EU: Funding of Gaza fuel depends on Hamas

The European Union said Monday it would resume the financing of fuel deliveries to Gaza only when it gets assurances that Hamas will "divert" electricity revenues and not introduce taxes on electricity bills.

Power was cut in parts of the Gaza Strip on Sunday after the EU halted funding for fuel deliveries to the

impoverished territory's sole power plant.

On Monday, the organization said the payments wouldn't resume because it had received word that

Hamas was "diverting" electricity revenues.

"We are ready to resume our support to the Gaza power

plant within hours once we receive the appropriate assurances that all the funds will be exclusively used for the benefit of the Gaza population," the European Commission - the EU's executive branch - said in a

statement.

The Fatah-led government that Palestinian President

Mahmoud Abbas set up in the West Bank has accused Hamas of siphoning off electricity revenues.

"Hamas is collecting all the electricity fees and never pays the costs of the electricity," said Jawwad Hirzallah, deputy minister of economy. "The Europeans were paying $10 million that Hamas collects from the people and doesn't pay the costs. So the European Union found itself paying the electricity company, while Hamas was pocketing the revenues."

The EU said it had decided on Thursday that it would suspend the payments for security reasons, particularly due to tensions at the crossing points into Gaza.

"We've also been given understand that Hamas plans to introduce taxes on electricity bills in the Gaza strip. ... This would not allow us to continue paying for fuel," said EU spokeswoman Antonia Mochan.

"We're ready to resume payments within hours once we have assurances that these taxes will not be introduced," Mochan said.

She added the EU executive pays for 25-30 percent of the overall electricity supply to the Gaza Strip, worth $8.75 million a month.