Price of electricity to rise by less than planned

The Israel Public Utility Authority for Electricity has decided that the consumer tariff will rise by 3.5% in January.

After examining the responses to the public hearing on the matter, the Israel Public Utility Authority for Electricity has decided on a more moderate rise in the electricity tariff for 2025 than was originally envisaged. The price of electricity to the consumer will rise by 3.5% instead of 3.8% as proposed in the hearing.

The main reasons for raising the tariff are the challenging macro-economic environment, the war, and the growing need to develop the power network. There were also, however, developments that helped to reduce the price rise even at the hearing stage, by over 50%. The main ones were the expected commissioning of combined-cycle power plant 70 running on natural gas in place of two coal-fired plants, which will have a substantial impact on energy prices, and the proceeds of the sale of the Eshkol site, which paid back to consumers.

The Electricity Authority stated that the revision to the tariff would not mean a cut in investment, and that the development program as approved in previous decisions would be preserved.

The Authority also sought to remind the public that, since July 2024, any consumer, with any kind of meter, has been able to switch power supplier easily and obtain a cheaper tariff.

Published by Globes, Israel business news - en.globes.co.il - on December 25, 2024.

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