementioned dates are extended by the

Authority because of a facility renovation period, as specified in close (3) below, the event

shall be considered a delaying force majeure event. For the purpose of the aforementioned

periods, periods of less than 7 consecutive days shall not be counted, and the producer shall

have no claim regarding them in accordance with this standard, including towards the

provider. To clarify, if a delaying force majeure event lasts longer than 7 consecutive days,

for the purpose of the aforementioned periods, the force majeure event shall be counted

from the 8th day. In case of a delaying force majeure event occurring after the commercial

operation of the facility, the provider shall pay the producer a rate for the following

amounts:

(a) Direct expenses incurred by the producer during a delaying force majeure event that

meets the conditions of this standard and directly caused by it, provided they are

approved by the Authority in advance and in accordance with the terms of the approval.

To clarify, the aforementioned payments shall not include payments due by the


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producer to the gas supplier during the delaying force majeure event. For the purpose

of this sub-close and for the purpose of the term “direct expenses”, payments due by

the producer according to the senior debt financing agreements shall not be included;

(b) Regular payments of the senior debt (fund and/or interest only) due by the producer

during a delaying force majeure event, as long as the effect of the delaying force

majeure event lasts (hereinafter: “the delay period”). To clarify, in case of a delaying

force majeure event, the term of the acquisition transaction shall be extended by the

duration of the delay period, but during the extension of the term of the acquisition

transaction, availability payments shall not be made to the producer, if he is entitled to

any in accordance with his Rate Authorization, but during the extension period

payments shall be made to the producer for different operating expenses as specified in

the Rate Authorization, provided that during this period energy is sold by the producer

to the provider in accordance with the requirements of the System Manager. A

condition for the payment of senior debt payments by the Essential Service Provider, as

specified in this sub-close, shall be that no distinction is made in the senior debt

financing agreement between financing expenses paid due to a delaying force majeure

event and financing expenses paid regularly by the producer in accordance with the

senior debt financing agreement;

(c) After the effect of the delaying force majeure event is ended, and the facility is returned

to normal operation, the following arrangement with the Essential Service Provider shall

apply: 40% of the payments made by the provider to the producer, as specified in close

(a) (2) below, during the delaying force majeure event and during not more than 180

cumulative days during 24 consecutive months after the commercial operation of the

facility, shall be considered as debt of the producer to the provider. This debt shall be

considered subordinate to the senior debt (fun + interest only) and preceding any

payments due by the producer in accordance with the payment plan, as specified in the

senior debt financing agreement (hereinafter: “subordinated debt”);

(d) The subordinated debt shall incur linkage differentials and interest in the rate applicable

to the senior debt financing agreements plus 2%, from the date of payment to the

producer and until the date of payment to the provider;

(e) The producer shall repay the subordinated debt to the provider at the dates of payment

to the financers of the long term senior debt, in accordance with the senior debt

agreements, from the first payment date of the fund and interest. On each payment

date, the producer shall repay the maximum payable amount to the provider, until the

full pay back of the debt;

(f) The provider may not deduct any sum or charge due to the producer from the

producer’s subordinated debt to him;


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(g) To dispel any doubt, during the period of the delaying force majeure event after the

commercial operation of the facility, the producer shall not be entitled to any availability

payments.

(2) In case of a delaying force majeure event, meeting the cumulative condition specified in

close a – c of the definition of force majeure specified in standard 130, occurring before the

commercial operation of the facility, the following payments shall be added to rate paid to

the producer by the provider after the commercial operation of the facility:

(a) Direct expenses incurred by the producer during a delaying force majeure event and

directly caused by it, provided they are approved by the Authority in advance and in

accordance with the terms of the approval. To clarify, the aforementioned payments

shall not include payments due by the producer to the gas supplier during the delaying

force majeure event. For the purpose of this sub-close and for the purpose of the term

“direct expenses”, payments due by the producer according to the senior debt financing

agreements shall not be included. A condition for the payment of senior debt payments

by the Essential Service Provider, as specified in this sub-close, shall be that no

distinction is made in the senior debt financing agreement between financing expenses

paid due to a delaying force majeure event and financing expenses paid regularly by the

producer in accordance with the senior debt financing agreement;

(b) Notwithstanding the payment of direct expenses by the provider specified above, if the

producer operates the facility more than 60 days after the date specified in the

acquisition transaction due to a delaying force majeure event, payment in the amount

of the regular senior debt payments (fund and/or interest only) due by the producer

during the delaying force majeure event, from 60 days after the date specified in the

conditional license for commercial operation of the facility until the date of commercial

operation of the facility (herein after: “the delay period”), shall be added to the rate

paid by the provider to the producer for the acquisition transaction after the

commercial operation of the facility, and the term of the acquisition transaction, if

exists, shall be extended by the duration of the delay period, but during the extension of

the term of the acquisition transaction, availability payments shall not be made to the

producer (fixed or variable), if he is entitled to any in accordance with his Rate

Authorization, but during the extension period payments shall be made to the producer

for different operating expenses as specified in the Rate Authorization, provided that

during this period energy is sold by the producer to the provider in accordance with the

requirements of the System Manager;

(c) After the effect of the delaying force majeure event is ended, and the facility is returned

to normal operation, the following arrangement with the Essential Service Provider shall

apply: 40% of the payments made by the provider to the producer, as specified in close

(a) (2) above, during the delaying force majeure event and during not more than 210

cumulative days after the commercial operation of the facility, in which senior debt


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payments are made in accordance with sub-close (b) below, shall be considered as debt

of the producer to the provider. This debt shall be considered subordinate to the senior

debt (fun + interest only) and preceding any payments due by the producer in

accordance with the payment plan, as specified in the senior debt financing agreement

(hereinafter: “subordinated debt”);

(d) The subordinated debt shall incur linkage differentials and interest in the rate applicable

to the senior debt financing agreements plus 2%, from the date of payment to the

producer and until the date of payment to the provider;

(e) The producer shall repay the subordinated debt to the provider at the dates of payment

to the financers of the long term senior debt, in accordance with the senior debt

agreements, from the first payment date of the fund and interest. On each payment

date, the producer shall repay the maximum payable amount to the provider, until the

full pay back of the debt;

(f) The provider may not deduct any sum or charge due to the producer from the

producer’s subordinated debt to him.

(3) General:

(a) If any direct physical damage is caused to the facility and/or any part thereof due to a

delaying force majeure event that meets the cumulative conditions specified in this

standard, whether during the period of construction or the period of operation, the

produce shall submit to the Authority, not later than 120 days after the force majeure

event, a plan for the repair of the physical damage directly cause to the facility by the

force majeure event, as well as the schedule required for conducting the repairs

(hereinafter: “renovation plan”). To clarify, the renovation plan shall not include works

required by the producer regardless of the force majeure event causing the physical

damage to the facility.

(b) Subject to its sole discretion, and with consideration of the circumstances relevant to

the renovation plan, the Authority may approve the renovation plan, required its

modification or reject it, in whole or in part, in accordance with the conditions

established by the Authority.

(c) The maximum renovation period shall not exceed 36 months. The Authority shall

authorize extensions of the delaying force majeure event periods specified in closes (1)

and (2) of this standard in accordance with the renovation plan, provided that the

extension does not exceed 36 months.

(d) If the Authority authorizes the renovation plan, the Essential Service Provider shall pay

the producer for the direct expenses incurred by the producer due to the renovation

plan, from the date of commercial operation, as specified in the decision of the


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Authority. Duplicate payments shall not be made between the provisions of this close

and the provisions of this standard.


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133. Rate arrangement in case of a termination of an acquisition transaction due to a force

majeure event

(a) Conditions for establishing the existence of a terminating force majeure event

If the Authority decides that no renovation plan, as specified in standard 132 (Rate arrangement

in case of a force majeure event), shall be authorized for the facility, and in any case not before

the end of the periods specified in the standard, the producer or the Essential Service Provider,

with the approval of the Authority, may cancel the acquisition transaction by submitting a

written cancellation notice that will enter into force within 21 days of its submission

(hereinafter: “terminating force majeure event”). A copy of the cancellation notice shall be

delivered to the following entities: (1) the Authority; (2) the provider; (3) the Manager of the

Electricity Administration; and (4) representatives of the senior debt financers. For the purpose

of the aforementioned periods, periods of less than 7 consecutive days shall not be counted,

and the producer shall have no claim regarding them in accordance with this standard, including

towards the provider or the Authority. To clarify, if a delaying force majeure event lasts longer

than 7 consecutive days, for the purpose of the aforementioned periods, the force majeure

event shall be counted from the 8th day. Furthermore, the renovation period specified in close

(b) (3) of standard 132, if authorized by the Authority, shall not be counted in the number of

days of the effect of a force majeure event, as specified in this standard.

(b) The Authority’s right to prevent the cancellation of an acquisition transaction

Notwithstanding the above, in case of a cancellation request, as specified in close (a) above, and

if it is decided that the facility shall not be renovated by the producer, as specified in close (1) (c)

of standard, the Authority may prevent the cancellation of the acquisition transaction by the

producer for a period on not more than one year, subject to payment to the producer by the

Essential Service Provider during this period, as specified in standard 132.

(c) Termination of the transaction with the approval of the Authority in case of continued effect

of the event

In accordance with the conditions specified in closes (a) and (b) of this standard, at the end of

the established period specified in closes (a) or (b) above, and while the effect of the force

majeure event on the facility continues, the producer or the provider may cancel the acquisition

transaction with the approval of the Authority due to a terminating force majeure event. With

the cancellation of the acquisition transaction the following shall apply.

(d) Essential Service Provider rates for a producer in case of a force majeure event

(1) The provider shall pay the producer an amount equal to the debt balance (as defined in

these standards) of the producer in accordance with the senior debt financing agreements

at the time of cancellation of the acquisition transaction in accordance with standard 134 (a)

(1) below, or, alternatively, the provider shall act in accordance with standard 134 (a) (2)


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below, and all in accordance with the instructions of the Authority and with the following

sums deducted:

(a) Payment refunds of any type made to the producer, including provident fund, property

tax, etc.;

(b) Sums in accounts or funds of the producer (or available to him) at the time of

cancellation of the acquisition transaction, including funds for debt, operation,

maintenance or renovation;

(c) Any insurance benefits due in accordance with insurance policies the producer is

required to purchase in accordance with standard 137 (except for third party liability

insurance, employers liability insurance, product liability insurance and officials liability

insurance);

(d) Sums from any unpaid producer account, including savings accounts of service

obligations at the time of the force majeure event, unless the Authority approves the

withdrawal of any sums from these accounts after the force majeure event;

(e) The sum of realizable guarantees and securities for the senior debt financers and all

claimable sums at the time of cancelling the acquisition transaction or after its

cancellation, under other financial obligations of the producer’s stock holders to the

senior debt financers;

(f) And without taking into consideration:

(1) Outstanding sums at the time of the cancellation due to violation, act or negligence

of the producer in accordance with the senior debt financing agreements, including:

(1) sums of interest; (2) fines; (3) prepayment fees; (4) costs and losses due to

hedging and other payments;

(2) Any sum provided by the senior debt financers in accordance with the senior debt

financing agreements for any purpose other than the construction, operation and

maintenance of the facility.

(e) Transferring the rights of the producer a holder of a System Management license

With the cancellation of the acquisition transaction by the provider and/or the producer, and as

a condition for the payment in the sum of the senior debt balance by the provider, as specified

in close (d) above, the producer’s rights regarding the facility shall be transferred to the holder

of a system management license, free from any pawn, foreclosure or third party rights and

without any legal or other restraint to the operation of the facility by the provider or its

representatives, except for a restraint caused by the force majeure event. The provider shall not

be obligated to fulfill any agreements for the sale of energy and/or the provision of availability

singed between the producer and any third parties in connection with the facility, and the


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aforementioned third parties shall have no claim against the provider. Without derogating from

the generality of the aforementioned:

(1) The provider shall be entitled to enter the facility and take immediate possession and

control over it;

(2) The producer shall transfer all rights to any movable property within the facility or outside

the facility that constitute (or is supposed to constitute) part of the facility to the provider;

(3) The producer shall transfer all documents related to the facility, including the operating

procedures of the facility, to the provider;

(4) The producer shall assign all agreements related to the operation of the facility, warranties

provided to the producer and insurance policies, as requested, to the provider;

(5) The producer shall settle all his obligations regarding properties and rights transferred to

the provider by this standard and related to the period preceding the aforementioned

transfer. Without derogating from the generality of the above, the producer shall

compensate the provider for any damage, loss, claim, cost or expense related to the any

failure to settle the aforementioned obligations;

(6) The provider shall be entitled to act in any other way to fulfill his full rights with the

cancellation of the acquisition transaction, as specified above. The producer shall act in

accordance with the instructions of the provider to this end, including cooperating with the

provider and its representatives for the purpose of transferring information, providing

access to the facility, singing the required agreements for implementing the full rights of the

provider with the cancellation of the acquisition transaction, receiving information from any

representative of the producer and guiding the provider and/or its representatives in the

operation of the facility;

(7) As a condition for being entitled to the rate arrangements in accordance with the standard,

the producer shall ensure in advance that in all the agreements signed by him regarding the

facility, including, and without derogating from the generality of the above, agreements

relating to the financing, construction and operation of the facility, as well as agreements

between the producer and any third party regarding the sale of energy and/or the provision

of available capacity, the right of the provider, as specified in this close, shall be guaranteed.

Any agreement between the producer and the holder of the rights to the land on which the

facility is built (hereinafter: “facility land”), shall specify that in case of a cancellation of the

acquisition transaction due to force majeure event, as specified in this standard, the

producer’s rights regarding the facility land (possession and/or easement and/or ownership)

shall be transferred to the provider, and the cancellation of the acquisition transaction shall

not cancel the rights of the producer and/or the provider regarding the facility land;


364

(8) Any sum due to the producer in accordance with this standard shall be retained by the

provider until the fulfillment of the producer’s obligations specified in this close, including

the transfer of possession of the facility to the Essential Service Provider/


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134. Payment

(a) Payment

The payment specified in standard 133 (d) shall be made by one of the following alternatives,

specified herein in accordance with the decision of the Authority:

(1) Prepayment of the senior debt:

(a) The prepayment date shall be on the first payment date following the provision of prior

notification, as specified in close (c) below, in accordance with the amortization

schedule established in the senior debt financing agreements;

(b) The sum of the fund of the prepaid debt shall be in New Israeli Shekels or the equivalent

sum in US Dollars or Euros, as the case may be;

(c) The provider shall notify the senior debt financers about his intention to prepay the

debt at least 21 days prior to the prepayment date, specifying the sum of the fund of the

debt to be prepaid, the interest for the debt, an estimate of the linkage differentials for

it and the prepayment fee, calculated as if the prepayment date is on the date of the

prior notification. The prior notification shall irrevocable;

(d) At the prepayment date, the provider shall transfer the prepaid sum to the senior debt

financers, as follows:

(1) The prepayment fee incurred by the provider shall be in the amount (if positive) of

the difference between: (1) future payments (fund and interest) as specified in this

standard to be prepaid by the provider, capitalized to the present value at the time

of the prepayment in accordance with the long term interest rate for the

prepayment date plus the margin of the loan in accordance with the senior debt

financing agreements minus 0.15%; and (2) the balance of the loan fund. The

prepayment fee paid by the Essential Service Provider shall be in the amount (if

positive) calculated by the following formula:

∑

∏

With:

MW = sum of the prepayment fee;

ERt = expected payment of fund and interest in accordance with the adjusted

amortization schedule (with t being the payment number due at the time of the

prepayment);


366

R = base interest, in accordance with the average duration of the debt balance at

the time of the prepayment;

Mi = the relevant applicable margin in accordance with the financing agreement;

P = 0.15%

T = the number of payments of the fund and interest in accordance with the

adjusted amortization schedule, from the first payment after the prepayment date

and until the full pay back of the debt;

N = the number of annual debt service payments;

OD = debt balance at the time of prepayment. In addition, if the senior debt

extended to the producer is in foreign currency (in whole or in part) and any

hedging agreements relating to it exist, the prepayment fee shall be calculated as

specified in the table marked as supplement 2 (Mark to Market) in Authority

decision no. 1 of meeting 268 of 19/7/2009;

(e) Except for the aforementioned in sub-close (d) above, no fine, prepayment fee or any

other cost specified in the financing agreements (including interest rate raise) shall be

added to the payment due by the provider for prepayment of the senior debt in

accordance with the senior debt financing agreements;

(2) Installment payment:

(a) Notwithstanding the senior debt financing agreements, the provider shall pay the debt

amount by installments in accordance with the amortization schedule specified at the

time when the provide begins to pay the senior debt amount, based on the amortization

schedules specified in the senior debt financing agreements, given all the payments and

prepayments made by the producer before the senior debt due date;

(b) If the senior debt due date, as specified above, does not fall on a business day, it shall be

postponed to the next banking business date, except if this day falls on the following

month, in which case the due date shall be moved to the preceding banking business

day. Notwithstanding any change to the due date, as specified above, the interest rate

and linkage differentials regarding the aforementioned in this close shall be calculated in

accordance with the due date specified in the amortization schedule, as specified in sub-

close (a) above;

(c) The interest rate applied to the senior debt, from the date of entry into force of the

payment of the senior debt balance to the independent producer for the

aforementioned acquisition transaction, shall be the same as the general interest rate

applied to the load at this date minus 0.5%;


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(d) The deduction rate in accordance with sub-close (c) above (0.5%) shall be calculated for

each interest period by the following formula:

( )

With:

Ne = periodic deduction rate;

n = number of interest period per year;

(e) The “interest period” is the period from the last interest payment date until the next

interest payment date, in accordance with the amortization schedule. *…+. The debt

fund in accordance with the senior debt financing agreements, their interest and

prepayment fee, shall be lined to the consumer price index at the time of the financial

closure (hereinafter: “base index”). If, at the time of the senior debt prepayment by the

provider, the known index for the prepayment date (hereinafter: “new index”) shall

differ from the base index, the provider shall pay the senior debt multiplied by the new

index and divided by the base index. For the purpose of this calculation, the new index

shall not be lower than the base index.


