Israel's electricity rates to fall in 2021

Hadera power station

The IEC said that the lower tariffs were made possible by the sale Ramat Hovav power station, and the fall in natural gas and coal prices.

Israel's electricity rates for household use will fall by 2.8% in 2021, the Israel Electric Corporation (IEC) (TASE: ELEC.B22) has announced. The IEC said that the lower tariffs were made possible by the sale Ramat Hovav power station, and the fall in natural gas and coal prices. Investment in increasing the capacity for solar energy production and cancelling the exemption on import duties for coal meant that the cut in tariffs is not as large as it might have been.

The IEC said that the tariff in 2021 will be NIS 0.43.15 per KWh compared with NIS 00.44.84 in 2020.

The IEC sold the ramat Hovav power station to Shikun and Binui Holdings Ltd. (TASE: SKBN) and Edeltech for NIS 4.25 billion, which would have allowed for a 5.5% reduction in tariffs by itself.

In 2020, IEC began buying natural gas from the Leviathan partners at a lower price than from the Tamar partners and it also took advantage of the very low price on the world liquefied gas market.

Published by Globes, Israel business news - en.globes.co.il - on December 1, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Hadera power station
Hadera power station
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