Israel Electric Corporation (IEC)

Israel Electric Corporation (IEC) is Israel's state-owned electric utility, founded in 1923 as Palestine Electric Corporation and renamed in 1961. The State of Israel holds about 99.85% of its shares. IEC served roughly 2.99 million customers and generated NIS 26.18 billion in revenue in 2024, and S&P upgraded the company's BBB+ issuer rating outlook from Negative to Stable in November 2025.

When Was IEC Founded and Who Owns It?

IEC was incorporated in Israel in March 1923 as the Palestine Electric Corporation and renamed Israel Electric Corporation in 1961, according to the company's own financial reports. It operates as a Government Company under Israel's Government Companies Law of 1975. The state holds approximately 99.85% of its issued share capital, with the remaining stake split among roughly 120 individual shareholders.

How Big Is IEC's Operation Today?

As of the end of 2024, IEC had an installed generation capacity of 9,474 megawatts, employed about 10,055 people, and served approximately 2.987 million customers, according to Dun's 100's company profile. The company reported 2024 revenue of NIS 26.18 billion and net profit of NIS 3.36 billion. Meir Spigler serves as CEO and Doron Arbely as chairman of the board.

What Is IEC's Current Financial and Credit Position?

IEC's gross financial debt fell to NIS 40.8 billion at the end of 2025, down from NIS 42.5 billion in 2024 and NIS 45.2 billion in 2023, according to a Midroog monitoring report, while its debt-to-capitalization ratio improved to 43.8% from 47.6% a year earlier. Adjusted EBITDA rose to NIS 7.7 billion in 2025 from NIS 5.5 billion the year before. S&P upgraded IEC's BBB+ issuer rating outlook from Negative to Stable on November 21, 2025, and Midroog, Israel's local rating agency, assigned a top-tier Aaa.il rating to new IEC bond series in April 2026.

How Has IEC Restructured Its Generation Fleet?

Under a government-mandated structural reform that requires IEC to divest generation capacity and open the sector to competition, the company sold its 1.7-gigawatt Eshkol gas power station for NIS 9.2 billion in June 2024. Independent power producers now compete with IEC for generation and grid access as part of that liberalization, which also underpins Israel's 2020 Government Decision 465, mandating a coal-fired generation phase-out no later than 2026 and a rise in the renewable share of electricity production to 30% by 2030.

What War-Related Financial Issues Has IEC Faced?

IEC continues to operate amid the effects of the Israel-Hamas war, which has caused project delays and disruptions, according to the company's Q3 2025 investor presentation. The company also reached a settlement for full payment of roughly NIS 1.1 billion in outstanding electricity debts owed by the Palestinian Authority and the East Jerusalem Electricity Company, of which approximately NIS 396 million had been received as of the settlement date.