Transportation fee means the sum of the Capacity Fee and the Throughput Fee for a given period to be paid by the Shipper for the transportation of Natural Gas in the transmission system.

The natural gas transmission tariff is composed of: (1) a capacity tariff of 0.7527 NIS per hour per mmbtu multiplied by 730 hours a month, based on a dollar exchange rate of 4.225 NIS per $; and (2) an actual flow tariff of 0.1250 NIS per per hour per mmbtu, based on a dollar exchange rate of 4.225 NIS per dollar.

The tariff will be updated as follows: 1/3 of the tariff will be updated based on the consumer price index on the day of the sending of the bill compared to the base rate. The base rate is that of November 2006 which was 102.9 (base rate 100 = 2002) and 2/3 based on the dollar rate as per the day the bill is sent and based on a dollar rate of 4.225 NIS per $1The tariff does not include VAT. 90% of the tariff is from the throughput component and only 10% is from the actual flow of gas.