The Public Utilities Authority (Electricity) today raised electricity rates for private consumers by 3.5%, and for all consumers by an average of 4%. The update will come into effect on Sunday.

This is a regular update based on the input prices formula. The present rise is due to a 10% increase in fuel prices since the last update six months ago.

The Public Utilities Authority (Electricity) said that it reduced the rate hike by 0.23% from what it would have been on the basis of the formula. It made the reduction because of sanctions levied against Israel Electric Corporation (IEC) (TASE: ELEC.B22) for delays in building power stations under the emergency plan. The power stations should have come on line in the summer.

This is the third rates update this year, following a 5.2% rate cut in June and a 2.22% rate cut in April.

The electricity rate for households will rise to NIS 0.4571 per kw/h from NIS 0.4413; the rate for business and public agencies will rise to NIS 0.5208 per kw/h from NIS 0.5002; and the rate for street lighting will rise to NIS 0.3501 pr kw/h from NIS 0.343.

Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2009

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