The government appointed committee will recommend closing the water corporations.
The committee examining efficiency in Israel's water economy will today recommend that the water corporations be closed down, and that this will bring a 9% fall in water rates. The office of Minister of National Infrastructures Energy and Water Resources Silvan Shalom, who appointed the committee with former Minister of Finance Yair Lapid, confirms the details.
Only last week was it published that the Public Utilities Authority (Water) approved a 10% fall in water rates from January 1, 2015, which resulted from streamlining at the water corporations, prices changes and balancing accounts at the Mekorot National Water Company. This rate reduction follows a 5% fall in prices in January 2014 and a 0.5% fall in July 2014.
The committee's recommendations will need to be approved by the Knesset while local authorities and municipalities are expected to oppose the measure. It looks likely that no more water corporations will be established, while a government authority will be set up to manage the water network.
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014
Silvan Shalom