search
Front > News

Electricity rates in Israel to rise 4.9% in 2022

Power lines photo: Eyal Izhar
Power lines photo: Eyal Izhar
20 Dec, 2021 21:10
שלח תגובה במיילGuy Lieberman

The main reason for the increase in tariffs is the rise in coal prices on world markets.

After two years of prices falls, electricity rates in Israel are set to rise in 2022 due to the rise in coal prices. The Public Utilities Authority (Electricity) has published a public hearing about a 4.9% rise in the tariff in 2022 from NIS 0.43.3 per kilowatt hour to NIS 0.45.68.

Electricity rates in Israel are set as part of a closed grid in which revenue from the rates must cover all expenditure in producing and distributing the electricity. As part of the electricity reform, which began in 2018, three power stations have been sold to private companies and this was one of the factors contributing to the fall in prices over the past two years.

According to the government plan, Israel's power stations will stop using coal by 2025. But at present 23% of Israel's electricity is produced from coal and the full switch has not come soon enough to save Israeli consumers from the rising price of coal on world markets.

The Public Utilities Authority (Electricity) wrote, "The major factor in the rise in the tariff was the price of coal in the world, which has risen by more than 100% over the past year. The influence of the rise in coal prices has been moderated by the fall in the value of the dollar but overall there has been about an 11% rise in costs for calculating the tariff. The rise in the Consumer Price Index (CPI) combined with the increase in the amount of renewable energy on the grid have also brought about an additional rise on recognized costs."

This has been offset by the sale of the East Hagit power station to Shikun & Binui and Edeltech for NIS 1.6 billion as well as the strengthening of the shekel.

As part of the public hearing, people are asked to lodge their objections and remarks with the Public Utilities Authority (Electricity) about the planned price rise. If the hearing is unable to change the Authority's plans, the new electricity rates will come into effect on February 1, 2022.

Published by Globes, Israel business news - en.globes.co.il - on December 20, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Power lines photo: Eyal Izhar
Power lines photo: Eyal Izhar
groundcover founders credit: Yossi Yarom Israeli observability co groundcover raises $35m

groundcover has developed a “Bring Your Own Cloud” (BYOC) observability solution, redefining the architecture of a modern observability platform.

Tel Aviv Stock Exchange credit: Shutterstock MagioreStock Foreign investment in TASE hits five-year high

Foreign investors have been flocking to the Tel Aviv Stock Exchange in recent weeks, the TASE research department tells "Globes."

Elbit Systems tank turret systems credit: Elbit Systems Elbit Systems wins $100m tank turret systems deal

The Israel defense electronics company will supply its advanced UT30 MK2 unmanned turret systems to General Dynamics European Land Systems (GDELS) to be supplied to a NATO European country.

Tomer Weingarten Photo: PR Trump targets SentinelOne exec in act of revenge

The US administration has suspended the security clearance of the company's chef intelligence and public policy officer Chris Krebs and everyone associated with him.

Tel Aviv Stock Exchange share prices rising credit: Tali Bogdanovsky TASE opens sharply higher after Trump U-turn on tariffs

The pause is being interpreted as a climb down after US President Donald Trump admitted he had made the move to calm the markets.

Ashot Ashkelon credit: Ministry of Defense Up 250%, Ashot Ashkelon wins another Defense Ministry order

The Israeli defense company's share price has risen 250% in the past three years since FIMI Opportunity Funds acquired control.

Liad Agmon credit: Eyal Izhar Insight Partners Liad Agmon steps down as managing partner

Serial entrepreneur Agmon has served as a partner at Insight Partners Israel alongside Daniel Aronovitz who set up the Israel office.

Shekels credit: Shutterstock Vladerina32 Shekel slide resumes amid escalating tariff war

The Bank of Israel is not expected to intervene in the forex market despite the sharp depreciation of the shekel.

Nir Zuk credit: Inbal Marmari Palo Alto Networks mulls buying AI security co for $700m

Sources inform "Globes" that on Palo Alto's radar is Protect AI.

President Donald Trump hosts Prime Minister Benjamin Netanyahu credit: Reuters Kevin Mohatt Israeli officials confident on US tariff concessions

Senior Israeli figures believe that concessions could be tied to progress on strategic regional political issues that are important to President Trump.

Phoenix Investment House CEO Avner Hadad credit: Tommy Harpaz "The market has priced in all the bad things"

Phoenix Investment House CEO Avner Hadad says US markets could continue to fall, but that we are close to interesting territory for patient investors.

Tel Aviv credit: Shutterstock Tel Aviv slips in World's Wealthiest Cities ranking

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

Leviathan platform credit: Albatross C'ttee seen recommending no cut in gas exports

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

Accountant General Yali Rothenberg credit: Rafi Kutz Israel's fiscal deficit continues to narrow

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Arkia credit: Arkia Arkia cuts Tel Aviv - New York April fares

Arkia has cut fares at the last minute, a time when prices usually soar even higher, according to the pricing method used in the industry.

Bank of Israel Governor Prof. Amir Yaron credit: Dani Shem Tov Knesset Spokesperson BoI Governor: US tariffs could push up inflation in Israel

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018