The Ministry of Finance is proposing a rise in electricity rise of only 6% this year, according to a proposal submitted to the plenum of the Public Utility Authority Electricity.
Ynet reported yesterday that tariffs would rise 9%, but the Ministry of Finance has managed to achieve a less steep rise this year by deferring most of it to 2013-2014. The assumption is that in those years the rise will be offset by the fall in the cost of production as a result of the start of the flow of Israeli gas from the Tamar field.
Minister of Finance Yuval Steinitz instructed his ministry to do everything possible to reduce the rise in the tariff, in view of the fact that it has already risen 15% since the summer.
The rise in electricity tariffs is due to the halt in the flow of gas from Egypt because of sabotage of the pipeline. Without the rise in prices being spread an additional rise of 30% would be required immediately.
The Public Utility Authority Electricity said in response that it did not comment on speculation.
Published by Globes [online], Israel business news - www.globes-online.com - on January 4, 2012
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