This is bound to be an unpopular opinion. No matter how you look at it, electricity prices in Israel are too cheap. You can blame the government's lack of clear, long-term power policy, Israel Electric Corp for conducting itself like a cartel and showing no desire to find alternative ways of production, or the environmentalists who are fighting for open spaces, air quality and the general public's health, but at the end of the day the responsibility is yours. Save electricity now – or pay dearly later.
Israel's annual power consumption grows exponentially compared to other developed countries. We are becoming increasingly dependent on electricity in our daily lives, but with the absence of a viable development policy, Israel meets the growing demand by increasing production– not by conserving energy and increasing efficiency.
Electricity rates in Israel are far lower than those customary in Europe – up to 50% lower. Moreover, electricity prices in Israel, which are derived mostly from crude prices and production, operation and distribution costs, do not include the external costs of emissions and greenhouse gases .It also excludes the affect power production has on the environment and quality of living – those would add 50% to the existing rates.
Low rates hinder progress
On the one hand, Israel is a virtual island of power production, since it cannot rely on its neighbors for backup, or depend on only one source of production. On the other hand, the State cannot seem to apply any of the government's decisions as to the production of clean electricity and power conservation.
Low electricity rates encourage consumption and emissions and hinder the development of more costly, alternative energy sources. Not for nothing, but one of the OECD 'srecommendations in its latest environmental report on Israel was that the government should hike electricity prices.
On the ground however, Israel is practically the Wild West: Solar power quotas and rates keep changing and entrepreneurs have trouble raising funds and getting land rights; offshore gas fields' production assessments are made sans any awareness of marine conservation and the future location of the gas processing facility has yet to be decided; IEC power plants continue to use only fuel oil or coal, and the public raises their voice in objection only if danger looms over their back yard.
Quality environment comes with a price
The solution requires, first and foremost, collaboration between the government, IEC and the Israel Land Administration on the issue of formulating a blueprint for Israel's electricity market. Regulation and a pragmatic set of financial guidelines, crafted in favor of efficiency and the production of clean electricity, including raising rates and determining scaled rates, are also needed.
But the solution lies beyond comprehensive planning, regulation, taxation or the implementation of clean technologies – it lies with changing habits and behavior. About 30% of Israel's power consumption is domestic and an additional 30% is public, meaning we have control over it.
The easiest, cheapest, fastest and friendliest way – to both the environment and the pocketbook – is to reduce consumption: Better domestic insulation, buying energy-efficient electrical appliances and the smart use of power can reduce your electrical bill. So if you want social and environment justice and a better quality of life and of the environment, you will probably have to pay for it.
Prof. Adi Wolfson is Head of the Chemical Engineering Department at SCE College of Engineering