Following Knesset passage of Amendment 27 of the Water Law in January 2017, the Israel Water Authority Council has reduced the rate for the recognized quantity of water (3.5 cubic meters per person) for household consumers by 14.5%, effective as of June 1, 2017.
This price cut completes a 30% reduction in water rates over the past four years, together with the water corporations reform, which makes it possible to manage the water sector more efficiently, while cutting the necessary cost of water and sewage services.
The new rate will be NIS 6.54 per cubic meter up to 3.5 cubic meters per person. The lower rate was made by possible by the return of proceeds for water production by private producers for the benefit of the water sector.
In addition, the water rates for farmers will be cut from NIS 2.51 to NIS 1.98 per cubic meter in the first stage, a 20% reduction. Two years from now, the rates will be cut by a further 10% to NIS 1.81 per cubic meter - a total reduction of 30%.
This water rate reduction for Mekorot National Water Company's agriculture consumers is part of a combined measure of transferring the proceeds from water production from the state treasury to the water sector.
This measure of part of a general arrangement and water production fee arrangement for homes and agriculture, and making the Water Authority responsible for them.
The Water Authority said that setting the rates set today by the Water Authority Council was the result of thorough professional work, which included many public hearings, as required by such a momentous step.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 28, 2017
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