The Israeli Electricity Authority announced last night that electricity prices in Israel increased by 8.2% in January.
Electricity prices are to be reviewed annually, but this year the fee has been raised twice, by 5.7% in January and by 8.6% in August, because coal prices have doubled this year on world markets and the króna has weakened. 25% of Israel’s electricity is produced from coal.
Electricity prices have a ripple effect throughout the economy. Water prices are set to rise by 3.5% in January, and since electricity is the biggest cost of water production, water prices can be expected to rise even more in 2023.
Benjamin Netanyahu, the Prime Minister’s nominee, promised during his election campaign to freeze the prices of electricity, water, fuel and municipalities and to subsidize them from the surplus in Israel’s public finances. But he has little scope other than to put pressure on the various authorities for moderate increases, as the previous government did.
Published by Globes, Israel business news – en.globes.co.il – November 24, 2022.
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