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135. General provisions regarding force majeure

(a) General provisions regarding force majeure

In case of a force majeure event, as specified above, the producer shall have cause to fail to

meet his commitments under the acquisition transaction, subject to the following:

(1) All decisions and/or acts by the parties regarding a force majeure event shall be aimed at

fulfilling the obligations of the parties to renovate the facility and minimize the effects of the

force majeure event regarding the producer. To dispel any doubt, as a condition for the

producer’s eligibility to receiving the rates specified in this standard, and as part of the

producer’s aforementioned commitment to minimize the effects of a force majeure event,

any agreement between the producer and a sub-contractor constructing or operating the

facility shall specify, among others, that in case of a delaying force majeure event preventing

the sub-contractor from conducting the work under the agreement between the producer

and sub-contractor (in whole or in part), the compensation to which the sub-contractor shall

be entitled to shall be adjusted accordingly, and the producer shall not be liable for more

than the payments required to maintain the sub-contractor’s work team on the site for the

duration of the delaying force majeure event;

(2) In case of a force majeure event, the producer and/or the supplier, as the case may be, shall

be exempt from any action required under the acquisition transaction and/or the standards

that they are unable to perform due to the force majeure event, and the Essential Service

Provider or the producer, as the case may be, shall not be entitled to terminate the

acquisition transaction due to a force majeure event, except in accordance with the

provisions of these standards;

(3) Notwithstanding the above, this standard shall not relieve the provider or the producer, as

the case may be, in case of a force majeure event , from any commitments that are not

related to the force majeure event or affected by it;

(4) Producers who obtain an exemption from any commitment due to a force majeure event

shall cease to be exempt from this commitment when the effects of the force majeure event

are removed, repaired or cease to exist;

(5) Payments due by the provider to the producer in accordance with this standard, if any,

except for payments due to a force majeure event, shall be made by the provider to the

producer from the date in which the producer obtains the permanent license for electricity

production from the Authority and during the remaining term of the acquisition transaction,

in accordance with the spread and rate established by the Authority, and at its sole

discretion;


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(6) Payments due by the provider to the producer in case of a terminating force majeure event,

both during the construction period and the operation period, shall be made by the provider

to the producer in accordance with the provisions of standard 134;

(7) To clarify, in case of termination of the acquisition transaction for reasons other than a force

majeure event, as specified in this standard, the producer’s subordinated debt balance with

the provider, if exists at the time, shall be deducted from the payments due by the provider

to the producer;

(8) Except for the aforementioned in this standard, the provider and/or the producer shall not

be entitled to any remedy from each other due to a force majeure event;

(9) Without derogating from the generality of the provisions regarding remedies to which the

producer is entitled by law, no payment shall be made in accordance with this standard

providing the producer with duplicate remedies, as well as regarding parallel or mutually

exclusive payment components in accordance with the standards.


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136. Application of a force majeure event arrangement

(a) Application

To clarify, rate arrangements in accordance with standards 130 – 140 shall apply to holders of

conditional independent production licenses for which the following accumulating conditions

apply:

(1) The aforementioned license holders are holders of licenses for independent electricity

production using conventional technology, co-generation (as specified in standard 133 (b))

technology, pumped storage or renewable energy, except self-producers, reaching financial

closure and obtaining a Rate Authorization from the date of this decision;

(2) The aforementioned license holders are related to electricity production facilities with a

normative worth of not less than 50 million New Israeli Shekels, from which the Essential

Service Provider is committed to purchase energy and/or energy and available capacity by

law;

(3) The aforementioned license holders have a senior debt at the time of a force majeure event,

and are not license holder who at the time of financial closure and at the time of obtaining

the Rate Authorization are not without a senior debt, and who wish to change the

composition of the senior debt financing after the financial closure and obtaining the Rate

Authorization;

(4) The aforementioned license holders meet all the conditions entitling them to the

aforementioned rate arrangements;

(5) The aforementioned license holders shall meet the following conditions:

(a) In cellular technology, a total connected load of up to 250 MW, completing financial

closure and obtaining a Rate Authorization not later than 1/1/2015, whichever is earlier,

and are entitled to rate arrangements in accordance with this rate arrangement;

(b) In natural gas co-generation technology, a total connected load of up to 100 MW, of

holders of conditional and permanent natural gas co-generation licenses, completing

financial closure and obtaining a Rate Authorization not later than 1/1/2015, provided

that the total connected load in natural gas co-generation conditional and permanent

licenses reaching closure before 1/1/2015 shall not exceed 1000 MW;

(c) In pumped storage technology, a total connected load of up to 800 MW, completing

financial closure and obtaining a Rate Authorization from the date of this decision and

1/1/2016, and are entitled to rate arrangements in accordance with this rate

arrangement, provided that the total connected load in pumped storage conditional and

permanent licenses reaching closure before 1/1/2016 shall not exceed 800 MW;


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(d) In conventional technology, a total connected load of up to 1300 MW, of holders of

conventional natural gas licenses, completing financial closure and obtaining a Rate

Authorization from the date of this decision to 1/1/2019, and are entitled to rate

arrangements in accordance with this rate arrangement, provided that the total

connected load in conventional natural gas conditional and permanent licenses,

including those under tender, reaching closure before 1/1/2019 shall not exceed 3470

MW;

(e) In wind technology, a total connected load of up to 400 MW, completing financial

closure and obtaining a Rate Authorization not later than 1/1/2018, whichever is earlier,

and are entitled to rate arrangements in accordance with this rate arrangement.

(b) Application of the arrangement to co-generation producers

(1) To clarify, rate arrangements of co-generation producers for force majeure event shall apply

as aforementioned, but independent co-generation producers shall be entitled to the

relative part of the compensation specified in the rate arrangements in this standard, in

accordance with the percentage of energy acquisition commitment out of the total energy

produced in the facility in peak and low hours during the term of the acquisition transaction

between the producer and the System Manager, as specified in regulations 7 (1) (a) and 7

(2) of the Electricity Sector Regulations (co-generation), 2004, relevant to his operation.

Under these circumstances, and as a condition for the application of the rate arrangement

specified in this standard, the producer shall be required to transfer all his rights in the

facility to the System Manager, as specified in standard 133 (e) above.

(2) Notwithstanding the above, if the means of control in the license holder are not held,

whether directly or indirectly, by the holder of the means of control in the premises where

the co-generation facility is established, and/or the means of control in the premises where

the co-generation facility is established are not held, whether directly or indirectly, by the

holder of the means of control in the co-generation license holder, the co-generation

producer shall benefit fully from the application of the rate arrangement specified in this

decision.

For the purpose of this close, “holding” shall be used in accordance with its meaning in the

Securities Law, 1968.

(c) Application of force majeure rates to relations between the parties to a acquisition

transaction

The aforementioned in this standard and the rates relating to force majeure events shall apply

to the relations between the parties to the acquisition transaction, and shall not affect the

establishment of rates by the Authority for the Essential Service Provider in case of a force

majeure event for the Essential Service Provider, including in relation to the provider’s book of

annual reliability reports. Notwithstanding the above, in case of a force majeure event as


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defined in this standard, the producer shall have no claim regarding a violation of the acquisition

transaction by the company.


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137. Force majeure rates and liability – insurance terms for an independent producer

(a) Obligation to meet the terms of the insurance

The Essential Service Provider shall be charged for the rate arrangements of an independent

power producer in case of a force majeure event and liability, as specified in the Authority’s

standards, subject to the producer’s compliance with the terms of the insurance specified in his

license conditions and as follows.

(b) Required insurances during the period of constructing the facility

During the period from the start of the facility’s construction work to the start of its commercial

operation, the license holder shall take out, at his own expense and responsibility, the

insurances specified below, in accordance with the insurances approval established by the

Authority:

(1) “Contractor’s work” insurance: including property insurance, third party liability insurance

and employer liability insurance;

In the aforementioned insurances, the work site shall be specifically defined as the area

intended for the construction of the facility, organization areas, dedicated access roads to

the aforementioned sites, and anywhere else, in Israel or the occupied territories, where

works related to the facility are conducted;

(2) All risk insurance for the facility, the equipment, the inventory or any other property: the

facility shall be insured for the full cost of its reconstruction, and the amount insured shall

not be less than the cost of reconstructing the facility, including all required accompanying

expenses for the reconstruction of the facility. Equipment, inventory and other property

shall be insured for their full value to the producer, and the insured amount shall not be less

than the cost of their re-purchasing. The insurance shall include damages normally covered

by machinery breakdown insurance and/or electronic equipment insurance. The insurance

shall cover damages caused by earthquakes and other natural disasters for the full value of

the aforementioned facility;

(3) Third party liability insurance: insurance for the liability of the producer by law in case of

death, bodily harm and/or physical damage to tangible property, caused to a third party

within the territory of Israel or the occupied territories, related to the construction of the

facility. This insurance shall include a cross liability close. The insurance shall cover the

liability of other insured parties, as defined below, for the actions and/or negligence of the

producer and/or its representatives. The liability limit of this insurance, for a single case and

in total for the insured period, shall be in the amount of at least a quarter of the normative

cost of constructing the facility, but not less than 5 million US Dollars and not more than 25

million US Dollars;


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(4) Employer liability insurance: insurance for the liability of the producer by law in case of any

bodily harm, disease or death, caused to any of the producer’s employees or to anyone

working for him, during and/or because of their work in the construction of the facility. The

liability limit of this insurance, for a single case and in total for the insured period, shall be in

the amount of at least a quarter of the normative cost of constructing the facility, but not

less than 5 million US Dollars and not more than 25 million US Dollars. The insurance shall

not include any exception or limitation regarding the liability towards foreign workers,

residents of the occupied territories, contractor’s workers provided by employment

agencies, contractors, sub-contractors and their employees. The insurance shall not include

any exception or limitation regarding the liability in case of youth employment. The

insurance shall be extended to cover the liability of other insured parties, as defined below,

in case a claim regarding an occupational accident is made that any of them has an

employer liability towards the injured party;

(5) Marine and aviation insurance: the producer shall purchase and maintain a marine and

aviation insurance policy regarding equipment purchased by him outside of Israel as part of

his operation as a license holder for the purpose of the construction or operation of the

facility. The marine insurance policies shall cover all risks (Institute Cargo Clause A) and

warehouse to warehouse, regardless of the terms of sale (the aforementioned insurance is

also required during the period of operation for replacement parts and other needs of the

production facility).


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138. Operating period of the facility – required insurances

(a) Required insurance during the period of constructing the facility

From the start of the facility’s commercial operation, the license holder shall take out, at his

own expense and responsibility, the following insurances:

(1) All risk insurance for any risk to the facility, the equipment, the inventory or any other

property: the facility shall be insured for the full cost of its reconstruction, and the amount

insured shall not be less than the cost of reconstructing the facility, including all required

accompanying expenses for the reconstruction of the facility due to loss or damages caused

by risks recognized by all risk insurance. Equipment, inventory and other property shall be

insured for their full value to the producer, and the insured amount shall not be less than

the cost of their re-purchasing. The insurance shall include damages normally covered by

machinery breakdown insurance and/or electronic equipment insurance. The insurance

shall cover damages caused by earthquakes and other natural disasters for the full value of

the aforementioned facility;

(2) Insurance of consequential loss for the facility: this insurance shall cover the loss of gross

profit (including increased operating expenses intended to prevent or minimized the

aforementioned loss), caused to the producer due to any loss or damages insured in

accordance with close (a) above. The insurance shall also cover loss of proceeds due to the

provision of availability in case of an insured event. The insured amount shall be equal to

the gross profit loss (turnover minus variable expenses) caused to the producer during the

indemnity period. The indemnity period shall be the same as the period required for the

reconstruction of the facility following a loss or damages, provided that the aforementioned

period shall not be less than 24 months;

(3) Third party liability insurance: insurance for the liability of the producer by law in case of

death, bodily harm and/or physical damage to tangible property, caused to a third party

within the territory of Israel or the occupied territories. This insurance shall include a cross

liability close. The insurance shall not include any exception or limitation of the liability

regarding the unloading of goods, strikes and lockouts, the liability for and towards

contractors, sub-contractors (of any level) and their employees. The insurance shall not

exclude the liability of the producer for accidental pollution damages. The insurance shall

cover the liability of other insured parties, as defined below, for the actions and/or

negligence of the producer and/or its representatives. The liability limit of this insurance, for

a single case and in total for the insured period, shall be in the amount of at least half of the

normative cost of constructing the facility, but not less than 10 million US Dollars and not

more than 50 million US Dollars;

(4) Employer liability insurance: insurance for the liability of the producer by law in case of any

bodily harm, disease or death, caused to any of the producer’s employees or to anyone

working for him, during and/or because of their work. The liability limit of this insurance, for


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a single case and in total for the insured period, shall be in the amount of at least a quarter

of the normative cost of constructing the facility, but not less than 5 million US Dollars and

not more than 25 million US Dollars. The insurance shall not include any exception or

limitation regarding the liability towards foreign workers, residents of the occupied

territories or contractor’s workers provided by employment agencies. The insurance shall

not include any exception or limitation regarding the liability in case of youth employment.

The insurance shall be extended to cover the liability of other insured parties, as defined

below, in case a claim regarding an occupational accident is made that any of them has an

employer liability towards the injured party.


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139. General provision regarding insurance

(a) Classification of authorized insurance companies

The license holder shall take out all insurances with an insurance company legally authorized in

Israel, whose income from general insurance premiums (elementary) in the preceding year was

not less than 1,250,000,000 NIS, or with an insurance company outside Israel, whose rating is

not below grade A according to S&P rating or grade A according to A.M Best rating, or an

equivalent rating.

(b) Validity of the insurance

All insurances shall be valid, as the case may be, from the start of the facility’s construction work

until the end of the acquisition transaction.

(c) Terms included in the insurance

All insurances shall include the following explicit terms:

(1) The State of Israel, the Essential Service Provider, the senior debt financers and the Public

Utilities Authority – Electricity (hereinafter: “other insured parties”) shall be included as

additional insured parties in all liability insurance policies for their responsibility regarding

the actions or negligence of the producer;

(2) The territorial borders regarding insurances shall be, as the case may be, the entire territory

of the State of Israel and the occupied territories, and/or the entire world, including the

United States and Canada. The jurisdiction regarding liability insurances is the entire world,

including the United States and Canada;

(3) The producer shall exempt all other insured parties and all their representatives regarding

the construction and operation of the facility from liability for any damages to property or

equipment introduced by them or on their behalf to the facility and for which the producer

is entitled to compensation in accordance with the insurances required by this standard (or

for which he would have been entitled to compensation if not for the deductible close or s

violation of the terms of the policy or an underinsurance). This exemption shall not apply in

any case of malicious damages;

(4) These insurances shall precede any other insurance taken by the other insured parties, and

the insurer shall waive any right to participate in insurances of the other insured parties for

any damages covered by the insurances of the producer. The insurer shall waive any right

given to him by close 59 of the Insurance Contract law, 1981;

(5) The insurer shall not cancel or reduce the insurances without provider with insured parties

with prior notification by registered mail 60 days prior to the entry into force of the

cancellation or reduction of the aforementioned cover;


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(6) The producer shall be required to provide confirmation regarding the existence of the

insurances for the period of the construction of the facility to the additional insured parties,

signed by the insurer, not later than 7 days before entering the work site or the starting date

of the construction work (whichever is earlier). In any case of discrepancy between the

provisions of the confirmation and the provisions of this standard, the producer shall adjust

his insurances to conform with the provisions of this standard;

(7) The producer shall be required to provide confirmation to the Authority regarding the

existence of the required insurances for the period of the operation of the facility to the

additional insured parties, signed by the insurer, on the day of starting the operation. In any

case of discrepancy between the provisions of the confirmation and the provisions of this

standard, the producer shall adjust his insurances to conform with the provisions of this

standard;

(8) The producer is required to renew his insurances regarding the operating period of the

facility every year, and to provide the additional insured parties and the System Manager

with a valid confirmation not later than 7 days prior to the date of renewing the insurances;

(9) The producer is required to inform his sub-contractors about the provisions of this standard

and to obtain their written agreement to the aforementioned provisions and their

commitment to act in accordance with this standard;

(10) The producer shall observe all the conditions and provisions of the policies, including any

instructions and requirements relating to means of prevention of damages and preparation

regarding risks involved in the operation of the facility;

(11) The insurances related to the construction period and/or the operating period of the facility

shall specify that if the insurers are exempt from payment in accordance with the insurance

policies due to fraud, falsification, non-disclosure or violation of a statement or any

condition of the insurance policies by any of the insured parties in accordance with the

insurance policies, the rights to compensation by the insurers of any of the other insured

parties in accordance with the insurance policies shall not be harmed;

(12) The producer shall bear the cost of the premiums for the different insurances at the dates

agreed upon with the insurers, and the cost of deductibles for the insured damages;

(13) If the liability limits of the insurance policies are reduced by a quarter or more, the producer

shall purchase additional insurance policies whose liability limits shall not be less than the

amounts specified above;

(14) The purchasing of insurances or the provisions of confirmations or their examination or

adjustments shall not constitute a confirmation of their conformity with the agreed upon or

place any responsibility on the other insured parties or their representatives or reduce the

liability of the producer in accordance with the acquisition transaction or any law, and the


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producer alone shall bear the obligation to repair, at his expense and responsibility, any

damages caused to the production facility or compensate or indemnify any third party for

damages caused to it, even if these damages are not covered by the insurances specified

above;

(15) The producer shall be required to update the insured amounts and the limits of liability at

any time and in accordance with the insurance requirements of his operation and exposure,

and to purchase additional insurance for the operation of the facility, provided that any

insurance taken by the producer for his own liability shall be extended to cover the liability

of the other insured parties and/or their representatives to the acts and/or negligence of

the producer, subject to the cross liability close, and that any insurance of property or

consequential loss taken by the producer shall include a waiver by the insurer to his right of

subrogation towards the other insured parties and their representatives, provided that the

waiver regarding the right of subrogation shall not apply to any person causing malicious

damage;

(16) The producer shall have no claim or demand of any kind towards the other insured parties

or their representatives regarding the content, extent and cover of the required insurances

specified above, and shall not raise any such claim or demand regarding it;

(17) The producer shall ensure that any engineer or consultant, employed by him for the

construction or operation of the facility, shall have a professional liability insurance with a

liability limit adequate for his work and including an extension covering the liability of the

additional insured parties regarding the acts or negligence of the aforementioned engineer

or consultant;

(18) The limits of liability specified for the different insurances and the limits of liability specified

in the confirmations specified above shall be the minimum requirements. At his own

discretion and in accordance with his experience, the producer shall be required to purchase

additional insurances and/or increase the limits of liability specified in the above closes and

aforementioned insurances in order to ensure the best insurance cover for his property,

profit and legal liability.

