2014 Activities

With the initiative of the Head of the Energy Authority ,Aman held accountability session about the gas purchase agreement signed between Palestine Power Generating Company and Delek Noble Company

With the  initiative of the Head of the Energy Authority ,Aman held accountability session about the gas purchase agreement signed between Palestine Power Generating Company  and Delek Noble Company

To identify the policy of the Authority about the management of the hydrocarbon sector in general and gas in particular , the legal framework organizes this policy , the institutional parties responsible for approving the policy and regulating applying it,  the nature of the executive parties and Upon an initiative from Dr.Omar Kitanneh, the Head of the Energy Authority ,Aman held an accountability session to clarify these aspects about the agreement signed between Palestine Power Generating Company  and Delek Noble Energy, its provisions and effects. Representatives of official parties, local community , economic analysts and academics participated in this session. 

Dr.Azmy Al-Shuaiby ,Commissioner of AMAN ,opened the session confirming that the main goal of these sessions is the availability of the information for the public which will make the discussions concerning the public affairs professional ,objective and political with respect and far from demagogy, rumors and at the same time enhance officials accountability and open the way for the related parties interested in the public affairs to participate in making the national policy and to control applying the approved policies  by the officials   . Then Dr.Ketanneh ,Head of the Energy Authority and Natural Resources , confirmed that the agreement signed between Palestine Company and the Israeli -American supplier of the natural gas aims to secure  stable source of energy to ensure the continuity of the ability of Jenin Station to generate electricity as the first station to generate electricity in the West Bank ensuring that this is the first agreement ruled by commercial considerations according to international measurements taking into account the rights and the duties, stressing that this agreement will not be approved unless  the Palestinian Government agrees on the license application submitted by the company to generate electricity .The application contains a group of requirements as the long-term agreements to secure the land , the fuel and the water set by the law , the license system and the conditions specified by the government .It is worth mentioning that the agreement of providing the station, which will be built in Jenin ,will be cancelled if it is not activated within nine months from being signed. 

The agreement ensures for the Palestinian citizen reduction of the prices of electricity and contributes to secure a variety of sources of energy and power generating

Ketanneh clarified that the Palestinian government is not a part of the agreement and its role was limited to ensure less  prices of electricity than the recent prices to enable the station to produce electricity with less prices and so achieve a significant reduction in the prices of electricity which may reach up to reduce the price of the kilowatt for the consumer to approximately 3.5 agorot which may reduce the burden on the government and the citizen at the same time .Ketanneh also said that the establishment of a Palestinian power station will participate in reducing the dependence on imported electricity from the Israeli supplier alone which is the goal sought by the Palestinian Authority by exploiting different sources of energy to enable the PA to reduce their indebtedness resulted from buying electricity from Israel with high prices .

The duration of the agreement is 20 years and when the duration is longer ,there will be stability of the production of electricity

About the import of gas from Israel for 20 years ,Ketanneh clarified that the agreement provides that the duration is 20 years and when the duration is longer, there will be stability in the production of electricity as the companies of generating electricity in the world resort to save fuel in a sustainable manner for long terms proportional to the life span of the generating station to ensure the sustainability of the company and its production capacity. He also clarified that the Palestinian Government developed requirements for granting  license to generate electricity  the most important is to secure a permanent  source of energy to ensure the sustainability of electricity .He explained that the agreement signed with "Delek Noble Energy" forces the Israeli company to secure the  gas from any other source in the case that the source available stopped or compensates if the investment stops and if the amount of consumption is influenced.

Palestinian Legislations don't permit transfer of ownership for licensed companies without the approval of the concerned authorities

The general law of electricity No.13 for the year 2009 and the system of the foundations of license for power  companies issued according to it for the year 2010 requires the approval for the structure of the partners and their shares by the Energy Authority and the Electricity Regulatory Council by the license granted to the company and the approval of changing in the members of the Board of Directors and that no other partners can be added unless the Authority agrees.

In this aspect ,he clarified that the Palestine Power Generating Company is an investment of the Palestinian private sector consists of national capital .It was agreed with the company ,according to resolution issued by the Palestinian Council of Ministers ,that the local councils have the right to participate in the ownership of the company by 25% of the capital and  that  25% from the companies shares are offered for public subscription .  

This agreement doesn't contradict with the possibility of utilization of the Palestinian gas fields discovered near the coast of Gaza

The Head of the Energy Authority assured that the gas agreement doesn't represent a monopoly but it is a form of verifying the energy sources and that the Palestinian market will need bigger amounts of gas than the amount agreed in this agreement especially under the heading to built another station to generate electricity in the south of the West Bank (Hebron) .In the case that investment of the Palestinian gas discovered in the coast of Gaza starts, it will not be easy to benefit from this gas because the Israelis control the pipelines that transfer the gas and it will not be possible to transfer the gas to the West Bank but through the Israeli control .

Ketanneh also stressed that the establishment of local generating stations is a step in the right direction to enable the Palestinian Authority to control the supply of electricity from local resources and to facilitate the mission of controlling this sensitive sector besides controlling the prices to let the services reach to the subscribers in appropriate prices . 

Ketanneh also clarified that this is the first agreement that guarantees international arbitration in accordance with the international laws and it is subjected to the international laws not to the Palestinian or Israeli law which will stop cutting the oil supplies in the time of wars and conflicts.

During the discussions and the questions directed to the Head of the Energy Authority ,some of the representatives of the parliamentary blocs participating in the sessions (Abu-Ali Moustafa bloc represented by the member of the Legislative Council Khalida Jarar ,Change and Reform bloc represented by the members of the Legislative Council Dr. Iyman Draghmeh and Mr.Fadel Hamdan, Fateh bloc represented by the member of the Legislative Council Abedallah Abedallah ) assured the importance of the session and the presented  information emphasizing on the political dimensions of the agreement and the importance to discuss it on other levels especially in the Legislative Council. 

Some of the participants expressed their fears that the agreement devotes the  dependency and the continuation of the Israeli control on the Palestinian economy. Some others saw that the agreement enhances the Israeli control of the natural resources which must be owned by the Palestinian people .The economic expert Dr Nasr Abed El-Kareem  ,despite his lack of experience in the technical aspects related to the agreement ,indicated that he focused on the political considerations when he evaluated this agreement .Here, the Head of the Energy Authority confirmed that as a result for the legal consultation presented by experts of the international law, the Palestinians right in their natural resources doesn't expire by obsolescence and at any time the Palestinians has an internationally recognized  state they can fully claim their rights including full compensation for the  resources consumed by the occupation and so the agreement doesn't influence these rights .Representatives of the Palestinian private sector expressed their conviction of the importance of the agreement where the Deputy Chairman of the Federation of Industries ensured the importance of enhancing  the role of the private sector in managing the national economy. The representative of Pal Trade clarified that Palestine Power Generating Company  is a national Palestinian company and the production of electricity from a Palestinian company is surely better than getting it from Israeli company.

Finally ,the participants agreed that there is absence of reference of regulating the sector of fuels and that the Palestinian Government should speed and immediately starts reforming the legislative framework that regulates this sector by issuing special regulating Palestinian law , reform the institutional framework and the institutional parties responsible for approving the policy , regulating and controlling applying this policy and the nature of the executive parties with the possibility to benefit from the reform experience which was done in the sector of electricity by separating between the policy maker , the executive body and the controlling body.

This project is funded by the EU.