Israel Electric Financial and Sector Reform Update

The Reform in the Generation Segment (Selected generation sites) חברת החשמל Israel Electric Eilat 92 Haifa 828 Eshkol 1,693 Orot Rabin 2,605 Reading 428 Gezer 1,336 Alon Tavor 583 Caesarea 130 Hagit 1,394 Rothenberg 2,290 Tzafit 583 Hagit: will be sold units with a capacity of 660 megawatts Ramat Hovav 1,137 The numerical figures are in MW - Steam dual purpose: coal and fuel oil Steam dual purpose: natural gas and fuel/ diesel oil - Gas turbine (internal combustion) Combined cycle (internal combustion and steam) A power station planned to be sold during the reform A power station which was sold during the reform Source: IEC 's Financial Statements for 2021FY Note: 1. In accordance with the IEC's undertakings adopted by the IEC's BOD on May 10, 2018, to the extent that the Government resolutions and/or the legislative amendments and/or the administrative decisions and/or the arrangements of the Electricity Authority and/or the aforesaid licenses given by the State of Israel, that will correspond to the (insofar as these are needed according to the State of Israel position), or that the collective agreement IEC and the employees representatives will not be in force, then all IEC's undertakings, according to the IEC's undertaking document, will not be in force and the State of Israel will not be able to file claims and/or complain against IEC with respect to those undertakings. On June 3, 2018, the required Government Decision was received, on July 19, 2018 the Knesset approved the Amendment to the Law, and on May 17, 2018, the Principles of the policy of the Minister and the Electricity Authority's Regulation as aforesaid were published. In addition, on November 4, 2018, the Collective Agreement came into effect after all the contingent conditions detailed therein were fulfilled. For the purpose of implementing the full structural change outline, it will be required the approval of the regulatory agencies, decisions and regulations of the Electricity Authority and granting licenses which, as of this date, have not yet been received and there is no certainty regarding the date of determining the agreements or the granting of such licenses and their final terms. As of this date, IEC is unable to reliable estimate the exact implications of the additional regulations and approvals that have not yet been formulated or received on its financial position and results. Investor Relations 42

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