The Israel Electric Utilities Authority decided to raise consumer tariffs by 3.5% in January.
After studying responses to a public hearing on the matter, the Israel Electric Public Utilities Authority decided on a more moderate electricity tariff increase for 2025 than originally envisaged. The price of electricity to the consumer will rise by 3.5% instead of 3.8% as proposed at the session.
The main reasons for tariff hikes are the difficult macroeconomic environment, war, and the increasing need to develop the electricity grid. But there have also been developments that have helped reduce price increases even at the listening stage by more than 50%. The most important of these was the expected commissioning of the 70 natural gas-fired combined cycle power plant instead of two coal-fired plants, which will have a significant impact on energy prices, and the proceeds from the sale of the Eshkol site, which drove the return to consumers.
The Electricity Authority stated that modifying the tariff will not mean reducing investment, and the development program will be maintained as approved in previous decisions.
The authority also sought to remind the public that since July 2024, any consumer, with any type of meter, has been able to easily switch their energy provider and get a cheaper tariff.
Published by Globes, Israel Business News – en.globes.co.il – on December 25, 2024.
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