(d) Application of the standard

The provisions of this standard shall not apply to producers who, at the time of publication of

this standard, are in the process of constructing their facility and who hold insurance policies for

the duration of the construction period. These producers shall be required to act in accordance

with the provisions of this standard from the next renewal date of the insurance policies.

(e) Specification of the normative cost for insurance purposes


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To clarify, whenever an insurance is specified as a percentage of the normative cost, the

normative cost for insurance purposes under the producer’s Rate Authorization shall be

specified.

(f) Insurance benefits

The producer shall not be entitled to a rate arrangement from the provider under the standards

of force majeure and liability, unless the insurance benefits of his insurance policy are paid by

the insurers to a specific insurance account, as specified in the senior debt financing

agreements. Withdrawal from the insurance account shall be used for the following purposes

only:

(1) Insurance benefit paid in accordance with the property insurance policy, as specified above,

shall be used for the purpose of returning the facility to its condition prior to the insured

event for which the insurance benefits are received;

(2) Insurance benefit paid in accordance with the liability insurance policy shall be used to cover

the liability for which they are received.


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140. Insured event

In this standard:

“Insured event” – any event, excluded from consideration as a force majeure event by the provision

of close d. 9 Of the definition of “force majeure” specified in standard 130, and included in

insurance coverage by law (including the Property Tax and Compensation Fund Law, 1961) or in

insurance coverage in accordance with standard 138, for which the insured amounts specified in

standard 138 covers, notwithstanding the producer’s deductibles, at least 80% of the cost of re-

establishing the facility, in whole or in part;

“Cost of re-establishing the facility” – the required amount to return the facility to its condition

prior to the insured event, using only new and original components.

(a) Results of an insured event

In case of an insured event, the following shall apply:

(1) The producer shall collect insurance monies in accordance with the provisions of standard

138 and use these benefits for the purpose of returning the facility to its condition prior to

the insured event;

(2) In case of an insured event, the producer shall not be entitled to receive payment for direct

expenses and/or direct debt payments, as specified in the senior debt financing agreements.

(b) Release from acquisition transaction obligations

The producer shall be released from any his obligations under the acquisition transaction that

are affected by the insured event while the effect of the insured event lasts, and the provider

shall be released from any of his obligations under the acquisition transaction that are subject to

the obligations unfulfilled by the producer due to the insured event. In any case, the producer

shall not receive payments for fixed or variable available capacity.

(c) Exceptions to the release from acquisition transaction obligations

To clarify, the aforementioned in close (b) above regarding the release of the producer from his

obligations under the acquisition transaction shall not apply in the cases specified in closes d. 2,

3, 6, 12 -15 and 17 of standard 130, even if these events are insured by the producer.


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141. Liability

In this standard:

“Protections, protection systems, switching and command” – all equipment, materials and assets

used or intended to be used for the connection and disconnection (as the case may be),

automatically or manually, locally or remote, for the purposes of, among others, maintenance and

repair and in case of irregular and emergency states;

“Switching yard under the responsibility of a transmission license holder” – part of the extra-high

voltage array of the production facility, including all the equipment, materials and assets used or

intended to be used, as the case may be, for the connection of the producer’s facility or the

consumer’s facility to the electricity network after being transferred to the maintenance, operating

and safety responsibility of a transmission license holder with the completion of the acceptance

examinations;

“Producer, independent producer” – an independent power producer, as defined in the Electricity

Sector Law, 1996, including a self-producer, for which closes (b) (1), (b) (2), (b) (3), (c) and (e) (1) of

this standard shall apply regarding third parties;

“Production facility” – all the assets, equipment and property owned by the producer, or installed

by the producer, except for equipment installed on the premises under the responsibility of the

Essential Service Provider, used, or intended to be used, for production of energy or transmission of

energy to the electricity system, including, without derogating from the generality of the above, co-

generation units, transformers, protection and switching systems outside the area of the operating

yard, capacity regulation systems, L.F.C. system and communication lines;

“Electricity network” – as defined in the Electricity Sector Law, 1996, including the premises under

the responsibility of the Essential Service Provider;

“Network malfunction” – the total number of minutes in which the network is unavailable to

receive energy, regardless of the energy production capacity of the facility.

Liability for damages caused to the Essential Service Provider and the producer

(a) Compensating the producer for an act or negligence of the ESP

(1) a private producer shall be entitled to the remedies specified in sub-close (2) below from

the Essential Service Provider, for any act or negligence of the Essential Service Provider that

constitutes a violation of standards or the acquisition transaction, that prevents the

producer from meeting his obligations, in whole or in part, in accordance with the

acquisition transaction or the private transaction (hereinafter: “the act or negligence”),

provided that the producer would have been able to meet his obligation if not for the act or

negligence of the Essential Service Provider.


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(2) Under the circumstances aforementioned in sub-close (1) above: (a) the Essential Service

Provider shall pay the independent power producer the payments in accordance with the

daily production plan prevented from the independent power producer in accordance with

the acquisition transaction, and from an independent power producer of renewable energy

in accordance with the relevant production plan established for him, minus any expense

saved for the producer, and minus any other amount received by the producer as a result of

the act or negligence (for fixed available capacity, payment shall be made in accordance

with Table of Rates 6.5-1); (b) if the producer is prevented from utilizing a private

transaction due to an act or negligence of the Essential Service Provider, the Essential

Service Provider shall not charge the independent power producer for the cost of electricity

supplied by the Essential Service Provider for the private transaction, but any expense saved

for the producer and any other amount received by the producer as a result of the act or

negligence shall be deducted from this cost. To clarify, in any case, the producer shall be

charged for infrastructure services.

(3) The Essential Service Provider shall compensate the independent producer for any direct

physical damages caused to the production facility owned by the independent power

producer due to an act or negligence of the Essential Service Provider. The compensation

shall be in the amount of the cost required to return the facility to its condition prior to

incurring the damage, but any expense saved for the producer and any other amount

received by the producer as a result of the act or negligence shall be deducted from this

cost.

(4) Notwithstanding the aforementioned in sub-close (3) above, if the protections the

independent power producer is required to install, their maintenance and calibration in the

production facility, failed to prevent the damages to the independent power producer due

to an act or negligence of the producer, the producer shall not be entitled to the remedies

specified in sub-close (2) and sub-close (3) above.

(a1) liability of the Essential Service Provider towards a producer connected to the distribution

network

(1) Notwithstanding the above, the following arrangement shall apply to a producer connected

to the distribution network: the Essential Service Provider shall compensate producers

connected to the distribution network for any act or negligence of the Essential Service

Provider preventing producers from fulfilling an acquisition transaction due to inability to

transfer energy to the network. This compensation shall be given for the network

malfunction in the amount of the prevented acquisition transaction, provided that the

duration of the network malfunction is greater than the number of minutes specified in the

table “cumulative minutes of non-supply” (in supplement 1), in accordance with the

specifications of the line to which the producer is connected and provided that the producer

transferred energy to the network one hour prior to the act or negligence of the Essential

Service Provider.


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(2) If a producer is prevented from fulfilling an acquisition transaction, the Essential Service

Provider shall not charge the producer for the cost of electricity supplied by the Essential

Service Provider for the purpose of the private transaction, provided that the duration of

the network malfunction is greater than the number of minutes specified in the table

“cumulative minutes of non-supply”, in accordance with the specifications of the line to

which the producer is connected and provided that the producer transferred energy to the

network one hour prior to the act or negligence of the Essential Service Provider; any

expense saved for the producer and any other amount received by the producer as a result

of the act or negligence shall be deducted from this cost.

(b) Compensating the ESP for damages to the electricity network

(1) The Essential Service Provider shall be entitled to the remedies specified in sub-close (2)

below from an independent power producer for any act or negligence of the independent

power producer constituting a violation of the provisions of the standards or the acquisition

transaction regarding the transmission of energy from the producer’s production facility to

the electricity network of the Essential Service Provider.

(2) Under the circumstances specified in sub-close (1) above, the independent power producer

shall compensate the Essential Service Provider for any direct physical damage caused to the

transmission and/or distribution system as a result of the transfer of energy specified in sub-

close (1) above.

(3) Notwithstanding the aforementioned in sub-close (2) above, if the protections the

independent power producer is required to install, their maintenance and calibration in the

production facility, failed to prevent the damages to the independent power producer due

to an act or negligence of the producer, the producer shall not be entitled to the remedies

specified in sub-close (2) above.

(c) Liability of the producer for deviation from his obligations regarding sale of electricity

The provisions of this standard shall not derogate or diminish any of the obligations of the

producer and the Essential Service Provider regarding the sale of electricity under a private

transaction or an acquisition transaction, as specified in chapter F of the Book of Standards,

including the obligations of the producer in case failure to meet the plans.

(d) Liability of the ESP for a premises under his responsibility

With the transfer of a premises to the possession of the Essential Service Provider by, as defined

above, the provider shall be solely responsible for the premises on all matters, except for shared

systems such as fire extinguishing and grounding, which the independent power producer is

required to maintain and insure in accordance with the operation and maintenance agreement

with the Essential Service Provider.

(e) Third party liability


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(1) A consumer or a producer incurring damage to any device in their possession due to an

interruption in the electricity supply, including where the aforementioned damage is cause

by the act or negligence of another producer, shall apply to the Essential Service Provider for

compensation, in accordance with the provisions of standards 48 and 49.

(2) A consumer who incurs damages due to non-supply of electricity, including where the

aforementioned damage is cause by the act or negligence of a producer, shall apply to the

Essential Service Provider for compensation.

(3) The Essential Service Provider shall indemnify the independent producer for any damage for

which a consumer is entitled to apply to the Essential Service Provider for compensation, as

specified in sub-closes (1) and (2) above, including as part of a claim, action, procedure,

injunction, sentence or fine, at the date specified in the compensation claim, provided that

the aforementioned date shall not be earlier than 30 days from the date of the

aforementioned application.

(4) In any case of any claim or other legal procedure (hereinafter: “the procedure”) against the

independent power producer, for which the producer claims compensation from the

Essential Service Provider, as specified in sub-close (3) above, the independent power

producer shall notify the Essential Service Provider within 14 days from the date of receiving

a copy of the claim against him. To clarify, failure to notify the Essential Service Provider, as

specified above, shall not harm the right of the independent power producer for

compensation from the Essential Service Provider, unless this negates the rights of the

Essential Service Provider.

(5) If the Essential Service Provider is not a party to the aforementioned procedure, the

Essential Service Provider may submit a request to join the procedure as an additional

defendant in the compensation procedure.

(6) If the Essential Service Provider does not submit a request to join the procedure, or if his

request to join is rejected, the independent producer shall coordinate with Essential Service

Provider his defense against the compensation claim.

(7) The independent power producer shall not reach any settlement agreement in the

aforementioned procedure without full coordination with the Essential Service Provider.

(8) The Essential Service Provider may only reject a settlement agreement in the

aforementioned procedure on reasonable grounds. To dispel any doubt, any settlement in

the aforementioned procedure by the independent producer shall not relieve the Essential

Service Provider from the indemnity obligation specified in this close (including, and without

derogating from the generality of the above, legal expenses, lawyer fees and other expenses

for the purpose of fulfilling the indemnity obligation of the Essential Service Provider in

accordance with this close).


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(f) Liability of producers towards consumers on their premises

Notwithstanding the above, consumers who are not directly connected to the electricity

network, but are connected to the production facility in the premises of a producer, shall not be

entitled to any remedies from the provider, as specified in closes (e) (3) and (e) (4) above.

(g) Act or negligence of the gas transmission company or gas distribution company

If any act or negligence of a government company holding a gas transmission license or a gas

distribution license (as defined in the Natural Gas Sector Law, 2002) prevents an independent

power producer to fulfill his obligations, in whole or in part, in accordance with the acquisition

transaction or the private transaction (hereinafter: “the act or negligence”), the following shall

apply:

(1) The Essential Service Provider shall pay the independent power producer a rate in the

amount of the fixed availability payments in relation to the total available capacity of the

facility, provided that the producer was available, and subject to the obligations of the

independent power producer specified in the provisions of standard 125 (alternative fuel);

(2) If a producer is prevented from fulfilling an acquisition transaction due to the act or

negligence of the gas transmission company or the gas distribution company, the provider

and the producer shall act as specified in sub-close (1) above and the Essential Service

Provider shall charge the independent power producer for the cost of electricity provided by

the Essential Service Provider for the private transaction;

(3) The aforementioned above shall apply subject to the producers obligation to make use of all

the remedies entitled to him from the gas transmission company or the gas distribution

company, as the case may be;

(4) The aforementioned above shall apply in case of a malfunction of the gas transmission

system or the gas distribution system from the time the System Manager instructs the

producer to prepare to provide availability to the System Manager for the purpose of

operation by an alternative fuel. If the System Manager instructs the producer as

aforementioned, the producer shall switch to operation by an alternative fuel and shall

receive payment for fixed available capacity and operation by an alternative fuel, as

specified in standard 125 (alternative fuel);

(5) The aforementioned in this standard shall apply to producers under agreement with the

transmission or distribution company, in accordance with this agreement at the time of

publishing this standard.

(h) Conditions for non-fulfillment, delaying or limiting the provision of infrastructure services by

the Essential Service Provider to a holder of a supply license


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(1) The Essential Service Provider may delay the infrastructure transaction with the supply

license holder (hereinafter: “supplier”) if one of the following conditions are met regarding

the supplier (hereinafter: “delay event”), subject to providing a written notification:

(a) Failure to pay an undisputed debt due to the Essential Service Provider within 30 days

from the date of a written notification requesting payment, provided that the Essential

Service Provider delivers the notification to both the supplier and the Authority at the

same time;

(b) Cancellation of the supplier’s supply license;

(c) Non extension or renewal of a guarantee required from holders of a supply license by

law;

(d) Any other violation defined in principle by the Authority and added in this standard as a

principle violation of the infrastructure transaction.

(2) If the supplier does not correct his act or negligence for which the infrastructure transaction

is delayed, within 60 calendar days from date of the notification from the Essential Service

Provider, the Essential Service Provider may cancel the infrastructure transaction.

(i) Conditions for non-fulfillment, delaying or limiting the acquisition of energy, availability and

accompanying services by an Essential Service Provider to a holder of an independent

production license

(1) The Essential Service Provider may delay the acquisition transaction of energy, availability or

accompanying services with the holder of an independent power production license

(hereinafter: “independent power producer”) if one of the following conditions are met

regarding the independent power producer (hereinafter: “delay event”), subject to

providing a written notification:

(a) Failure to pay an undisputed debt due to the Essential Service Provider within 30 days

from the date of a written notification requesting payment, provided that the Essential

Service Provider delivers the notification to both the supplier and the Authority at the

same time;

(b) Failure to meet the requirements of the law regarding the operation and maintenance

of the production facility so as to present a safety hazard to persons and the system;

(c) A decrease in the connected load specified in the producer’s facility license of 50%, for a

continuous duration of one year from the third year of the operation of the facility

under a fixed production license, that is not due to a force majeure event or an insured

event;

(d) Cancellation of the production license of the independent power producer;


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(e) no of contract for the supply of a primary or secondary fuel;

(f) Any other violation defined in principle by the Authority and added in this standard as a

principle violation of the infrastructure transaction.

(2) If the independent power producer does not correct his act or negligence for which the

infrastructure transaction is delayed, within 60 calendar days from date of the notification

from the Essential Service Provider, the Essential Service Provider may cancel the acquisition

transaction.

(3) To clarify, from the start of the delay event, the independent power producer shall not be

entitled to sell availability and/or energy to the Essential Service Provider nor to receive any

payment and/or rate, including force majeure arrangements, insured event, warranty and

so on.


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(a) Resolve by the Authority

(1) Without derogating from the aforementioned in these standards, in case of any dispute

regarding the standards, the parties shall apply to the Authority to resolve it.


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Chapter G: Works on Account of Others

Section A: Standard Works

143. Definitions

In this chapter:

“Electrical materials” – equipment installed in the high voltage and low voltage distribution

networks, except equipment install as part of a civil work;

“Electricity consultant” – an engineer-electrician or a practical engineer-electrician, as defined in

the Electricity Regulations (licenses), 1985,10 or a legally certified engineer in any other fields,

provided that he has at least 5 years experience in the field of electrical power current, providing

consulting services in person or through a corporation.

10

Collection of Regulations 1985, p. 878.


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144. Charging consumers for works on account of others

(a) Charging for works on account of others

Charges for works on account of others shall be made in accordance with chapter 4.4 of the

Tables of Rates. The charges shall be made at the request of the work applicant and shall not

include any charge for replacement or improvement of existing infrastructure.

(b) Format of bills and the information they contain

(1) Bills for works on account of others shall be made in a clear manner allowing a reasonable

person to read and understand the nature of the charges and the method of their

calculation.

(2) Bills for works on account of others shall specify, among others, each work for which the

consumer is charged as described in the Tables of Rates, the components of the rate (civil

work, electrical materials and electrical work), the bills’ issue date and the last due date.

(c) Work planned to be conducted in whole or in part within 12 months from the date of the

request

(1) The Essential Service Provider shall not charge the work applicant for work already planned

to be conducted within 12 months from the date of the request, provided that the

schedules of the Essential Service Provider are accepted by the work applicant.

(2) If the Essential Service Provider plans to conduct only part of the requested work within 12

months from the date of the request, it shall charge the work applicant for the part of the

work that is not planned for the aforementioned period.

(3) At the request of the work applicant, the Essential Service Provider shall present the annual

plan for the maintenance and expansion of the relevant network to the work applicant.

