Electricity rates to fall 2.3% in January

IEC Israel Electric Company

The cut is less than the Electricity Authority projected in August.

Electricity prices in Israel will fall 2.3% from January 2018, subject to a public hearing, the Israel Public Utility Authority for Electricity announced today. This will mean a saving of about NIS 100 annually for the average Israeli household. The new tariff will be NIS 0.46 per kilowatt-hour.

The average tariff for high-voltage consumers will fall 0.5%; for mid-voltage consumers the fall will be 1.2%; and for low-voltage it will be 2.9%.

In August this year, the Electricity Authority announced a hearing on changing the network component of the electricity tariff (the other components are production and distribution) that would bring the overall tariff down by 3% from January. The reason that the cut is now slated to be just 2.3% is the pension costs of retiring Israel Electric Corporation workers recognized for the purposes of setting the electricity tariff, which have been under examination in recent years.

The Electricity Authority says the new tariff will give Israel Electric Corporation an incentive to invest NIS 2.4 billion in 2018, which compares with just NIS 1.5 billion invested in the network in previous years.

Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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IEC Israel Electric Company
IEC Israel Electric Company
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