The Public Utilities Authority (Water) today said that measures by the water corporations aimed at improving water and sewage transportation infrastructure had significantly reduced water losses and failure to collect fees, which has made it possible to lower the water rates for consumers. "Following a huge investment of billions of shekels, the water sector has been stabilized, and regulation mechanisms have been significantly improved. The trend has been reversed, and water rates are being professionally, judiciously, and consistently cut," Water Authority Director Alexander Kushnir said today.
The Water Authority added that additional measures it would take during the coming years were also likely to make further rate cuts possible in 2016, when the high property taxes paid by water facilities are reduced and cross subsidies in the sector are eliminated. The water rate for home consumption has already been cut by 5% this year, and the current price for home consumption is NIS 8.88 per cubic meter.
Over the past year, Kushnir ordered dozens of water corporations to take immediate streamlining steps aimed at reducing water prices. The Water Authority's instructions to the corporations also included discontinuation of external consultation services, an end to doing business in ostentatious luxury offices, etc. Kushnir stated, "The water sector this year has overcome the most extreme lack of rain in Israel's history, while fulfilling all its commitments."
Last week, Minister of National Infrastructure, Energy, and Water Silvan Shalom declared he would take action to reduce the number of water corporations in an effort to cut water rates. According to Shalom, his ministry is considering the establishment of a national water corporation that will manage all of the 55 corporations operating throughout Israel. He added, "The main reasons for the high cost of water are the cost of desalination and the fact that the government has decided that the state budget will no longer subsidize the water sector."
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2014
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