(d) Conducting civil works included in the work through a contractor of the applicant

(1) The work applicant shall be entitled to conduct the civil works included in the requested

work through a certified contractor, under the following conditions:

(a) The contactor shall conduct all the civil works included in the requested work;

(b) The contractor is legally insured to cover and damages to body or property, for himself,

his employees and any third party, in accordance with the extent of the civil work;

(c) The contractor shall conduct all the works in accordance with the plans and instructions

provided to the work applicant by the Essential Service Provider;


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(d) The work applicant and the contractor shall be liable towards the Essential Service

Provider for the quality of the civil work and the schedules agreed upon with the

Essential Service Provider and the authorities.

(2) If the work applicant chooses to conduct the civil works not through the Essential Service

Provider, as specified above, the Essential Service Provider shall not charge the work

applicant for the aforementioned works.

(e) Purchasing the required electrical equipment not from the Essential Service Provider

(1) The work applicant may purchase the electrical equipment required to conduct the work

not from the Essential Service Provider, under the following conditions:

(a) The work applicant shall purchase the electrical equipment required to conduct the

requested work;

(b) The equipment purchased by the work applicant shall meet the electrical and safety

standards established by the proper authorities in legislation and shall be compatible

with the infrastructure of the Essential Service Provider’s network.

(2) If the work applicant chooses to purchase the electrical equipment from the Essential

Service Provider, the Essential Service Provider may charge the work applicant for the cost

of the electrical equipment required for the construction, relocation, alteration and

dismantling, provided that the Essential Service Provider is required to add electrical

equipment to the existing infrastructure on which the work is conducted, the charge shall be

for the added equipment installed only.

(3) If the underground line is longer than the overhead line, the applicant shall bear the

difference in the equipment cost between the underground line and the overhead line.

(f) Failure of the Essential Service Provider to meet schedules

(1) If the Essential Service Provider fails to meet the schedules specified in this standard and/or

the time tables agreed upon between him and the work applicant in the technical

coordination, the Essential Service Provider shall pay the work applicant the amount

specified in Table of Rates 12.1-1 for each day of delay.

(2) Subject to the written consent of the work applicant, the Essential Service Provider may

make the payment specified in sub-close (1) above by settlement in the bill issued to the

work applicant for the requested work.

(g) Non-liability for infrastructure damages

The Essential Service Provider shall not charge the work applicant for any damages caused to

infrastructure whose exact location has not been provided to the work applicant as required by

the provisions of close 146 (b) below.


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145. Submitting a request for works on account of others

(a) Submitting a request and information

Persons interested in conducting works on account of others shall apply in writing to the

Essential Service Provider and specify as many of the following details known to him:

(1) Address or block/parcel number of the property for which the work is required;

(2) The nature of the request;

(3) Reasons for the requested change;

(4) Requested dates for the conducting the work;

(5) The existence of self-production;

(6) The existence of the an alternative feed;

(7) The written consent of the owner, if the work applicant is not the owner of the property for

which the work is requested;

(8) Authorizations from the authorities if available.

(b) Reply to the request

(1) The Essential Service Provider shall reply to the aforementioned request in writing within 7

work days from the day of receiving the request at the provider’s offices, referring to the

following issues:

(a) The feasibility of the work in accordance with the standards and the provisions of the

law;

(b) Description of the work and its cost as of the date of the reply, as specified in Tables of

Rates 4.4-1 to 4.4-5;

(c) Possible dates for conducting the work;

(d) Any special requirements for conducting the work;

(2) If the requested work is already planned to be conducted, in whole or in part, within 12

months from the date of the request, as specified in close 145 (c):

(a) The Essential Service Provider shall inform the work applicant in his reply, specifying the

dates planned for the work and requesting the work applicant’s signed consent to

conducting the work at the aforementioned dates;


394

(b) If only part of the requested work is planned as aforementioned, the Essential Service

Provider shall attach to his reply a bill, as specified in close 145 (d) below, for the part of

the work that is not planned to be conducted within 12 months from the date of the

request.

(3) The Essential Service Provider and the work applicant may agree in writing that the work

shall be conducted through a fast track within a period not longer than 45 days. The

provisions of standard 149 below shall apply to the aforementioned work.

(c) Providing additional details in order to receive a reply

(1) In order to provide a reply, as specified in close 145 (b), the Essential Service Provider may

require the work applicant to provide additional details required to conduct the work, and

the work applicant shall promptly provide the information available to him.

(2) If the Essential Service Provider requires additional details, as aforementioned, the days

regarding the reply, as specified in sub-close 145 (b) (1), shall be counted from the date of

receiving the applicants response at the offices of the Essential Service Provider.

(d) Payment as a condition for opening a work file and beginning the technical coordination

(1) The Essential Service Provider shall attach to his reply a bill for 15% of the rate specified in

sub-close 145 (b) (2) (b) as a prerequisite for opening a work file and beginning the technical

coordination.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to this payment.

(3) The Essential Service Provider may amend or change the bill in accordance with the

provisions of these standards only.

(e) Request for examination or amendments to the application after opening a work file

The work applicant may request the Essential Service Provider to examine or amend the

application only after opening a work file, as specified in close 146 (a) below.


395

146. Technical coordination

(a) Work file and technical coordination

(1) Once payment is made by the work applicant as specified in close 145 (d), the Essential

Service Provider shall open a work file and begin the technical coordination of the works

with the work applicant or his consultant (hereinafter: “the technical coordination”).

(2) The technical coordination shall be completed within 14 days from the date of the payment

specified in close 145 (d), summarized in writing and constitute an agreement between the

Essential Service Provider and the work applicant.

(3) The technical coordination shall specify, among others:

(a) Work plan and work stages;

(b) Final schedule for conducting the work, provided that the schedule for the completion

of the work shall be within one year from the date of submitting the work request;

(c) Civil planning – including a measurement plan and a system coordination plan, and

electrical planning – including a specification of the electrical equipment required for

the work;

(d) Planned payment schedule;

(e) Special requirements form the work applicant;

(f) Division of responsibility to obtain relevant authorizations from the authorities;

(g) Information regarding the certified contractor though which the work applicant wishes

to conduct the civil works;

(h) Electrical equipment supply arrangements;

(i) In case of a work part of which is already planned to be conducted within 12 months

from the date of the request, as specified in close 144 (c) – the Essential Service

Provider’s written statement that during the period between the signing of the technical

coordination and the date of the payment, as specified in close 146 (d) below, none of

the works specified in the technical coordination are planned for the relevant electricity

network;

(j) At the request of the consumer with a unique consumption device, the Essential Service

Provider shall include an installation of a meter at the consumption location in the

electrical plan.

(b) A work applicant choosing to conduct civil works through his own contractor


396

(1) If the work applicant chooses to conduct the civil works through his own contractor, as

aforementioned, the Essential Service Provider shall provide him with a general plan of the

work, an operating plan in a scale of 1:250/500 and drawings and diagrams clearly specifying

the exact location of the infrastructure owned by the Essential Service Provider for all

voltage level and the existence of any other infrastructures in accordance with the

specification of the systems coordination plan.

(2) If the work applicant chooses to leave the civil works to the Essential Service Provider, the

Essential Service Provider shall provide the work applicant with a general plan for

conducting the work within the time period established in the technical coordination, as

well as an execution plan, at the request of the work applicant.

(c) Work including a location where the provided plans additional works

If the requested work, in whole or in part, includes a location in which the Essential Service

Provider plans to conduct additional works, the Essential Service Provider shall inform the work

applicant about these planned works and may request the written consent of the work applicant

to waive his right to conduct the civil works himself, as specified in close 144 (d).

(d) Payment at the time of completing the technical coordination and signing of the parties

(1) With the completion of the technical coordination and the signing of both parties, the

Essential Service Provider shall issue a request for payment to the work applicant in the

amount completing 85% of the total cost of the work, in accordance with the valid rate on

the date of issuing the bill. The Essential Service Provider shall not begin the work before the

aforementioned bill is paid.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to this bill.


397

147. Obtaining authorizations from the authorities

(a) Obtaining authorizations from the authorities with the completion of the technical

coordination

(1) With the completion of the technical coordination, as specified in close 146 (d), the Essential

Service Provider and the work applicant shall act to obtain the authorizations from the

authorities required for lawfully conducting the work. Notwithstanding the above, the

Essential Service Provider and/or the work applicant may begin acting to obtain the

aforementioned authorizations prior to the completion of the technical coordination. This

action shall not be considered part of the technical coordination specified in close 146 (a).

(2) If the Essential Service Provider and the work applicant shall act diligently and efficiently to

obtain the authorizations as soon as possible, and shall inform each other if any problems

arise to delay obtaining the authorization.

(b) Denial of authorization by an authority

(1) If an authority refuses to provide the authorization required to conduct the work, as

specified in the technical coordination, and/or conditions the aforementioned authorization,

the technical coordination between the parties shall be amended in accordance with the

requirements of the authority, including the work schedules.

(2) If the technical coordination as amended, as specified above, and the work rate components

are changed because of the amendment, the Essential Service Provider shall issue an

amended bill and the work shall be conducted in accordance with the amended technical

coordination.

(c) Authorization requiring plan changes

If an authority requires the amendment of plans as a condition for the authorization of the

planned work, and this amendment shall result in special or irregular costs, the Essential Service

Provider shall apply to the Head of the Engineering Department at the Authority to examine and

establish a unique rate, in accordance with the provisions of standard 153 (special cases) below.


398

148. Conducting the work

(a) Coordinating a date to begin the work and providing access

If the authorizations from the authorities to conduct the work are received at the offices of the

Essential Service Provider and the work applicant pays his bill, as specified in close 146 (d), the

Essential Service Provider shall coordinate with the work applicant in writing a date to begin the

work, and the work applicant shall allow the Essential Service Provider access to the location for

the purpose of conducting the work, provided that the land where the work is conducted is

owned by him or in his possession.

(b) Conducting the work in accordance with the technical coordination

The Essential Service Provider and the work applicant shall conduct the work in accordance with

the work stage, plans and schedules specified in the technical coordination.

(c) A work applicant choosing to conduct civil works through his own contractor

If the work applicant chooses to conduct the civil works through his own contractor, as specified

in close 144 (d), he shall be entitled to purchase and withdraw pipes for threading cables and or

any other civil equipment necessary to meet the requirements of the Essential Service Provider

regarding the civil works.

(d) Examination of the civil works and faults repair

(1) The Essential Service Provider shall examine the civil works during their execution and shall

be entitled to request its repair as a condition to continue with the requested work if he

finds that it is not conducted in accordance with the technical coordination.

(2) The aforementioned repairs to the civil work shall be made in accordance with a written list

of faults provided to the work applicant by the Essential Service Provider, and the work

applicant shall be responsible to repair the faults in accordance with the schedules agreed

upon in writing between him and the Essential Service Provider.

(e) Providing a copy of the execution plans to the provider with the completion of the civil works

With the completion of the civil works by the work applicant’s contractor, the work applicant

shall deliver a copy of the final execution plans signed by a certified surveyor to the Essential

Service Provider, as agreed upon in the technical coordination.

(f) Returning the site to its previous condition after the completion of the civil works

(1) To clarify, the Essential Service Provider or the work applicant conducting civil works

through his own certified contractor shall be responsible to return the site to its previous

condition after completing the civil works, including obtaining the approval of the local

authority to the fact, if necessary.


399

(2) If any of the parties violates his aforementioned obligation and does not act accordingly

within 3 days from the date of completing the civil works, the opposite party shall take

measures to return the site to its previous condition within 5 additional work days, including

the use of his own contractor, at the expense of the violating party.

(g) Examination of the equipment purchased by the work applicant

If the work applicant chooses to purchase his own equipment, as specified in close 144 (e), the

Essential Service Provider shall ensure that the equipment purchased by the work applicant

conforms to the provisions of the aforementioned standard before its use to conduct the work,

and shall instruct the work applicant to replace any electrical equipment that does not conform

to the provisions of the aforementioned standard.

(h) Work delay the is beyond the control of the Essential Service Provider

In case of a delay in the execution of the work due to an act or negligence of the work applicant

or its representatives, or due to another delay caused by a competent authority, that is beyond

the control of the Essential Service Provider, the days of the delay shall not count towards the

number days allowed to the Essential Service Provider to complete the work in accordance with

the technical coordination and/or the provisions of sub-close 149 (a) (5) below.

(i) Payment for the work

With the completion of the electrical work, the Essential Service Provider shall issue a request

for payment to the work applicant for the remaining cost of the work. Close 24 (b) regarding

bills for services rendered shall apply to this payment.


400

149. Conducting the work through the fast track

(a) Work agreed to be completed within 45 work days

If the Essential Service Provider and the work applicant agrees that the work shall be completed

within 45 work days, as specified in sub-close 145 (b) (4), the following conditions shall apply to

the work:

(1) The Essential Service Provider and the work applicant shall agree upon and sign a summary

technical coordination;

(2) All civil works included in the requested work shall be conducted by the Essential Service

Provider only;

(3) All electrical equipment required for the requested work shall be provided by the Essential

Service Provider only;

(4) The Essential Service Provider shall issue a request for payment in a the amount of 100% of

the total cost of the request work in accordance with the valid rate on the date of issue to

the work applicant, the payment of the bill shall be a prerequisite to the execution of the

work. Close 24 (c) regarding payment for services not yet rendered shall apply to this

payment;

(5) The Essential Service Provider shall complete the work within 45 work days from the date of

the receiving the payment specified in sub-close (4) above, provided that the work applicant

fulfills his obligations in accordance with the provisions of the standards;

(6) If the Essential Service Provider is late in completing the work, as specified in sub-close (5)

above, he shall act in accordance with the provisions of sub-close 144 (f) (1).


401

150. Amendment, change or cancelation of a work request

(a) Amendments and changes to a work request or any of its stages

(1) Amendments and changes to a work request or any of its stages shall be approved in writing

by the Essential Service Provider and the work applicant.

(2) The work applicant may request in writing an amendment and/or change of the

specifications of the request work without any additional payment for the introduction of

the aforementioned amendments and/or change to the work request and/or technical

coordination, provided that the technical coordination has not been completed yet, as

specified in close 146 (d).

(3) If a request for an amendment and/or change of the requested work’s specifications is

submitted after the technical coordination is complete, and the requested amendment

and/or change shall not result in a change to the total cost of the work, the work applicant

shall be charged an additional payment of 6% of the total cost of the requested work for the

introduction of the aforementioned amendment and/or change.

(4) The Essential Service Provider shall provide the work applicant with a list of the changes

required in the technical coordination within 10 workdays from the date of the submitting

the request for the change, including a specification of additional costs and changes to the

work schedule ensued by the requested change.

(b) Cancelling a work request

(1) If the work applicant cancels his request for any reason, including reasons beyond his

control, at any time after making the payment specified in close 145 (d), the amount paid in

accordance with this standard shall not be refunded to him.

(2) If the work applicant cancels his request at any time after making the payment specified in

sub-close 146 (d) (1) and before the Essential Service Provider completes the work, the

Essential Service Provider shall apply to the Head of the Engineering Department at the

Authority and request a determination of the costs incurred by him until the date of the

cancellation, in accordance with the provisions of close 153 (a) below, and shall charge the

work applicant for this amount only. The remaining payment minus the aforementioned

payment shall be refunded to the work applicant.

(3) The work applicant may not cancel the work request after the Essential Service Provider

completes the work, and shall be required to pay the Essential Service Provider the for the

remaining balance due to him for completing the work.

(4) If the cancelled work is conducted through the fast track and has not yet been started, the

Essential Service Provider shall refund the work applicant for 85% of the total cost of the


402

work. If the Essential Service Provider has stated the work through the fast track, the

provisions of sub-close (2) above shall apply to its cancellation.

(c) Cancellation by a work applicant choosing to conduct civil works through his own contractor

If the work applicant chooses to conduct the civil works through his own contractor, as specified

in close 144 (d), and cancels his request after the civil work are stated but before the electrical

works are started, he shall promptly act to return the site to its previous condition, as specified

in close 148 (f), and bear the costs of the cancellation, as specified in close 150 (b).


403

151. Removing obstacles

(a) Responsibility to remove obstacles

The Essential Service Provider or the work applicant conducting civil works through his own

certified contractor shall be responsible to immediately remove any obstacle encountered at

any stage of the civil work. If any of the parties violates his aforementioned obligation and does

not act accordingly within 3 days, the opposite party shall take measures to remove the

obstacle, including the use of his own contractor, at the expense of the violating party.


404

152. Information transparency, report and control

(a) Transparency and information

(1) The Essential Service Provider and the work applicant shall conduct each of the stages of the

work with full transparency and sharing of information between both parties regarding the

requested work.

(2) The Essential Service Provider shall specify on each order the name of the contact person for

the work applicant and his contact information during the work.

(3) The Essential Service Provider shall inform the work applicant about the start and end dates

of each stage of the work, not later than 5 work days before execution.

(4) The work applicant or his representatives may be present at the site during the execution of

the work, and may request in real time any information, document or action involved in

obtaining it, both on the work site and at the offices of the Essential Service Provider and in

accordance with the technical coordination.

(5) The execution stages specified in the technical coordination shall be indicated in the work

order issued by the Essential Service Provider.

(b) Record and documentation

The Essential Service Provider shall keep a record and documentation of the requested works

and the payments received for them, in order to prevent him from collecting duplicate

payments for the same work, whether through payment by the work applicant or through the

consumption rate.

(c) Electrical equipment costs incurred by the Essential Service Provider

The costs of electrical equipment incurred by the Essential Service Provider in accordance with

close 147 (b) shall be recorded in the books kept by the Essential Service Provider as cost of

capital.


405

153. Special cases

(a) Request for a different rate

(1) If the Essential Service Provider wishes to apply a different rate than the rates specified in

this chapter to the works on account of others, he shall apply to the Head of the Engineering

Department at the Authority in writing with a reasoned request.

(2) The Head of the Engineering Department at the Authority shall examine the request and

decide whether to refer the matter to the Authority’s plenum for the approval of a special

rate for the work.

(3) If necessary in order to reach a decision, the Head of the Engineering Department at the

Authority may request additional information from the Essential Service Provider and the

work applicant.

