The full assembly of Israel’s Electricity Authority has approved a 2.6% increase in the cost of electricity. The decision comes at the end of a three-week public comment period and will go into effect starting from February 1.
The Electricity Authority plans to raise the price of electricity for household use by 2.7% starting in February, resulting in a rate of .53 shekels ($0.14) per kilowatt-hour. The agency estimates that household consumers will see an average increase of 9.5 shekels ($2.59) in their monthly electricity bills. The new rate is expected to go into effect on February 1 following a final decision.
According to the Electricity Authority, the price hike is meant to cover increases in the cost of fuel purchases over the last several years, which have not yet been factored into the cost of electricity, as well as increased costs due to inflation over the last year, the increased interest rate, ongoing developments in the country’s electricity market and other factors.
The decision to raise the price of electricity was made despite the fact that in December, the Israel Electric Corporation (IEC) signed an agreement to sell the Eshkol Power Station in Ashdod to private owners for a total of nine billion shekels ($2.46 billion). Out of that sum, four billion shekels ($1.09 billion) will go to the IEC, while the remaining five billion shekels ($1.37 billion) are earmarked to go towards lowering the cost of electricity. However, some of that amount may be saved as a provision for the possibility of unforeseen price increases in the electricity market due to Israel’s ongoing war against Hamas in the Gaza Strip.
