"I estimate that prices will not rise by more than 5%, but I cannot promise it," Water Commissioner Alex Kushnir to the Knesset Economic Affairs Committee today. He said that the sharp rise in energy prices in the past year means that there is no choice but to raise water rates.
"The issue of rates is being readied for discussion. The database has not yet been prepared. The Water Commission will soon discuss the matter, after which there will be a public hearing. In late November or early December, we'll know what the items of the water rate will be, and then we'll know how much to raise it," Kushnir said.
Ministry of Energy and Water director general Shaul Tzemach said, "The water commission has no discretion in the current structure of the water industry. He applies the rules, and he cannot lower rates and maintain the same level of service and water supply."
MK Israel Eichler (United Torah Judaism) blamed the rise in water rates on the establishment of municipal water companies and the removal of Knesset control on water rates. "Prices were 50% lower 3-5 years ago, so someone is making money unjustly. Control over water rates should be restored to the Knesset, the water companies should be abolished, and the Ministry of Finance should pay for water infrastructures like it pays for roads."
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2012
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