(b) Informing the applicant and alternatives

If the Essential Service Provider applies to the Head of the Engineering Department at the

Authority with a request, as specified in close 153 (a) above, he shall inform the work applicant

in writing about his application and ask him to select one of the following alternatives in order

to continue the work:

(1) In accordance with the written and signed consent of the work applicant, the Essential

Service Provider shall continue the work, subject to the undertaking of the work applicant to

pay the special rate established for the request work;

(2) In accordance with the written and signed consent of the work applicant, the work shall be

delayed until a special rate is established for the requested work and the delay shall not be

considered a deviation from the work schedules specified in the technical coordination.


406

154. To be determined













407

Chapter H: Environmental Quality

Section A: Premium for Benefiting the Economy by Reduction of Pollution

166. Premium eligibility

(a) Premium payment

The Essential Service Provider shall pay producers of renewable energy who meet the conditions

specified in these standards a premium in the amount of reduced polluting emissions in the

producer’s production facility in comparison with the production facilities of the Essential

Service Provider, as specified in Table of Rates 11.1-2.

(b) Producers of renewable energy

Holders of an independent production license or a self-production license whose production

facility’s capacity is 100 KW or more, and is operated by the following methods, shall be

considered producer of renewable energy:

(1) Sun; wind; water; biomass; energy derived from waste disposal sites (biogas) established

before 1/10/2003; sewage or other natural phenomena (hereinafter: “renewable energy”);

(2) Renewable energy with the use of fossil fuel, under the following conditions:

(a) The use of fossil fuel shall not exceed 30% of the amount of energy producer by the

facility;

(b) The use of fossil fuel shall be necessary for the operation of a renewable energy

production facility.

(c) Production facilities operating occasionally operated by fossil fuel only

A producer of renewable energy whose production facility is sometimes operated by fossil fuel

only shall not be entitled to the premium for the electricity produced during these occasions.


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167. Applying to the Authority to set the premium amount

(a) Premium authorization

In order to obtain authorization for the premium amount from the Authority, the producer shall

apply to the Authority using the application form for setting the premium amount for producers

of renewable energy attached to this standard, with a copy of his production license and a

confirmation from the Ministry of Environmental Protection regarding the level of emission

from the production facility.


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Application form for setting the premium amount for producers of renewable energy

(in accordance with standard 167 (applying to the Authority to set the Premium amount))

A copy of the production license and a confirmation from the Ministry of Environmental Protection

regarding the level of emission from the production facility.

Name of

Applicant

Name of Company:

Contact Person:

Address:

City: Street:

Phone: Mobile: Postal Code:

Fax:

Electronic Mail:

Productio

n Facility

Location of the facility:

Area of the facility:

Number of production units:

Connected load of each unit:

Total expected production in the facility (in kWh):

Energy used for production (specify types of energy used for production and

their percentile part in the production):

Details of the production process:

ישראל מדינת

ציבוריים לשירותים רשותה

חשמל

State of Israel

Public Utilities Authority

Electricity


410

Details of the project’s progress (if the station is not yet complete: details of

the main stages and dates in the construction of the production facility,

including raising the required financing):

Pollution

level

Expected pollution level (expected emission level for each type of emission

in gram/kWh):

Pp:

Pc:

Ps:

Pn:

Types of fuels in use; energy mix:

Station efficiency:

Technologies for the reduction of emission levels (specify technologies for

pollution cleaning used in the facility):

Expected future changes to the pollution level:

Emission measurement equipment in the facility (meter type, location,

measured emissions, measurement frequency):


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Other

premiums

Details of other premiums or financial support currently received or received

in the past by the applicant from the government of Israel:


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168. Payment of the premium

(a) Application to receive the premium

In order to receive the premium, the producer shall apply in writing to the Essential Service

Provider with a copy of the premium amount authorization issued to him by the Authority.

(b) Payment

The Essential Service Provider shall pay the producer in accordance with authorized premium

until its expiration or until the expiration of the producer’s license, unless the producer requests

in writing to stop receiving the premium in order to participate in an emission trade mechanism,

when organized, or if an updated premium amount authorization is issued by the authority.

(c) Updated or modified premium

If the premium amount is updated or modified by the Authority, the Essential Service Provider

shall act in accordance with the updated premium amount authorization delivered to him by the

Authority.

(d) Calculation of the premium and payment start date

The Essential Service Provider shall pay the producer a premium for each Kilowatt-hour sold to

the Electric Corporation or to any other entity through the Electric Corporation’s electricity

network or produced by a holder of a self-production license. The premium shall be paid from

the date of establishing the facility or from the date of receiving the premium amount

authorization, whichever is later.

(e) Issuing bills

(1) The Essential Service Provider shall issue and deliver a bill to producers of renewable energy

in accordance with the provisions of chapter F above, depending on the classification of the

producer.

(2) In addition to the provisions of standard 82 (issuing bills to producers), the Essential Service

Provider shall specify in the aforementioned producer’s bill the calculation of the premium

for renewable energy production.

(3) In case of a producer holding a self-production license who does not purchase electricity or

sell electricity to the electricity network, the Essential Service Provider shall issue a bill for

the payment of the premium.

(f) Installing a meter at the terminals of the production facility of a self-production license holder

If required, the Essential Service Provider shall install a meter at the terminals of the production

facility of a self-production license holder for the purpose of counting the number of kWh


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produced by the facility. For this service, the producer shall pay the Essential Service Provider

for the cost of meter installation, as specified in line 9, “removing and installing a meter”, of


(g) Meter reading

Once per month, at the beginning of the month, in order to issue a monthly bill, the Essential

Service Provider shall read the collected meter data for the previous month. For this service the

producer shall pay the Essential Service Provider in accordance with Table of Rates 5.4-1 (fixed

payment for consumption services), depending on the classification of the producer.


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169. Reports


Once per year, under the annual environmental report, the Essential Service Provider shall

submit to the Authority a report regarding the amount of electricity produced from renewable

energy by renewable energy producers, as defined in standard 166 (b), and by the Essential

Service Provider.


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Section B: Premium for Reduction of Pollution in Existing Fuel Oil Stations

170. Premium eligibility

(a) Premium payment

The Essential Service Provider shall pay producers using fuel oil in existing production facilities

who meet the conditions specified in these standards (hereinafter: “fuel oil producers”) a

premium in the amount of reduced polluting emissions in the production facility of the license

holder in comparison with the mandatory standard levels, as specified in Table of Rates 11.1-3.

(b) Premium eligibility

Fuel oil producers whose production facility operated by license using fuel oil before August

2006 shall be considered eligible for a premium.


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171. Applying to the Authority to set the premium amount

(a) Premium authorization

In order to obtain a temporary or permanent authorization for the premium amount from the

Authority, the producer shall apply to the Authority for a form for setting the premium amount

for fuel oil producers, with a copy of his production license and a confirmation from the Ministry

of Environmental Protection regarding the mandatory level of emission of the production facility

and the level of their reduction.


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172. Payment of the premium

(a) Application to receive the premium

In order to receive the premium, the producer shall apply in writing to the Essential Service

Provider with a copy of the premium amount authorization issued to him by the Authority.

(b) Payment in accordance with the authorized rate

The Essential Service Provider shall pay the producer in accordance with authorized rate until its

expiration or until the expiration of the producer’s license.

(c) Modified rate

If the Rate Authorization is modified by the Authority, the Essential Service Provider shall act in

accordance with the new authorization.

(d) Installing a TLR meter at the terminals of the production facility

If required, the Essential Service Provider shall install a TLR meter at the terminals of the

production facility for the purpose of counting the number of kWh produced by the facility. For

this service, the producer shall pay the Essential Service Provider for the cost of meter

installation, as specified in Table of Rates 5.4-2 (removing and installing a meter).

(e) Meter reading

(1) Once per month, at the beginning of the month, in order to issue a monthly bill, the

Essential Service Provider shall read the collected meter data for the previous month. For

this service the producer shall pay the Essential Service Provider in accordance with Table of

Rates 5.4-1 (fixed payment for consumption services), depending on the classification of the

producer.

(2) If the producer’s meter is regularly read by the Essential Service Provider for the purpose of

issuing an infrastructure services bill or for any other purpose, the producer shall not be

charged any additional “fixed payment”.

(f) Premium payment schedule

Once per month, the Essential Service Provider shall pay fuel oil producers for each produced

kWh measured by the meter from the date of obtaining the Rate Authorization and in

accordance with its provisions.


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173. Issuing bills

(a) Issuing bills

(1) The Essential Service Provider shall issue and deliver a bill to fuel oil producers in accordance

with the provisions of chapter F above, depending on the classification of the producer.

(2) In addition to the provisions of standard 82 (issuing bills to producers), the Essential Service

Provider shall specify in the aforementioned producer’s bill the calculation of the premium

for pollution reduction in existing fuel oil stations.

(3) In case of a producer holding a self-production license who does not purchase electricity or

sell electricity to the electricity network, the Essential Service Provider shall issue a bill for

the payment of the premium.


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174. Reports


Once per year (not later than February), the Essential Service Provider shall submit to the

Authority a report regarding the sum of the payments made by it in the previous year (between

1 January and 31 December) in accordance with the Rate Authorization of each producer,

including a specification of the payment months by producer, the amount of kWh and payment

thereof.


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Section C: Distributed Energy Production for Self Consumption and Consumer

Production Using a Photo-Voltaic or Wind Turbine System

In this section:

“Photo-voltaic system” – a system for the production of electricity using photo-voltaic technology for

self consumption, including, among others, photo-voltaic receptors, a metering system and direct to

alternate current convertor, with a connected load of up to 15 KW for a domestic consumer and 50 KW

for any other consumer;

For the purpose of this definition, “connected load” – the nominal power of the convertor according to

the manufacturer’s specifications;

“Premises” – for the purpose of chapter H only – a land area or a number of continuous land areas with

shared borders, owned by or chartered to or in possession of a single individual. In areas of historic

electricity distributers where a process of allocating land to persons (parceling) has not been completed,

premises shall be land in exclusive possession and use of a person;

“Person” – as defined in the Interpretation Law, 1981, including his relatives, a corporation in his control

or in the control of his relatives or a corporation he or his relatives are members of.

“Relative” – spouse (including common law spouse), parent, grandparent, offspring, spouse’s offspring

and the spouses thereof, brother or sister and their spouses;

“Control” – as defined in the Securities Law, 1968;

“Wind turbine system” – a system for the production of electricity using a small wind turbine, including

a wind turbine, tower, metering system and electricity network adaptor, with a connected load of up to

15 KW for a domestic consumer and 50 KW for any other consumer;

For the purpose of this definition, “connected load” – the maximum wind energy in KW produced by the

wind turbine and measured by production meter at a wind speed of 9 meters per second and according

to the manufacturer’s specifications;

“Facility” – for the purpose of this standard – a system for the production of electricity using photo-

voltaic technology or wind turbine technology for self consumption;

“Distributer” – for the purpose of this standard – including a historical distributer, as defined in

Authority decision 272 of 11/8/2009 and subject to its terms;

“Domestic consumer” – for the purpose of this standard only – a domestic rate consumer whose

consumption location is for used residential purposes only. To clarify, structures such as warehouses,

sheds, parking roofs, even if they are adjacent to the residential structure, shall not constitute part of

the consumption location for the purposes of this standard;

“Facility integration” – connection of a facility to a private electricity network fed by the public network;


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“Suitable size connection” – a permanent connection size suitable for the facility size at the

consumption location.

175. Integration of a facility into the network by a distributer

(a) Integrating a facility into the electricity network

(1) At the request of a registered consumer and in accordance with the provisions of this

section, the distributer shall integrate a facility at the consumption location registered to

the consumer for the production of electricity for self consumption and the transfer of

excess electricity produced by the facility and not used by the consumer to the electricity

network, within the dates specified in this standard below.

(2) At the request of a domestic consumer, the distributer shall integrate a photo-voltaic

system, in accordance with this section, into the electricity network, as specified in Table of

Rates 6.7-5.

(3) At the request of a non-domestic consumer, the distributer shall integrate a photo-voltaic

system, in accordance with this section, into the electricity network, as specified in Table of

Rates 6.7-5.

(4) At the request of the consumer, the distributer shall integrate a wind turbine system into

the electricity network, provided that the total connected load of all wind turbine systems,

as defined in this standard, in the national electricity market does not exceed 30 MW.


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176. Consumer payment arrangements

(a) Consumer rate and cost of electricity produced in the facility – general

(1) The distributer shall charge the consumer a rate for electricity consumption at the

consumption location as specified in chapter B (electricity consumption), section B (bills and

payments) of the Book of Standards. In addition to this rate, the distributer shall charge the

consumer for the additional payment specified in Table of Rates 5.4-1 (addition to the fixed

payment of a consumer with a facility).

(2) For electricity producer in the facility, the consumer shall be entitled to the rate specified in

Table of Rates 6.7-5 for a photo-voltaic facility and Table of Rates 6.7-6 for a wind turbine

facility, in accordance with the production meter reading.

(3) The aforementioned settlement between the distributer and the consumer shall be made in

accordance with the law, including the tax laws applicable in the State of Israel from time to

time.

(4) The aforementioned settlement between the distributer and the consumer shall be made

for a period of 20 years from the date of connecting the facility.

(5) At the end of the aforementioned 20 years, the distributer shall act in accordance with any

arrangements established by the Authority at the time.

(b) Payments for electricity produced in a domestic consumer’s facility of a total capacity of up to

4 KW

(1) If the domestic consumer’s facility is of a total capacity of up to 4 KW, the distributer shall

settle with the consumer under the normal consumption bill of the domestic consumer and

clearly indicate it in separate lines. This settlement shall be based on the reading of the

domestic consumer’s production and consumption meters only, and shall be made by

deducting the payment to which the consumer is entitled for electricity produced in the

facility during the billing period from the rate due by the domestic consumer for electricity

consumption during the billing period, in accordance with the following formula:

[ ]

Where:

A = the amount of kWh measured by the production meter;

B = the amount of kWh transferred to the network by the domestic consumer in accordance

with the consumption meter reading;

C = the amount of kWh consumed from the network by the domestic consumer in

accordance with the consumption meter reading.


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To dispel any doubt, payment for electricity consumption for a TLR domestic consumer shall

be calculated separately for each demand hour cluster.

(2) Following the aforementioned deduction specified in sub-close (1) above, if the domestic

consumer has a remaining balance in an amount exceeding 100 NIS, the distributer shall

transfer the remaining balance to the domestic consumer. If the aforementioned balance is

in the amount of 100 NIS or lower, it shall be transferred to the next electricity bill.

(c) Payments for electricity produced in a non-domestic consumer’s facility or in a domestic

consumer’s facility of a total capacity greater than to 4 KW

(1) If the domestic consumer’s facility is of a total capacity greater than to 4 KW or in case of a

facility of a non-domestic facility, the distributer shall deliver under the normal consumption

bill a notification regarding the consumer’s payment eligibility, specifying the amount of

kWh produced in the facility during this period and the payment the consumer is entitled to

for it. In order to receive the aforementioned payment, the consumer shall provide the

distributer with a legal tax invoice to be paid by the distributer within 60 days from receiving

it. If the distributer is late in payment to the consumer he shall incur interest for delay, as

specified in standard 6.

(2) A consumer, in accordance with close (c) (1) above, may provide the distributer with an

irrevocable order (hereinafter: “the order”) to transfer payment to a designated account

and on which the distributer shall sign. The distributer shall not prevent the consumer from

assigning his rights to the payments due to him for electricity production to a third party,

including to the financing entity, by way of encumbrance of cash flow. The distributer shall

not deduct the debt of the consumer, nor transfer monies for this cost to anyone, nor

receive a contradictory order to transfer the costs from any entity but the consumer and/or

the order’s beneficiary and in accordance with the order.

(3) If the consumer does not pay for electricity consumption, the distributer shall act in

accordance with standard 24, provided that a copy of the “payment reminder – notification

prior to disconnection” letter sent to the consumer is also sent to the beneficiary of the

order in accordance with close (c) (2) above. To clarify, this close shall not place any

responsibility on the distributer towards the beneficiary of the order or its representatives

for any result, act or negligence that may be incurred by the beneficiary or another third

party due to the delivery of the notification and/or disconnection of the consumption

location.

(d) Payment arrangement for a facility when changing consumers

(1) The change of consumers who participate in the arrangement specified in this section shall

be made in accordance with standard 19 (changing consumers), and regarding the payment

arrangement for the facility, shall constitute the end of the agreement with the leaving

consumer. Following the change of consumers and signing of the new consumer on the


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agreement regarding the payment arrangement with the distributer, the distributer shall

continue the payment arrangement for electricity produced in the facility with the new

consumer. The signing of the agreement with the distributer by the new consumer shall be a

condition for continuing the payment arrangement for electricity produced in the facility.

(2) Notwithstanding the aforementioned in sub-close (d) (1) above, the distributer shall require

consumers who transfer their rights to electricity services for a specific property and provide

an order, as specified in close (c) (2) above, to submit a joint statement with the new

consumer in the property and the beneficiary of the order, within 45 days, notifying the

distributer about a cancellation, transfer or conversion of the order.

(3) If the distributer does not receive the notification aforementioned in sub-close (d) (2) above,

he shall not be liable regarding the arrangement specified in this section.

(e) Settlement between the distributer and the holder of a transmission license

(1) Once per month, the distributer shall submit to an Essential Service Provider holding a

transmission license or the System Manager after his establishment a report regarding the

total recognized payment made by him to consumers with a facility for electricity produced

in their facilities, in accordance with the provisions of close (a) (1) above. The

aforementioned report shall be backed up by a statement signed by the distributer and

confirmed by a lawyer.

(2) Once per month, the holder of a transmission license or the System Manager shall pay the

distributer for the cost of the total payments made by him in accordance with the

aforementioned report minus self consumption.

(3) Any bill not paid by its due date shall incur interest for delay, as defined in standard 6.


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177. Submitting a request for integration of a facility into the electricity network


Consumers interested in information regarding a possible connection of a facility shall apply to

the distributer in the relevant area, verbally or in writing, and the distributer shall deliver all the

relevant information to him within 7 work days from the date of the application. The distributer

shall also display all the information relevant to his consumers on his internet site, as specified

in this standard.

