Water prices rose by 5% this morning. This was the second stage of the government plan to increase water prices by 42% over the next two years in order to reduce consumption. The price of water has risen by 30% since the start of 2010 after a hike of 25% in January.

Under the government's original plan, water prices were supposed to have risen by 16.5% today. But the hike was lowered to 5% to balance out the fall in the price of economic inputs that began in February.

The next water price rise is scheduled for January 2011. However, the drought levy, which was introduced last summer but suspended by the Knesset Finance Committee in the winter, remains on hold but will be reintroduced if water consumption rises.

Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2010

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