The Water Council of the Water Authority decided on Thursday that the second round of rate hikes for water would be significantly smaller than originally planned. Instead of rising 15%, prices will rise by 5% on July 1.
The goal was to reach a 40% price hike by year's end to cover the NIS 25 b. deficit in the water economy and pay for desperately needed water infrastructure projects, according to the Authority. The Authority aims to have enough desalination plants up and running by 2013 to offset any shortfalls which might occur from a run of arid years in the future.
Prices may not rise by 40% by year's end though no final decision has been taken. The direct cause of the council's decision was the reduction in electricity prices by 11% in February.