(a1) Registering on the internet site before submitting a request

(1) A holder of a transmission license shall allow consumers who are interest in submitting a

request for connection of a facility to register on a dedicated internet site before submitting

the request for connection of the facility to the network, and shall promptly transfer the

requests to the holder of a distribution license or to historical distributers in whose area the

consumers are registered as aforementioned.

(2) An Essential Service Provider holding a distribution license, including a historical distributer,

shall summon the consumer to his offices for the purpose of submitting a request for

connection of a facility to the network, not later than 30 work days from the date

registration on the dedicated internet site of the holder of the transmission license.


A request for connection of a facility to the network shall be submitted by consumers to the

distributer with the following documents and information as a prerequisite for the approval of

the request by the distributer:

(1) Details of the consumer (name, address, phone number, consumer/meter/contract number,

etc.);

(2) Type of facility (PV or wind turbine facility) planned;

(3) Planned connected load;

(4) Estimated installation date;

(5) Regarding wind turbines – a copy of the wind turbine authorization from the local

committee of planning and development, including, among others, a plan signed by a civil

engineer;

(6) The original building permit or an original permit for limited work provided by the relevant

planning authority for the installation of a photo-voltaic system or a wind turbine at the

consumption location registered to the consumer; to clarify, the building plan is an integral

part of the building permit. If the consumer claims he is not required to provide the


426

aforementioned permit, he shall attach to his request a suitable written authorization

signed by the authorized persons in the relevant planning authority;

(7) Proof of an existing permanent connection and a suitable connection size for the size of the

facility, as specified in standard 178. To clarify, opening a request to increase the size of a

connection shall not be enough to prove conformity with this prerequisite, but the

consumer shall be required to prove the actual existence of a suitable connection for the

size of the facility.

The applicant shall be required to prove that in year preceding the submission of the

request (at least) a connection of suitable size for the size of the intended facility existed at

the consumption location for which the request is submitted, as specified in standard 178

(a) (1).

This provision shall not apply to a new consumption facility for which a from 4 is received

during the 12 months preceding the submission of the request, provided that the requesting

consumer is able to prove the existence of a connection of a suitable size for the size of the

facility and a permanent connection at the consumption location;

(8) A plan for the integration of the facility in the consumption location to the electricity

network of the Essential Service Provider. The aforementioned plan shall include the

proposed location of the electricity meters, so that:

(a) The facility’s bi-directional consumption meter shall be installed at the point where the

consumer’s existing consumption meter is located and in its stead;

(b) The production meter shall be installed in accordance with one of the following

alternatives:

(1) At the closest possible location to the point where the consumption meter is

installed allowing the Essential Service Provider reasonable access to read, operate

and maintain the meter;

(2) If the production meter cannot be installed at the location specified in sub-close (1)

above for technical reasons, it shall be installed at a location suggested by the

consumer, provided that the consumer installs duct piping between the production

meter and the consumption meter to be used by the distributer for the threading of

a command line to transfer data from the production meter to the consumption

meter;

(3) If the aforementioned command line cannot be installed for technical reasons, or at

the request of the consumer, the distributer shall install a communication line, in

accordance with Table of Rates 5.4-2, in order to allow him to install a remote

reading meter as a production meter at a suitable location for the consumer;


427

(c) The establishment of the aforementioned facility does not require investment in the

network, including upgrading of existing infrastructures that would not be required

otherwise.

(c) Additional details and amendment to the plan of integration into the network

(1) In order to reply to the aforementioned request of integration of a facility, the distributer

may request additional details from the consumer required for the connection of the facility

or the amendment of the facility’s connection plan. The consumer shall promptly provide

the requested additional information in accordance with the comments of the distributer or

inform the distributer that he is unable to provide the requested information.

(2) If the distributer requires additional details or the amendment of the facility’s integration

plan from the consumer, as aforementioned, the days required by the consumer in order to

reply to the aforementioned request shall not count towards the number of days required

for a reply by the distributer to a facility connection request, as specified in sub-close (d)

below.

(d) Replying to a request to integer a facility into the network

(1) The distributer shall reply to the request of a consumer to integrate a facility within 21 days

from the date of receiving the request, as follows:

(a) If the consumer does not meet the prerequisite and/or the request of the distributer for

additional details, the distributer shall reject his request to integrate the facility,

specifying the reasons for the rejection;

(b) If the consumer meets the prerequisite and the request of the distributer for additional

details, the distributer shall notify the consumer in his reply about the electricity rate t

which the consumer is entitled in accordance with Table of Rates 6.7-5 for a photo-

voltaic facility and Table of Rates 6.7-6 for a wind turbine, and provide the consumer

with a principle guarantee to connect the facility in accordance with the plan attached

to the request, provided that the consumer meets the technical requirements specified

in standard 178. In his reply, the distributer shall specify the schedules for the

integration of the facility into the electricity network;

(c) If the distributer does not reply to the consumer’s request within the time specified

above, he shall compensate the consumer for the amount specified in Table of Rates

12.1-1 (payments for violation of standards).

(2) The distributer shall not guarantee the connection of the facility to the network before

verifying with the holder of the transmission license, or the System Manager with its

establishment, if an amount is available for the installation of the system and the suitable

rate for the connection applicant.


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(3) The distributer shall not guarantee the connection of the facility to the network if changes

to the existing electricity network are required and these changes cannot be completed

within 180 days.

(4) To clarify, not more than a single domestic facility with a capacity of up to 15 KW fed by a

single existing meter, or a single facility with a capacity of up to 50 KW fed by a single

existing meter, shall be installed in the same premises.

(5) The guarantee for the connection of the facility to the network shall remain valid for 180

days from the day of providing it to the consumer. If the aforementioned 180 days expire

and the facility is not connected yet connected to the network, for any reason, the

guarantee shall expire and the distributer shall not connect the facility to the network.

(e) Rate for examination of the facility and its integration into the electricity network

(1) The distributer shall attach to its reply to the request for the integration of the facility a bill

to paid as a condition for the examination and connection of the facility, as follows:

(a) For the examination of the facility, the consumer shall pay in accordance with line 7 of

Table of Rates 4.3-1 (rate for examination/re-examination of a facility);

(b) For changing the consumption meter and installation of a production meter, the

consumer shall pay in accordance with line 9 of Table of Rates 5.4-2 (removing and

installing a meter) for each meter.

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to the payment in

accordance with this standard.

(f) Changing the request

The consumer may change the request of the plan for the connection of the facility before the

facility passes the examination of the distributer, provided that the change are submitted in

accordance with the procedure specified in this standard.

(g) Consumer objections regarding the rejection of the request

Consumers may submit their objections to the distributer’s decision to the distributer in writing.

(h) Distributer response to consumer objections

If a consumer submits his objections to the distributer in writing, the written response of the

distributer shall be delivered to the consumer and the Authority in accordance with standard 33

(Handling written and phone complaints by consumers).


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178. Technical requirements

(a) Technical conditions for installation of a facility

A distributer shall install facilities that meet all of the following requirements:

(1) The connected load of the facility is lower or equal to the connection size with which the

consumption location is connected to the electricity network. The connected load of the

facility, determined by the nominal power of the converter or in accordance with the wind

turbine and the specifications of the manufacturer, does not exceed 15 KW for a domestic

consumer and 50 KW for any other consumer;

(2) The facility meets the relevant requirements of the Electricity Law, 1954, and its regulations;

(3) The facility’s current converter meets Israeli Standard IS 4777 on all its sections, or in case of

a wind turbine, the relevant standards of the Israeli Standards Institute, including IS 61400

sections 1, 2, 11, 12.01, 21;

(4) The protection system against frequency deviations shall be installed in accordance with the

standard determined by a competent entity and subject to obtaining a legal operating

permit.


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179. Installation of the facility

(a) Installation

(1) A facility shall be installed by an installer holding an appropriate electricity license for the

facility’s nominal current, in accordance with the specifications of the Electricity Law, 154

and its regulation.

(2) The integration of the facility into the distribution network by the distributer shall be made

by installing two meters at the consumption location registered to the consumer, as

specified in this section – a production meter installed at the converter’s outgoing point on

the AC side, measuring the amount of electricity produced by the facility (hereinafter: “the

production meter”), and a consumption meter installed at the connection point of the

consumer’s private facility to the electricity network, simultaneously measuring the amount

of electricity consumed from the network and the amount of electricity transferred to the

network (hereinafter: “the consumption meter”).

(b) Installation at the consumption location registered to the consumer

A meter shall be installed at the consumption location registered to the consumer.


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180. Connecting two facilities (photo-voltaic and wind turbine) or connecting two parts of a

photo-voltaic system in a single consumption location

(a) Conditions for dividing the facility

At the request of a registered consumer, and subject to the requirements specified in this

section, the distributer shall connect up to two parts of a photo-voltaic or wind turbine system

in a single consumption location, provided that the all of the following conditions are met at the

consumption location:

(1) The total connected load of both parts of the facility at the consumption location does not

exceed 15 KW for a domestic consumer and 50 KW for any other consumer;

(2) Each device is fitted with a separate current converter meeting the requirements specified

in standard 178;

(3) To clarify, for each facility the recognized rate shall be as of the date of providing the

guarantee to connect the facility to the network.

(b) Installing meters

The distributer shall install a separate production meter for each facility connected to the

consumption meter. The consumer rate for the installation of each meter shall be in the amount

specified in standard 177 (e) (1) (b).


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181. Examination of the facility and its integration into the electricity network

(a) Notification regarding the installation of the facility

If the consumer installs the facility at the consumption location registered to him and pays for

the examination and connection of the facility, as specified in sub-close 177 (e) (1) within 180

days from the date of receiving the guarantee specified in close 177 (d), he shall inform the

distributer about it before the end of aforementioned period.

(b) Setting a date for the examination of the facility

if the consumer informs the distributer about making the payment and installing the facility, as

specified in sub-close (a) above, the distributer shall coordinate an examination date with the

consumer and the examination shall be made by a certified examiner on behalf of the

distributer, in accordance with the provisions of the Electricity Law, 1954, and its regulations

(hereinafter: “the examiner”) within 21 days from the date of receiving the aforementioned

notification.

(c) Examination of the facility and its integration into the electricity network

(1) If the examiner finds that the facility does not meet the provisions of these standards, he

shall submit a faults report to the consumer.

(2) The consumer shall repair the faults and order a second examination of the facility by the

distributer, to be conducted following payment as specified in line 7 of Table of Rates 3.4-1

by the consumer, within 14 work days.

(3) If the examiner finds that the facility is properly installed and can be connected to the

consumption location and the electricity network, he shall inform the consumer in writing,

and the consumer shall transfer the results of the facility examination and any other

document required to obtain an energy transmission permit to the electricity manager.

(4) If the electricity manager authorizes the operation of the facility in accordance with the

Electricity Law, as specified in sub-close (3) above, the distributer shall install the meter

system in accordance with the plan specified in sub-close 177 (b) (8), and integrate the

system into the electricity network within 7 work days from the date of conducting the

examination. Any additional examinations, if required, shall cost as specified in sub-close (2)

above, subject to the consumer providing a “form 4”, as specified in close (d) below.

(5) To dispel any doubt, the installation of meters and integration of the facility into the

network shall only be made by the distributer.

(6) To clarify, the examination of the facility shall be counted in the number of days regarding

the distributer’s guarantee to connect the facility into the network. If the distributer does


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not meet the schedules specified in this standard regarding the examination of the facility,

the deviations shall not be counted in the number of days.

(7) To clarify, not more than a single domestic facility with a capacity of up to 15 KW fed by a

single existing consumption meter, or a single facility with a capacity of up to 50 KW fed by a

single existing consumption meter, shall be installed in the same premises.

(d) Permit for transferring energy to the network

The consumer shall bear the responsibility to obtain an operating permit from the Ministry of

National Infrastructures, Energy and Water Resources for transferring energy to the network,

and, additionally, an authorization (“form 4”) from the competent authority, as defined in close

157a of the Planning and Building Law, 1965. Energy may only be transferred from the facility to

the network subject to obtaining the aforementioned authorizations and permits.


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182. Maintenance of the facility

(a) Periodical examinations

The consumer shall conduct periodical examinations of the facility as required by law.

(b) Conducting changes to the facility

(1) The consumer shall not make any changes to the connected load of the facility and the

protections installed in it without prior written authorization from the distributer.

(2) If the consumer makes any changes to the connected load of the facility and the protections

installed in it, in contradiction of the provisions of sub-close (1) above, the distributer shall

not be liable under the arrangement specified in this section.

(3) If any change is made to the facility benefiting the consumer, the provisions of standards 16

and 24 shall apply.


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183. Data management and reporting duty

(a) Data management

(1) The holder of a transmission license shall be responsible to the management of quantities

for photo-voltaic and/or wind turbine facilities, as defined in this section of the Book of

Standards, and shall inform the different distributers about the exhaustion of the quantities

in accordance with the provisions of the Authority decision.

(2) The holder of a transmission license shall receive the request data of each consumer from

the distributer in real time, including data regarding conformity or violation of the

prerequisites. The holder of a transmission license shall record hourly the requests of the

distributer and shall issue him a receipt upon receiving the requests.

(3) Upon submission of a request by a consumer to the distributor for connection of a facility to

the network, and after confirming that the consumer meets the prerequisites, the

distributer shall apply to the holder of a transmission license in order to receive information

regarding the number of facilities approved for installation.

(4) The holder of a transmission license shall confirm the reception of the distributer’s request

on the day of submission of the request. A reply to the distributer regarding the available

quantity and the relevant rate shall be given within 5 work days following the day of

submission of the request by the distributer.

(5) At the end of each work day, the distributer shall submit information regarding the number

of requests submitted that day to the holder of a transmission license, including requests

that were not yet reviewed.

(6) Upon receiving requests in the amount of 70% - 90% of the quota approved in the relevant

Authority decision, the holder of a transmission license shall publish an announcement by

digital media to distributers and to the public regarding the number of requests approved as

of the date of the announcement.

(7) The distributer shall not receive new requests after the date of the aforementioned

announcement.

(8) The distributer shall continue to handle requests submitted prior to the aforementioned

announcement, and shall transfer request that meet the prerequisites to the holder of a

transmission license. The holder of a transmission license shall authorize the distributer to

commit to the valid rate as of the date of the aforementioned announcement regarding

these requests. Any remaining available quota following the completion of the

aforementioned procedure shall be transferred to future arrangements, if any are made.

(b) Reporting duty


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(1) The distributer shall submit a report to the holder of a transmission license regarding the

submission of a request or the closing of a request or any other status for the integration of

a facility within one work day from the time of its update.

(2) The holder of a transmission license shall regularly inform distributers, and not less than

once per three days, about the accumulated number of installations or about any change to

a given national rate.

(c) Reporting to the authority

(1) Once per week, the holder of a transmission license shall report to the authority about all

the facilities connected to the network, organized by distributer, in accordance with format

required by the professional team at the Authority.

(2) Once per quarter, the distributer shall submit a detailed report to the Authority regarding

the facilities connected to the transmission network under the jurisdiction of his license, in

accordance with format required by the professional team at the Authority.

(3) Once per quarter, the distributer shall report to the Authority about any rejections of

requests to install systems based on redundant investments in the network.

(d) Duty to report to the public

(1) Once per week, the holder of a transmission license shall update his internet site with the

amount of requests registered on the site, the amount of requests summoned to the offices

of the distributer, the amount of requests accepted, the amount of requests rejected and

the amount of requests in process. In addition, once per month, the holder of a transmission

license shall update his internet site with the actual number of connected facilities and their

capacity.

(2) The distributor and the holder of a transmission license shall inform consumers by digital

media about the exhaustion of 70% - 90% of the amount of request for a specific rate and

the change to the rate in accordance with the plan.

(3) Additionally, the distributor and the holder of a transmission license shall inform the public

about any other data as required by the professional team at the Authority.


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Section D: Solar Electricity Production for Holders of Production Licenses with

Facilities Connected to the Distribution Network

In this section:

“Land division” – a land area or a number of continuous land areas with shared borders, owned by or

chartered to or in possession of a single person;

“Producer” – a holder of a license for the production of electricity by solar technology connected to the

distribution network;

“Distributer” – a holder of a distribution license, as defined by the Electricity Sector Law, 1996, including

a “distributer” as defined in the decision of the Authority regarding an outline for the organization of the

operation of historical distributers, and in accordance with the provisions of the decision (Authority

decision no. 1 of meeting 272 on 1/9/2009);

“Photo-voltaic system” – a system for the production of electricity using photo-voltaic technology,

including, among others, photo-voltaic receptors, a metering system and direct to alternate current

convertor, with a connected load that does not exceed the capacity of the connection of the distribution

line and is not lower than 51 KW;

“Solar technology system” – a system for the production of electricity using solar energy that does not

use any fossil fuels with a connected load that does not exceed the capacity of the connection of the

distribution line and is not lower than 51 KW;

“Facility” – for the purpose of this standard – a system for the production of electricity using photo-

voltaic technology or solar technology, legally licensed and operated;

184. Connecting a facility to the distribution network

(a) Connecting a facility to the electricity network

(1) The distributer shall connect a licensed facility located on a land division for which a Rate

Authorization has been obtain in accordance with this standard.

(2) The connection of the facility to the network by the distributer shall be made in accordance

with the provisions of section C (low voltage connection) and section D (high voltage

connection) of chapter C of the Book of Standards.

(3) In any case, the distributer shall not connect more than a single facility in a land division.


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185. Payment arrangements

(a) Consumer rate for electricity produced in the facility – general

(1) The distributer shall be required to purchase all the energy produced by any producer under

this arrangement.

(2) For the connection of the facility, the distributer shall charge the consumer the rate

specified in section C (low voltage connection) and section D (high voltage connection) of

chapter C of the Book of Standards.

(3) For acquisition of energy, the distributer shall pay the consumer the rate specified in Table

of Rates 6.7-7 in accordance with the linkage mechanism specified therein.

(4) The rate shall be paid in accordance with the provisions of the law, including the tax laws

applicable in the State of Israel from time to time.

(5) The aforementioned rate shall be paid throughout the period of the producer’s permanent

license and Rate Authorization.

