The Cabinet and the Knesset are preparing to tackle Israel’s energy problem which Energy Minister Yitzhak Modai described today as a potential “disaster.” Energy conservation, including a plan to ban the use of private cars one day a week, was to have been discussed by Finance Minister Yigal Hurwitz’s” economic cabinet” today but the ministers decided to defer the issue to a general Cabinet meeting.
Modai said he would ask the Cabinet for special powers to regulate the use of energy. Under present rules, the State is obliged to supply electricity to any client regardless of wastage.
Modai appeared at the first meeting of the Knesset’s new Energy Committee, headed by MK Micha Harish of the Labor Alignment. The new body was formed by members of the Finance Committee and the Foreign Affairs and Security Committee, who have taken a special interest in energy. Previously, energy matters were handled by four separate committees.
OPEC CREATES NEW OBSTACLES
In his presentation, Modai said the recent meeting of the Organization of Petroleum Exporting Countries (OPEC) in. Caracas created new obstacles for Israel’s purchase of oil. He said the inconclusive outcome of the latest OPEC meeting resulted in the disintegration of the world’s oil price structure. The instability of oil prices on the free market makes it even more difficult than in the past to calculate the feasibility of potential oil transactions, Modai said.
He said the trend toward oil transactions between governments was a negative development for Israel because most OPEC countries will not deal with it. Modai said there may be an increase in the supply on the spot market in Rotterdam, but prices there are almost impossible to predict. The spot market price has been considerably higher in the past than OPEC prices.
Modai said that by 1984 Israel will obtain about 40 percent of its electricity from coal-fired power stations. The first of that kind will start operating in Hadera within a year.
Modai emphasized that the gravity of the energy situation must be brought home to every Israeli. Therefore, he supported the proposed one-day-a-week ban on private cars even though past experience has shown that the savings of fuel are only marginal and there is strong opposition to the idea. Any saving is significant, he said.
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