The Water Authority Council was expected today to approve a 4% tariff hike for 2013 but at the last moment the vote on the matter was postponed until October 18. The final decision will be made in November, after a public hearing on the decision.
The water tariff for households will rise from NIS 7.50 per cubic meter per person to NIS 7.80 for basic consumption, and from NIS 12.10 per cubic meter per person to NIS 12.50 for additional consumption. Most of the increase is due to higher tariffs for electricity, which is the main input in water production.
A second factor is the increased use of desalinated water, which is expensive to produce. Two new seawater desalination plants are due to come into operation during 2013, at Ashdod and Soreq, and the Palmachim plant's expansion will be completed. The Water Authority also proposes recognizing other costs of Mekorot National Water Company and municipal water corporations.
The Water Authority approved the tariff hike in principle last week, and the Water Authority Council will approve the details today. During last week's meeting, representatives of the Ministry of Finance and Ministry of Environmental Protection raised reservations against the rate hike related to Mekorot. These items account for 0.4-1% of the tariff hike, according to various versions.
However, the public's two representatives on the council voted to recognize the additional costs requested by Mekorot.
Published by Globes [online], Israel business news - www.globes-online.com - on September 27, 2012
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