| Company type | Part municipally owned, part private |
|---|---|
| Industry | Electricity distribution |
| Founded | 1914 |
| Headquarters | Jerusalem, Israel |
Area served | East Jerusalem, West Bank |
| Products | distribution |
Number of employees | 450 employees |
The Jerusalem District Electricity Company (JDECO) is an electricity company established in its current form in 1956 that distributes and supplies electricity to consumers in and around East Jerusalem, Bethlehem, Ramallah and Jericho. The company does not have its own power stations, but buys over 95% of its electricity from Israel Electric Corporation (IEC) and the remainder from Jordanian National Electric Power Company.
JDECO supplies electricity to 30% of households in the West Bank and East Jerusalem. JDECO supplies electricity in its license area, while IEC sells electricity directly to the PA to distribute in areas not covered by JDECO.[1] JDECO recorded a net loss of about NIS 2.6 million in 2011.[2] In 2012, JDECO owed NIS 458 million to IEC.[1]
The Jerusalem District Electricity Company was founded in 1914, before the British Mandate for Palestine.[1] The Company was established in 1956 in its current form.[2]
JDECO is a joint-stock company. As at 2016, 25% of its shares were owned by the municipalities of Jerusalem, Ramallah, Al-Bireh, Bethlehem, Beit Sahour, Beit Jala and Jericho, while the remaining 75% were owned by over 3,000 private shareholders. The board of directors consists of 18 members: 9 representatives of the municipalities and 9 representatives of the private shareholders. The company has four area branches, respectively in Jerusalem, Ramallah, Bethlehem and Jericho. In 2011, JDECO employed about 450 workers.
JDECO’s activities in East Jerusalem are regulated by the Israel Public Utility Authority for Electricity (PUA). Its activities in the West Bank are regulated by the Israeli Civil Administration and the Palestinian Authority (PA).[2] Thé Israel Electricity Authority has granted JDECO a 20-year license for electricity distribution in East Jerusalem, which currently runs to 2030, and an annually renewable license for the supply of electricity to consumers.
JDECO does not have its own power stations, but purchases over 95% of its electricity from Israel Electric Corporation (IEC) and the remainder from Jordanian National Electric Power Company. In 2011, all of the electricity distributed by the company in East Jerusalem was purchased from IEC. The company is also responsible for connecting new consumers to the grid, as well as metering and billing. It has exclusive rights within its license area.
JDECO‘s activities in the Jerusalem area constitute about 1/3 of the company’s total economic activity.
Most of the electricity sold by JDECO is supplied by IEC. However, by 2012, JDECO’s debt to IEC was NIS 458 million.[1]
On 23 February 2015, IEC intentionally cut off electricity to the West Bank for about 45 minutes due to unpaid debts.[3] Two days later it again cut off electricity, stating it was a warning to the Palestinian Authority to begin paying down the debt, which at that time was NIS 1.9 billion.[4] The majority of the debt is owed by the PA and JDECO.[5] IEC stated that it is losing NIS 85 million per month on power supplied to Nablus and Jenin that is not being paid for, causing the majority of IEC’s quarterly loss.[6] The Palestinians accused IEC of collective punishment,[7] however, IEC stated that it must operate independently and are treating this as it would any customer who does not pay their debts.[8]
On 31 March 2016, IEC again cut power to the Jericho area over NIS 1.7 billion in debts.[9] On 4 April, IEC cut power in the Bethlehem area,[10] and the following day it cut power in the Hebron area.[11] On 6 April, IEC restored full power to the West Bank after it received a payment of NIS 20 million, and an agreement to receive a full debt repayment schedule within seven days.[12]