(b) Permanent and conditional Rate Authorization

(1) Close to the date of financial closure, and at the request of a holder of a conditional license,

a holder of a conditional license meeting all the milestones defined in the conditional license

shall be given a conditional Rate Authorization. The conditional Rate Authorization shall be

given to the producer in accordance with the relevant quantity dependent rate for that date

in accordance with the Tables of Rates, and shall remain valid for 90 days or until the

financial closure, whichever is earlier.

(2) If the producer reaches financial closure within 90 days, the conditional rate shall become

permanent, provided that the holder of the conditional meets all the milestones defined in

his conditional license and has receives a permanent production license.

(3) If the producer does not reach financial closure within 90 days from the date of obtaining

the conditional rate, the conditional Rate Authorization shall expire.

(4) The permanent Rate Authorization shall be give at the date of commercial operation for a

period of 20 years.

(5) If the conditional license expires, the applicant may not submit a new Rate Authorization

request for the same facility for 12 months from the date of expiration of the Rate

Authorization.

(6) If the request for a conditional Rate Authorization is submitted after Rate Authorizations has

been given for the annual approval quantity, in accordance with the Tables of Rates, a


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reduced conditional Rate Authorization shall be given in accordance with rates in the rate

outline, on account of the next quantity according to the Tables of Rates.

(7) If the request for a conditional Rate Authorization for a specific year is submitted after Rate

Authorizations has been given for the annual approval quantity of the following year, the

conditional Rate Authorization shall be given in accordance with the rate outline for the

second year after the date of the request, and so on until the maximum quantity is reached.

(c) Rate settlement between the distributer and the holder of a transmission license

(1) In every billing period, the distributer shall submit reports to the holder of a distribution

license, specifying the connected quantity and the quantity of kWh produced in facilities

within his distribution zone. The holder of a transmission license shall pay the relevant

holder of a distribution license for the costs derived from payment for solar energy

production.

(2) The above shall also apply, with the required changes, to settlement between a distributer

whose distribution network is connected to the distribution network of another distributer

and the other distributer.

(3) Once per quarter, the holder of a transmission license shall submit to the Authority a report

and any other information required by the Authority regarding solar facilities for which he

pays the rate.


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Section E: Solar Electricity Production for Holders of Production Licenses with

Facilities Connected to the Transmission Network

In this section:

“Land division” – a land area or a number of continuous land areas with shared borders, owned by or

chartered to or in possession of a single person, including persons with a renewable contract with the

Israel Land Authority, such as Kibbutzim and agricultural settlements;

“Producer” – a holder of a license for the production of electricity by solar technology connected to the

transmission network;

“Essential Service Provider” – as defined in the Electricity Sector Law, 1996;

“Solar technology system” – a system for the production of electricity using solar energy that does not

use any fossil fuels beyond the specifications of the Electricity Sector Rules (transactions with an

Essential Service Provider), 2000, connected to the transmission network;

“Facility” – for the purpose of this standard – a system for the production of electricity using solar

technology, legally licensed and operated;

“Fossil kWh” – kWh produced in a solar facility and normatively considered as electricity production

using fossil fuels, in accordance with the standards;

“Pure solar kWh” – the difference between the total number of kWh produced in the station and the

fossil kWh.

186. Integration of a facility into the network by an Essential Service Provider


(1) The connection of a facility to the network shall be conducted in accordance with the

provisions of the standards and the decisions of the Authority.

(2) The actual capacity of the facility shall be determined by the Essential Service Provider

during the acceptance examinations and in accordance with the provisions of the

conditional license, and the rate shall be calculate according to it.

(3) The Essential Service Provider shall not connect more than a single facility in a land division

to the transmission network.

(4) The Essential Service Provider shall specify in the feasibility survey if a connection point to

the network exists, including a planned point, through which the planned facility can be

connected to the network.


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(5) If production facilities are installed with a relevant arrangement for high or low voltage in

the same land division connected to the transmission network, the network connection for

these facilities shall be made through the transmission network.


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187. Meter installation and reading

(a) Installing electricity meters

(1) The Essential Service Provider shall install a half-hour meter at the terminals of the

production facility’s generator (hereinafter: “gross meter”) for the purpose of measuring

the amount of kWh produced in the facility and calculating the amount of fossil kWh

produced in the facility. For this service, the producer shall pay the Essential Service

Provider for the cost of meter installation, as specified in line 9 (removing and installing a

meter) of Table of Rates 5.4-2.

(2) The Essential Service Provider install a half-hour meter at the point of connection to the

network (hereinafter: “net meter”) for the purpose of measuring the amount of kWh

transferred to the network for which a solar rate is paid. For this service, the producer shall

pay the Essential Service Provider for the cost of meter installation, as specified in line 9

(removing and installing a meter) of Table of Rates 5.4-2.

(b) Measuring the amount of fossil fuel

(1) The Essential Service Provider shall be responsible to measure the amount and type of fossil

fuel used in the solar facility.

(2) The annual consumed amount and type of fossil fuel shall be measured on the basis of half-

hours and reported by the producer to the System Manager once per day.


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188. Payment arrangements and reporting to the Authority

(a) Payment arrangements

(1) The Essential Service Provider shall be required to purchase all the energy transferred to the

network by any producer holding a solar technology license connected to the transmission

network.

(2) The Essential Service Provider shall pay the producer for acquisition of energy in accordance

with the rate specified in Tables of Rates 6.7-1 to 6.7-4 and 6.7-9 and in accordance with the

Rate Authorization presented to him by the producer, including the linkage mechanisms

specified therein, and in accordance with the production net meter and subject to the Rate

Authorization.


applicable in the State of Israel from time to time,

(4) The aforementioned rate shall be paid throughout the period of the authorization, provided

that the producer holds a valid permanent license.

(5) The Essential Service Provider shall charge the producer in accordance with the rate

specified in the standards, including the standard relating to ultra-high voltage connections,

for the connection of the facility to the network and for consumed electricity.

(b) Duty of report by the Essential Service Provider

Once per quarter, the holder of a transmission license shall submit a report to the Authority,

along with any other information required by it, regarding electricity production systems using

solar technology.


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189. Use of fossil fuels

(a) Calculating kWh normatively ascribed to fossil fuels for the purpose of the rate

(1) The annual amount of kWh ascribed to the use of fossil fuel (amount of fossil fuel kWh) shall

be determined for the purpose of the rate in accordance with Tables of Rates 7.6-3 and 6.7-

4.

(2) The percentage of fossil fuel shall be calculated by the Essential Service Provider for the

purpose of the rate by the ratio between the amount of kWh ascribed to fossil fuel, as

specified above, and the amount of electricity measured at the production gross meter.

(b) The rate

(1) Close to the date of issuing the bill, the Essential Service Provider shall calculate the

percentage of fossil fuel out of the total amount of electricity measured at the terminals of

the generator (production gross meter) for the billing period.

(2) The Essential Service Provider shall pay for electricity transferred to the network from a

facility whose use of fossil fuels does not exceed 3% in accordance with Table of Rates 6.7-1.

(3) The Essential Service Provider shall pay for electricity transferred to the network from a

facility whose use of fossil fuels exceeds 3% in accordance with Table of Rates 6.7-2.

(c) Settlement for the use of fossil fuels

Once per year, the Essential Service Provider shall conduct a general settlement in which the

fossil fuel part of the total annual quantity of electricity produced in the facility , as measured at

the gross meter, shall be calculated, as well as the rate as if the producer was to be credited for

each kWh transferred to the network that year. If a difference is found between the total

payments between the producer and the Essential Service Provider, the parties shall settle the

difference with added relevant linkages.


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Section F: Wind Energy Production by Wind Farms with a Capacity Exceeding 50

KW

In this section:

“Connected load” – the sum of the rated outputs in the terminals of each generator in the turbine farm

subject of the license request;

“Producer” – a holder of a license for the production of electricity by wind farm energy with a connected

load of over 50 KW;

“Essential Service Provider” - as defined in the Electricity Sector Law, 1996;

“Wind turbine system” – a system for the production of electricity using wind energy, including, among

others, a tower base, blades, metering system and electrical converter, with no limit as to capacities of

heights;

“Wind farm” – a cluster of wind turbines, including, among others, an electricity collection array from

each turbine in the cluster, connected to the network through a single connection point and with a

cumulative connected load of at least 50 MW;

“Facility” – for the purpose of this standard – a wind farm legally licensed and operated;



(1) The connection of a facility to the network by the Essential Service Provider shall be

conducted in accordance with the provisions of the standards and the decisions of the

Authority.

(2) The Essential Service Provider shall allocate a single connection to the network per facility,

as defined in this standard.

(3) The connection to the network shall be made in accordance with the connected load of the

wind farm, established by the Essential Service Provider during the acceptance examinations

and in accordance with the specification of the conditional license.

(a) The connection of a facility to the distribution network by the distributer shall be made

in accordance with the provisions of section C (low voltage connection) and section D

(high voltage connection) of chapter C of the Book of Standards, or, if necessary, chapter

G (works on account of others).

(b) The connection of a facility to the transmission network by an Essential Service Provider

holding a transmission license shall be made in accordance with the provisions of the

standard “ultra-high voltage connection”.


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(c) The Essential Service Provider shall act with a producer, in accordance with the

instructions of the professional team at the Authority, wherever a unification of

adjacent facilities in the distribution network is required in the opinion of the

professional team in accordance with the principles of cost reduction in the distribution

and transmission networks. In this case, the producer shall be required to find

alternatives to allow the infrastructure unification of adjacent facilities and their

connection to the transmission network.


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(1) The Essential Service Provider install a half-hour meter at the point of connection to the

network for the purpose of measuring the amount of kWh transferred to the network. For

this service, the producer shall pay the Essential Service Provider for the cost of meter

installation, as specified in line 9 (removing and installing a meter) of Table of Rates 5.4-2.


448


(a) Producer rate for electricity produced in the facility – general

(1) The Essential Service Provider to which the facility is connected shall be required to

purchase all the energy produced by any producer.

(2) For the connection of the facility, the Essential Service Provider shall charge the producer

the rate specified in chapter C of the Book of Standards, in accordance with the type of the

connection to the network.

(3) For acquisition of energy, the Essential Service Provider shall pay the producer the rate

specified in Table of Rates 6.7-10 (hereinafter: “the rate”) in accordance with the linkage

mechanism specified therein and the Rate Authorization provided by the Authority.



(5) The aforementioned rate shall be paid throughout the period of the producer’s Rate

Authorization, provided that the producer holds a valid permanent license.

(b) Settlement between the distributer and the holder of a transmission license

(1) Every month, the distributer shall submit reports to the Essential Service Provider holding a

transmission license, specifying the connected quantity and the quantity of kWh produced

in facilities within his distribution zone. The holder of a transmission license shall pay the

relevant distributer the rate for energy production from wind energy minus the cost of

energy acquisition by the distributer.




(c) Duty of report by the Essential Service Provider

Once per quarter, the holder of a transmission license shall submit a report to the Authority,

along with any other information required by it, regarding electricity producing facilities using

wind energy for which he pays the rate.


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193. Connecting a wind farm and a solar facility on the same land division

In this standard:

“Producer” - a holder of a license for the production of electricity by wind farm energy with a

connected load of over 50 KW, and/or a holder of a license for the production of electricity by solar

energy with a connected load of over 50 KW;

“Facility” – for the purpose of this standard – a wind farm legally licensed and operated;

“Solar facility” – a system for the production of electricity using solar energy legally licensed and

operated.

(a) Conditions for the connection of two facilities on the same land division

At the request of the producer, the Essential Service Provider shall connect two facilities (a wind

farm and a solar facility) located on the same land division, provided that the following

conditions are met:

(1) The producer holds an electricity production license for each facility separately;

(2) A connection survey has been conducted for the connection of both facilities at the

aforementioned connection point;

(3) The connection to the network of the Essential Service Provider of both facilities shall be

made through a single connection point.

(b) Meter installation

The Essential Service Provider shall install a separate production meter for each facility. The

producer shall pay the Essential Service Provider for each meter the cost of installation specified

in line 9 (removing and installing a meter) of Table of Rates 5.4-2.


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Section G: Biogas Energy Production by Anaerobic Digestion Facilities Connected

to the Distribution Network

In this section:

“Producer” – a holder of a license for the production of electricity in an anaerobic digestion facility

connected to the distribution network;

“Essential Service Provider” - as defined in the Electricity Sector Law, 1996;

“Anaerobic digestion process” – a biologic process conducted under controlled conditions of absence of

oxygen that produces biogas from organic waste of different sources, including municipal waste, organic

agricultural waste, organic industrial waste and processed waste;

“Facility” – for the purpose of this standard – a facility for the production of electricity from biogas

produced through a process of anaerobic digestion, authorized by the Ministry of Environmental

Protection and legally licensed and operated.



(1) The distributer shall connect a licensed facility in accordance with the provisions of this

standard.

(2) The connection of a facility to the network by the distributer shall be made in accordance

with the provisions of section C (low voltage connection) and section D (high voltage

connection) of chapter C of the Book of Standards.


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(a) Producer rate for electricity produced in the facility – general

(1) The distributer shall be required to purchase all the energy produced by the producer

holding a license for the production of electricity from biogas in an anaerobic digestion

facility connected to the distribution network, as specified in close 5b in decision 3 of

meeting 344 on 25/7/2011.

(2) For the connection of the facility, the distributer shall charge the producer the rate specified

in section C (low voltage connection) and section D (high voltage connection) of chapter C of

the Book of Standards.

(3) For acquisition of energy, the distributer shall pay the producer the rate specified in Table of

Rates 6.7-8 in accordance with the linkage mechanism specified therein and the Rate

Authorization.




Authorization, provided that the producer holds a valid permanent license.

(b) Settlement between the distributer and the holder of a transmission license

(1) Every month, the distributer shall submit reports to the Essential Service Provider holding a

transmission license, specifying the connected quantity and the quantity of kWh produced

in facilities within his distribution zone. The holder of a transmission license shall pay the

relevant distributer for the costs derived from payments for the production of electricity

from biogas.




(3) Once per quarter, the holder of a transmission license shall submit a report to the Authority,

along with any other information required by it, regarding electricity producing facilities

using biogas for which he pays the rate.


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Section H: Distributed Electricity Production from Renewable Energy Using Net

Meters

In this section:

“Facility” – for the purpose of this standard – a system for the production of electricity from renewable

energy in accordance with the definitions in the rules and regulations of the electricity sector, and with a

connected load that does not exceed 5 MW;

For the purpose of this definition, “connected load” – the accumulated capacity of the units

synchronized with the network, and according to the manufacturer’s specifications and up to 5 MW;

Distributer” – for the purpose of this standard – a holder of a distribution license, including a historical

distributer, as defined in Authority decision 272 of 11/8/2009 and subject to its terms;

“Consumer” – any person who purchases electricity or services from a license holder, whether he is

connected to the low voltage, high voltage or extra-high voltage;

“Facility integration” – connection of a facility to a private electricity network fed by the public network;

“Suitable size connection” – a permanent connection size suitable for the facility size at the

consumption location;

“Consumption location” – as specified in chapter A of the Book of Standards;

“Credit” – the accrued sum in NIS for the billing period credited to the consumer and calculated in

accordance with the quantity of energy transferred to the network in each demand hour cluster, based

on a reading of the bi-directional meter, multiplied by the TLR due by the consumer for the demand

hour cluster;

“Summary report” – a summary of the electricity bills of a single consumer (whether a person or a

corporation) registered in a number of consumption locations in the same distribution zone.

196. Integration of a facility using net meter by the distributer

(a) Integrating a facility by the distributer

(1) At the request of a registered consumer and in accordance with the provisions of this

section, the distributer shall integrate a facility at the consumption location registered to

the consumer, provided that the connection request is submitted before 31/12/2014 or that

the total connected load of all the facilities in the electricity market does not exceed 400

MW, by a division of 200 MW in 2013 and additional 200 MW in 2014, whichever is earlier.

(2) The distributer shall sign an agreement with the consumer allocating him to the

arrangement specified in this section.


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(3) The Essential Service Provider shall not transfer a consumption location operating under the

arrangement specified in this section to any other arrangement.


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197. Consumer payment arrangements

(a) Consumer rate and settlement for electricity produced in the facility – general

(1) The distributer shall charge the consumer a rate for electricity consumption at the

consumption location as specified in chapter B (electricity consumption), section B (bills and

payments) of the Book of Standards. In addition to this rate, the distributer shall charge the

consumer for the additional payment specified in Table of Rates 5.4-1 (addition to the fixed

payment of a consumer with a facility).

(2) The distributer shall charge the consumer for the costs of backup and balancing and transfer

it to the holder of a transmission license, in accordance with the production meter reading

and the rates specified in Table of Rates 5.8-1 (payment for the cost of receiving renewable

energy into the electricity network under a net meter arrangement). In addition, the

distributer shall charge the consumer the infrastructure service rates in accordance with the

quantity of energy transferred to the network in each demand hour cluster based on a

reading of the bi-directional meter and as specified in Tables of Rates 7.3-1, 7.3-2 and 7.6-1,

depending on the consumer’s connection voltage to the network.

(3) Notwithstanding the aforementioned in sub-close (1) above, at the end of the billing period,

the distributer shall deduct the credit from the electricity consumption rate at the

consumption location and deduct the costs of backup, balancing and use of the network, as

required.

(4) If, after the deduction aforementioned in sub-close (3) above, the consumer is left with

credit for electricity produced in his facility, the distributer shall transfer the remaining

credit to the consumer’s electricity bill for the following period, or, at the request of the

consumer, shall transfer the remaining credit as part of a summary report.

(5) Credit that is not used during the billing period shall be used within two years. Otherwise,

the distributer shall nullify any credit accrued during the aforementioned billing period.

(6) The consumer shall not be entitled to receive any other rate beyond for the credit, including

a rate for the reduction of polluters or any other rate for renewable energies.

(7) The aforementioned settlement between the distributer and the consumer shall be made in

accordance with the law, including the tax laws applicable in the State of Israel from time to

time.

(8) The term of the contract between the distributor and the consumer shall be for an unlimited

time.

(9) The distributer shall act in accordance with the arrangements established by the Authority

from time to time.


