Electricity rates will rise 5.7% at midnight Monday February 1, the Public Utilities Authority (Electricity) has announced. The rise in electricity tariffs comes as Israelis are also being hit by price rises in food and fuel. Electricity rates have been falling for the past few years but the latest rise is due to a doubling in the price of coal over the past two years.
The price rise comes as electricity usage in Israel has been breaking new records over the past two weeks due to the severe winter weather. In December, the Public Utilities Authority (Electricity) had said that electricity tariffs would rise 4.9%. The extra rise reflects the continuing rise in coal prices in January. Following the rise expected revenue for the Israel Electric Corp. (IEC) from electricity sales in 2022 will rise NIS 2 billion from last year to NIS 24.4 billion.
In 2021, 23% of Israel's electricity was produced from coal. However, use of coal is gradually being phased out in favor of natural gas and will cease altogether in 2026. In 2022, 20% less coal will be used in Israel than in 2021.
Many other countries have raised electricity prices far more steeply than Israel. Electricity prices have risen by 34% in the UK, 35% in Sweden, 18% in Belgium, 14% in Austria, 6% in Italy and 5% in Germany.
Published by Globes, Israel business news - en.globes.co.il - on January 31, 2022.
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