The Water Authority has ordered the municipal water companies to streamline, after water tariffs were cut by 5% in January.
"This is the first step in a plan drawn up by the Water Authority to lower water tariffs. It should result in a further reduction in municipal water tariffs in early 2015. By law, water tariffs must reflect the real cost of water, and any reduction in the tariffs can mainly be carried out by real streamlining by the water companies and by Mekorot National Water Company, for the good of the water market and its consumers," said the Water Authority in a statement today.
The Water Authority added that the purpose of the step "is to adjust the companies' operating costs (for 2014) to the norms set by the Water Authority Council to streamline the companies' operations while maintaining the high level of service for all the customers of each company, and to further reduce water tariffs."
By June, every municipal water company must submit to the Water Authority its streamlining plan to reduce the operating costs of the municipal water system. The Water Authority has set up a taskforce to assist the streamlining process.
The main items that the municipal water companies will review in their streamlining plans are a reduction of jobs and contracts with outside consultants, more efficient use of the companies' employees, switching to direct billing instead of more expensive billing through the municipalities, adjusting infrastructures and computer maintenance costs to the norms set in the tariff, refinancing current loans with cheaper loans, negotiating lower arnona (local property tax) with the municipalities, and moving from plush offices to lower cost premises.
Published by Globes [online], Israel business news - www.globes-online.com - on April 6, 2014
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