The price of coal, which produces 23% of Israel's electricity, has almost doubled from $210 per ton to $380 per ton this year.
Israel's Public Utilities Authority (Electricity) will meet next week to discuss a hike in electricity tariffs due to the huge price increase in coal. The Public Utilities Authority wants a price hike in July, despite the political pressures not to raise prices.
Electricity prices are usually raised once a year and in January the electricity tariff for household consumption was increased 5.7%. But since then the price of coal, which is still used to produce 23% of Israel's electricity, has almost doubled from $210 per ton to $380 per ton. The situation has been partly eased by the Ministry of Finance canceling excise tax on coal of NIS 105 per ton, which will remain in effect until March 2023. Despite this a price hike is still needed to offset the rise in coal prices and sources in the energy market believe that the hike could be as high as 15%.
Published by Globes, Israel business news - en.globes.co.il - on June 30, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.