Electricity rates in Israel to fall 7% next month

Israel Electric Corp

Cheaper coal, the stronger shekel and competition from private electricity producers are bringing down tariffs.

Electricity rates will fall 7% next month, the Public Utilities Authority (Electricity) plenum decided today. This is the second decrease over the past year and means that electricity prices would have fallen by 16% in September, when the tariff cut comes into effect after the completion of due process including a hearing.

The Public Utilities Authority (Electricity) said that the tariff cut was possible because coal prices had fallen 17% over the past year. Another factor has been the 5% appreciation of the shekel against the dollar, and the late entry of electricity producers using renewable energy. These producers are expected to be worth about NIS 350 million when grid costs are taken into account.

The Public Utilities Authority (Electricity) said that the average Israeli family can expect to save NIS 300 a year on their electricity bill.

Public Utilities Authority (Electricity) chair Orit Farkash said, "The Authority's decision to lower electricity rates is a result of intensive work by the plenum recently. This rate is set during a period of private competition that has become a reality in the electricity grid. The Authority will continue to care about promoting the electricity grid, the public's welfare, while looking after everything relating to the public's pocket."

Published by Globes [online], Israel business news - www.globes-online.com - on August 6, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Israel Electric Corp
Israel Electric Corp
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