The Ministry of Finance and the Union of Local Authorities in Israel have reached agreement on a thorough reform of the municipal water companies. The reform will include streamlining and cost savings, which should result in lower water rates in 2014 and a 5% reduction by the end of 2015.
"A 5% reduction in the price of water and simplifying the water companies' confusing bureaucracy are important steps for dealing with the high cost of living and for improving efficiency in the water economy," said Minister of Finance Yair Lapid.
Under the agreement, beginning in 2014, all current municipal water companies will be classified as regional companies for calculating operating costs, and reducing them. The new structure will allow the water companies to choose one of three options: full merger between current companies to consolidate assets; regional incorporation in a structure that will allow municipal water companies to cooperate on operational and administrative issues; and keeping their current structure.
Each year, the water companies will tested to see if they meet targets, to ensure administrative efficiency, the provision of reasonable services to the public, and preserving the savings from the operational streamlining.
Published by Globes [online], Israel business news - www.globes-online.com - on May 28, 2013
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