nov 30, 1996 - Turbowicz: Supervise public utilities with single agency
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The Jerusalem Post
November 29, 1996, Friday
Copyright 1996 The Jerusalem Post
Section: ECONOMICS; Pg. 15
Length: 295 words
Byline: David Harris
Body
CURRENT supervision of infrastructure monopolies is inefficient and needs to be replaced, according to Antitrust Authority director-general Yoram Turbowicz.
Speaking in Jerusalem this week, Turbowicz, who is the Industry and Trade Ministry official responsible for overseeing monopolies and cartels, called for the creation of a new authority that would be responsible for regulating organizations such as Israel Electric Corporation and Channel 2.
The authority would consist of several commissioners, each responsible for a different utility.
"It would be similar to the US Public Utilities Commission," said Hebrew University public finance professor Eytan Sheshinski. "It is true to say there are many similar problems facing the large-sized utilities." A united body would be able to share experience, while retaining specialist knowledge on each utility.
It could be argued such a body would be too powerful, said Turbowicz. "But I reject this argument. If you want to supervise a strong monopoly, you must have a body with some form of symmetry."
However, Sheshinski said he is concerned such a body may become yet another tool for the politicians, who would be tempted to appoint lackeys to the commission.
Among the examples of bodies failing to operate efficiently, said Turbowicz, has been the Public Utilities Authority-Electricity. From its formation in April until last week, it had only one member, former Ben- GurionUniversity president Chaim Elata, despite the legal requirement of five appointees. Both this government and the previous one have failed to make the necessary appointments. Consequently, IEC has been unable to put electricity prices up for eight months, as it needs the authority to approve the decision.
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יורם טורבוביץ'
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