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(b) Credit transfer between consumers

(1) If the consumer is left with credit for electricity produced in his facility, he may transfer the

remaining credit to another consumer (hereinafter: “the transferring consumer”).

(2) A request for the transfer of credit to another consumer shall be made by a written prior

notification by the transferring consumer to the distributer and shall be implemented in the

following bill, after receiving the notification at the offices of the distributor.

(3) Credit shall be calculated in accordance with the quantity of energy transferred to the other

consumer multiplied by the production cost and minus the rates for backup and balancing.

(4) For the purpose of transferring credit, as aforementioned in this close, the transferring

consumer shall apply to the Authority in order to obtain a license.

(c) Settlement for a facility when changing consumers

(1) The change of consumers who participate in the arrangement specified in this section shall

be made in accordance with standard 19 (changing consumers), and regarding the

settlement for the facility, shall require the signature of the leaving consumer constituting

the end of the agreement with the leaving consumer. Following the change of consumers

and signing of the new consumer on the agreement regarding the payment arrangement

with the distributer, the distributer shall continue the deduction mechanism for electricity

produced in the facility with the new consumer. The signing of the agreement with the

distributer by the new consumer shall be a condition for continuing the deduction

arrangement for electricity produced in the facility.


456

198. Submitting a request to the distributer for integration of a facility into the electricity

network


Consumers interested in information regarding a possible connection of a facility shall apply to

the distributer in the relevant area, verbally or in writing, and the distributer shall deliver all the

relevant information to him within 7 work days from the date of the application. The distributer

shall also display all the information relevant to his consumers on his internet site, as specified

in this standard.

(a1) Registering on the internet site before submitting a request

(1) A holder of a transmission license shall allow consumers who are interest in submitting a

request for connection of a facility to register on a dedicated internet site before submitting

the request for connection of the facility to the network, and shall promptly transfer the

requests to the holder of a distribution license or to historical distributers in whose area the

consumers are registered as aforementioned.

(2) An Essential Service Provider holding a distribution license, including a historical distributer,

shall summon the consumer to his offices for the purpose of submitting a request for

connection of a facility to the network, not later than 30 work days from the date

registration on the dedicated internet site of the holder of the transmission license.


A request for connection of a facility to the network shall be submitted by consumers to the

distributer with the following documents and information as a prerequisite for the approval of

the request by the distributer:

(1) Details of the consumer (name, address, phone number, consumer/meter/contract number,

etc.);

(2) Type of facility (PV or wind turbine facility) planned;

(3) Planned connected load;

(4) Estimated installation date;

(5) A copy of the building permit or a permit for limited work provided by the relevant planning

authority for the installation of the facility at the consumption location registered to the

consumer; to clarify, the building plan is an integral part of the building permit. If the

consumer claims he is not required to provide the aforementioned permit, he shall attach to

his request a suitable written authorization signed by the authorized persons in the relevant

planning authority;


457

(6) Proof of an existing permanent connection and a suitable connection size for the size of the

facility, as specified in standard 200 (a) (1) below. To clarify, opening a request to increase

the size of a connection shall not be enough to prove conformity with this prerequisite, but

the consumer shall be required to prove the actual existence of a suitable connection for the

size of the facility;

(7) A facility with a capacity exceeding 630 kVA shall require the presentation of a feasibility

survey by the distributer.

(8) An electrical plan conducted by a certified electrician holding a suitable license for the

integration of the facility at the consumption location to the electricity network of the

Essential Service Provider. The aforementioned plan shall include the proposed location of

the electricity meters, so that:

(a) The facility’s bi-directional consumption meter shall be installed at the point where the

consumer’s existing consumption meter is located and in its stead;

(b) The production meter shall be installed in accordance with one of the following

alternatives:

(1) At the closest possible location to the point where the consumption meter is

installed allowing the Essential Service Provider reasonable access to read, operate

and maintain the meter;

(2) If the production meter cannot be installed at the location specified in sub-close (1)

above for technical reasons, it shall be installed at a location suggested by the

consumer, provided that the consumer installs duct piping between the production

meter and the consumption meter to be used by the distributer for the threading of

a command line to transfer data from the production meter to the consumption

meter;

(3) If the aforementioned command line cannot be installed for technical reasons, or at

the request of the consumer, the distributer shall install a communication line to

allow him to install a remote reading meter as a production meter at a suitable

location for the consumer.

(c) Additional details and amendment to the plan of integration into the network

(1) In order to reply to the aforementioned request of integration of a facility, the distributer

may request additional details from the consumer required for the connection of the facility

or the amendment of the facility’s connection plan. The consumer shall promptly provide

the requested additional information in accordance with the comments of the distributer or

inform the distributer that he is unable to provide the requested information.


458

(2) If the distributer requires additional details or the amendment of the facility’s integration

plan from the consumer, as aforementioned, the days required by the consumer in order to

reply to the aforementioned request shall not count towards the number of days required

for a reply by the distributer to a facility connection request, as specified in sub-close (d)

below.

(d) Replying to a request to integer a facility into the network

(1) The distributer shall reply to the request of a consumer to integrate a facility within 21 days

from the date of receiving the request, as follows:

(a) If the consumer does not meet the prerequisite and/or the request of the distributer for

additional details, the distributer shall reject his request to integrate the facility,

specifying the reasons for the rejection;

(b) If the consumer meets the prerequisite and the request of the distributer for additional

details, the distributer shall provide the consumer with a principle guarantee to connect

the facility in accordance with the plan attached to the request, provided that the

consumer meets the technical requirements specified in standard 201. In his reply, the

distributer shall specify the schedules for the integration of the facility into the

electricity network and the credit to which the consumer is entitled to regarding the

relevant quota.

(c) If the distributer does not reply to the consumer’s request within the time specified

above, he shall compensate the consumer for the amount specified in Table of Rates

12.1-1 (payments for violation of standards).

(2) The distributer’s guarantee shall be provided in accordance with the approved size of the

facility as of the day of confirming the consumer’s request to connect the facility to the

network by the distributer.

(3) The guarantee for the connection of a facility of up to 630 kW to the network shall remain

valid for 180 days from the day of providing it to the consumer, and 365 days for a facility of

over 630 kW and up to 5 MW. If the aforementioned 180 days or 365 days expire and the

facility is not connected yet connected to the network, for any reason, the guarantee shall

expire and the distributer shall not connect the facility to the network.

(4) Notwithstanding the aforementioned in sub-close (3) above, the distributer shall extend the

connection guarantee by 90 days if instructed to do so by the head of consumer department

at the Authority. In order to obtain the aforementioned authorization the connection

applicant shall submit a request to the head of the consumer department at the Authority in

accordance with the procedure specified on the Authority’s site.

(e) Rate for examination of the facility and its integration into the electricity network


459

(1) The distributer shall attach to its reply to the request for the integration of the facility a bill

to paid as a condition for the examination and connection of the facility, as follows:

(a) For the examination of the facility, the consumer shall pay in accordance with line 7 of

Table of Rates 4.3-1 (rate for examination/re-examination of a facility);

(b) For changing the consumption meter and installation of a bi-directional TLR meter, the

consumer shall pay in accordance with line 9 of Table of Rates 5.4-2 (removing and

installing a meter) for each meter;

(c) For installation of a communication line, as specified in close (b) (7) (3) above, the

consumer shall pay in accordance with Table of Rates 4.5-2 (installation of a

communication line to a production meter).

(2) Close 24 (c) regarding payment for services not yet rendered shall apply to the payment in

accordance with this standard.

(f) Changing the request

The consumer may change the request of the plan for the connection of the facility before the

facility passes the examination of the distributer, provided that the change are submitted in

accordance with the procedure specified in this standard.

(g) Consumer objections regarding the rejection of the request

Consumers may submit their objections to the distributer’s decision to the distributer in writing.

(h) Distributer response to consumer objections

If a consumer submits his objections to the distributer in writing, the written response of the

distributer shall be delivered to the consumer and the Authority in accordance with standard 33

(Handling written and phone complaints by consumers).


460

199. Technical requirements

(a) Technical conditions for installation of a facility

A distributer shall install facilities that meet all of the following requirements:

(1) The connected load of the facility is lower or equal to the connection size with which the

consumption location is connected to the electricity network. The connected load of the

facility, determined by the aggregated capacity of the facility and in accordance with the

specifications of the manufacturer;

(2) The consumer shall integrate a facility whose capacity does not exceed 5 MW per

consumption location;

(3) Any facility exceeding 50 KW shall require acceptance examinations by the Essential Service

Provider as a condition for its integration into the network;

(4) The facility meets the relevant requirements of the Electricity Law, 1954, and its regulations;

(5) The facility’s equipment and all its components meet a legally recognized Israeli Standard;

(6) The protection system against frequency deviations shall be installed in accordance with the

standard determined by a competent entity and subject to obtaining a legal operating

permit.


461

200. Installation of the facility

(a) Installation

(1) A facility shall be installed by an installer holding an appropriate electricity license for the

facility’s nominal current, in accordance with the specifications of the Electricity Law, 154

and its regulation.

(2) The integration of the facility into the distribution network by the distributer shall be made

by installing a bi-directional TLR meter to measure the amount of credit to which the

consumer is entitled, and a production meter simultaneously measuring the amount of

electricity produced in the facility.

(b) Installation at the consumption location registered to the consumer

A meter shall be installed at the consumption location registered to the consumer.


462

201. Examination of the facility and its integration into the electricity network

(a) Notification regarding the installation of the facility

If the consumer installs the facility at the consumption location registered to him and pays for

the examination and connection of the facility, as specified in sub-close 198 (e) (1) within 180

days or 365 days from the date of receiving the guarantee specified in close 198 (d), he shall

inform the distributer about it before the end of aforementioned period.

(b) Setting a date for the examination of the facility

if the consumer informs the distributer about making the payment and installing the facility, as

specified in sub-close (a) above, the distributer shall coordinate an examination date with the

consumer and the examination shall be made by a certified examiner on behalf of the

distributer, in accordance with the provisions of the Electricity Law, 1954, and its regulations

(hereinafter: “the examiner”) within 21 days from the date of receiving the aforementioned

notification. The examination of the facility shall be made in low voltage, high voltage or extra-

high voltage, as required.

(c) Examination of the facility and its integration into the electricity network

(1) If the examiner finds that the facility does not meet the provisions of these standards and

the Electricity Law, 1954, he shall submit a faults report to the consumer.

(2) The consumer shall repair the faults and order a second examination of the facility by the

distributer, to be conducted following payment as specified in line 7 of Table of Rates 3.4-1

by the consumer, within 14 work days.

(3) If the examiner finds that the facility is properly and legally installed and can be connected

to the consumption location and the electricity network, he shall inform the consumer in

writing, and the consumer shall transfer the results of the facility examination and any other

document required to obtain an energy transmission permit in accordance with the

Electricity Law, 1954, to the electricity manager.

(4) If the electricity manager authorizes the operation of the facility in accordance with the

Electricity Law, as specified in sub-close (3) above, and the distributer is provided with a

form 4 legally prepared by the approving authority, as defined in the Planning and Building

Law, 1965, the distributer shall install the meter system in accordance with the plan

specified in sub-close 198 (b) (8), and integrate the system into the electricity network

within 7 work days from the date of conducting the examination. Any additional

examinations, if required, shall cost as specified in sub-close (2) above.

(5) To dispel any doubt, the installation of meters and integration of the facility into the

network shall only be made by the distributer.


463

(6) To clarify, the examination of the facility shall be counted in the number of days regarding

the distributer’s guarantee to connect the facility into the network. If the distributer does

not meet the schedules specified in this standard regarding the examination of the facility,

the deviations shall not be counted in the number of days.

(d) Permit for transferring energy to the network in accordance with the Electricity Law, 1954,

form 4 (certificate of occupancy) and the Planning and Building Regulations (Authorizations to

Provide Electricity, Water and Phone Services), 1981

The consumer shall bear the responsibility to obtain an operating permit from the Ministry of

National Infrastructures, Energy and Water Resources for transferring energy to the network, as

specified in the Electricity Law, 1954, and, additionally, a form 4 (certificate of occupancy) for

the facility from the competent authority, as defined in the Planning and Building Law, 1965.


464

202. Maintenance of the facility

(a) Periodical examinations

The consumer shall conduct periodical examinations of the facility as required by law.

(b) Conducting changes to the facility

(1) The consumer shall not make any changes to the connected load of the facility and the

protections installed in it without prior written authorization from the distributer.

(2) If the consumer makes any changes to the connected load of the facility and the protections

installed in it, in contradiction of the provisions of sub-close (1) above, the distributer shall

not be liable under the arrangement specified in this section.

(3) If any change is made to the facility benefiting the consumer, the provisions of standards 16

and 24 shall apply.


465

203. Data management and reporting duty

(a) Data management

(1) The holder of a transmission license shall receive the request data of each consumer from

the distributer in real time, including data regarding conformity or violation of the

prerequisites. The holder of a transmission license shall record daily the requests of the

distributer and shall issue him a receipt upon receiving the requests.

(b) Reporting duty

(1) The distributer shall submit a report to the holder of a transmission license regarding the

submission of a request or the closing of a request or any other status for the integration of

a facility within one work day from the time of its update.

(2) The holder of a transmission license shall regularly inform distributers, and not less than

once per three days, about the accumulated number of installations or about any change to

a given national rate.

(c) Reporting to the authority

(1) Once per week, the holder of a transmission license shall report to the authority about all

the facilities connected to the network, organized by distributer, in accordance with format

required by the professional team at the Authority.

(2) Once per quarter, the distributer shall submit a detailed report to the Authority regarding

the facilities connected to the transmission network under the jurisdiction of his license, in

accordance with format required by the professional team at the Authority.

(3) Once per quarter, the distributer shall report to the Authority about any rejections of

requests to install systems based on redundant investments in the network.

(d) Duty to report to the public

(1) Once per week, the holder of a transmission license shall update his internet site with the

amount of requests registered on the site, the amount of requests summoned to the offices

of the distributer, the amount of requests accepted, the amount of requests rejected and

the amount of requests in process. In addition, once per month, the holder of a transmission

license shall update his internet site with the actual number of connected facilities and their

capacity.

(2) Additionally, the distributor and the holder of a transmission license shall inform the public

about any other data as required by the professional team at the Authority.


466

Section I: Electricity Production for Holder of Production Licenses with Vanguard

Facilities

In this section:

“Producer” – in this standard – including a holder of a conditional or permanent license to operate an

experiment field;

“Distributer” – a holder of a distribution license, as defined by the Electricity Sector Law, 1996, including

a “distributer” as defined in the decision of the Authority regarding an outline for the organization of the

operation of historical distributers, and in accordance with the provisions of the decision (Authority

decision no. 1 of meeting 272 on 1/9/2009);

“Facility” – a facility for the production of electricity from renewable energy, as define in the Electricity

Sector Regulations (Transactions with an Essential Service Provider), 2000, classified by the committee

headed by the Chief Scientist at the Ministry of National Infrastructures, Energy and Water Resources as

a vanguard facility;

“Self consumption facility” – a facility, as defined in this section, operating outside the experiment field,

that does not require a production license and is operated in accordance with the decisions of the

Authority regarding self production;

“Independent facility” – a facility requiring a license that is not installed within the experiment field;

“Experiment field” – an area connected to the electricity network through a single connection point

with a number of facilities conforming to the definition of a facility in this section.

204. Integrating a facility into the network

(a) Connecting a producer

(1) The distributer shall connect a producer located on a premises in accordance with the

provisions of this standard.

(2) The connection of the producer to the network by the distributer shall be made in

accordance with the provisions of section C (low voltage connection) and section D (high

voltage connection) of chapter C of the Book of Standards.


467



(1) The Essential Service Provider shall install a suitable meter at the point of connection to the

network for the purpose of measuring the amount of kWh transferred to the network for

which the relevant rate for an independent facility shall be paid.

(2) The Essential Service Provider shall install a suitable meter at the point of connection to the

network for the purpose of measuring the amount of kWh transferred to the network, and

the operator of the experiment field shall install a suitable meter for each facility inside the

experimental field in order to allow remote reading.

(3) In order to read the meters of the facilities inside the experiment field, the Essential Service

Provider and the operator of the experiment field shall coordinate an interface for

transferring metering data from each facility inside the experiment field, within a month

from the date of application by the operator of the experiment field.


468

206. Payment arrangements and reporting to the Authority

(a) Payment arrangements for licensed producers

(1) The Essential Service Provider shall purchase all the energy transferred to the network by

the producer.

(2) For the connection of the facility, the distributer shall charge the producer the rate specified

in section C (low voltage connection) and section D (high voltage connection) of chapter C of

the Book of Standards.

(3) For acquisition of energy, the distributer shall pay the producer in accordance with the Rate

Authorizations presented to him by the producer.

(4) Settlement between the distributer and the operator of an experiment field shall be in

accordance with the meter reading and the Rate Authorization of each facility inside the

experiment field minus losses.




Authorization.

(7) The head of the engineering department shall be the arbiter in any dispute regarding the

connection of the facility or the payment of the rate to which the producer is entitled.

(b) Payment arrangements for self consumption facilities

(1) The Essential Service Provider shall purchase all the energy transferred to the network by

the owner of a self consumption facility.

(2) The distributer shall pay the owner of a self consumption facility in accordance with the

relevant standards regarding self consumption and the valid rates.

(c) Rate settlement between the distributer and the holder of a transmission license

(1) In every billing period, the distributer shall submit reports to the holder of a distribution

license, specifying the connected quantity and the quantity of kWh produced in facilities

within his distribution zone. The holder of a transmission license shall pay the relevant

holder of a distribution license for the price differences for electricity production in

vanguard facilities.





469

(3) Once per quarter, the holder of a transmission license shall submit to the Authority a report

and any other information required by the Authority regarding vanguard facilities for which

he pays the rate.

(d) Reporting duty

(1) Once per quarter, the Essential Service Provider shall submit to the Authority a report and

any other information required by the Authority regarding vanguard facilities.


470

207. Cancellation of standards

All previous standards are hereby null and void.11

Orit Farkash-Cohen

Chairwomen

The Public Utilities Authority – Electricity

11

Publications anthology, 2005, p. 545.

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