Electricity tariffs will increase again in January

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Israel’s Public Utilities Authority (Electricity) announced last night that electricity tariffs in Israel will increase by 8.2% in January.

Electricity tariffs are supposed to be reviewed every year, but this year the tariff has been increased twice, by 5.7% in January and 8.6% in August, as the price of coal on world markets doubled and the shekel fell. 25% of Israel’s electricity is produced from coal.

The price of electricity affects the entire economy. Water rates are set to increase by 3.5% in January, and since electricity is the biggest cost in water production, water prices are expected to rise even more sharply in 2023.

Prime Minister-designate Benjamin Netanyahu promised during the election campaign to freeze the prices of electricity, water, fuel and municipal taxes and to subsidize them from Israel’s fiscal surplus. But it has little room for maneuver other than to pressure various authorities to achieve modest increases, as the previous government did.

Globes, Israel business news – published by en.globes.co.il on November 24, 2022.