Domestic electricity prices to rise by 3.5%
As of Sunday electricity price to stand at 45.71 agorot per KWH, instead of current 44.13 agorot per KWH. Sources in Public Utility Authority say rise in gas prices main factor in increase
The Public Utility Authority which sets the electricity price rates announced this week that electricity prices in the domestic sector are expected to rise by 3.5%. The new price will take effect next Sunday and will be set at 45.71 agorot per kilowatt hour, instead of the current 44.13 per KWH.
The general electricity price rate (for the commercial and public sector) was set at 52.08 agorot per KWH (a 4.1% increase) while the street light price rate was set at 35.01 agorot per KWH (a 2% increase).
The authority further stated that the Israel Electric Corp lost NIS 45 million (roughly $12 million) following a sanction for its delay of the creation of power stations. Consumers were consequently reimbursed by sustaining a 4% increase of electricity price rates instead of the original 4.23% increase.
Sources in the Public Utility Authority explained the increase with a rise in gas prices since the last price update in 2009 – an estimated 10% increase.
Other contributing factors to the electricity price rise include a 22.5% increase in diesel oil prices, and a 28% increase in fuel oil rates.
Elements in the Public Utility Authority noted that electricity rates are generally updated once every six months or when a change of more than 3.5% occurs in the Israel Electric Corp's input in the three month period following the update. This constitutes the third price rate update for 2009 after the price reductions in June and April.
