Electricity lines 390.
(photo credit: Thinkstock/Imagebank)
Prime Minister Binyamin Netanyahu on Sunday instructed Finance Minister Yuval
Steinitz and Energy and Water Minister Uzi Landau to examine progressive
differential electricity rate hikes and spreading them over a longer period of
The Public Utilities Authority (Electricity) approved an 8.9
percent rate hike on Thursday.
Among the groups that might be entitled to
cheaper electricity rates are large businesses that may either fire workers or
raise prices due to higher electricity rates, institutions that care for the
sick and elderly, and large families.
“After we dealt with the rise in
apartment prices, and after we saw the initial results of this handling, which
resulted in a drop in prices, we should tackle the rise in the price of
electricity,” Netanyahu said at the start of Sunday’s meeting of Likud ministers
ahead of the cabinet meeting. “The higher price of electricity is due to the
sanctions against Iran, which has raised the price of oil.
This is not
the result of a public dialogue on the sanctions, but a consequence of the
He did not mention the disruptions in natural-gas deliveries
from Egypt to Israel Electric Corporation, which are the main reason for the
electricity rate hike. The IEC wants a 30% rate hike, which the Public Utilities
Authority had already decided to spread out over three years.
current rise in prices was supposed to be much more than 40%, due to the
stoppages in natural-gas deliveries from Egypt,” Steinitz told the Likud
ministers. “We decided to forgo NIS 1 billion in tax revenues to mitigate the
price hike to just 9%. Gas deliveries from Tamar will begin in mid-2013, and the
price will begin to fall.”