Key Investment Highlights

Update of the generation tariff base חברת החשמל Israel Electric ■ On January 9, 2023, the Electricity Authority published a decision regarding a new rate base for the generation segment that will apply until the end of year 2027. This decision includes reference to recognition of the operating costs, cost of capital, recognized assets, working capital, availability of the generation units, and calculation of the gaps between the recognized cost and actual costs. The change of the method of recognizing assets and extending the life of the generation units, affected the costs of 2022 in a direction opposite to the debt arising from the use of coal. The gaps created in the generation segment in 2022, amounting to approximately NIS 1 billion, were also spread over 3 years. The spread of the 2022 fuel debt offset by the effect of the change in methodology of the generation tariff base in 2022 is approximately NIS 2.8 billion over the years 2023-2025. New tariff base for transmission and distribution segments for the coming years has not yet been published. Source: IEC's Financial Statements for 2022FY and for 9M.2023 Investor Relations 37 37

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