The Israel Public Utilities Authority (Electricity) announced last night that electricity rates in Israel will rise by 8.2% in January.
Electricity rates are supposed to be revised annually but this year the rate have been increased twice, by 5.7% in January and by 8.6% in August, because coal prices have doubled this year on world markets and the shekel has weakened. 25% of Israel’s electricity is produced from coal.
The price of electricity has a knock-on effect throughout the economy. Water rates are due to rise by 3.5% in January and as electricity is the biggest expense in producing water, water prices can be expected to rise even more sharply during 2023.
Prime Minister designate Benjamin Netanyahu promised during his election campaign to freeze the prices of electricity, water, fuel and municipal taxes and subsidize them from Israel’s fiscal surplus. But he has little room for maneuver other than to press on the various authorities to moderate rises, as the previous government did.
Published by Globes, Israel business news – en.globes.co.il – on November 24, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.