The home consumer tariff will fall by 4.13%, the kWh price will be 53 pence • The change is due to a decline in coal prices and the start of the whale's expected activity

• Illustration by Joshua Joseph

Thanks to the Whale gas reservoir and the Egyptian gas export agreement: On January 1, 2020, the household electricity tariff will be reduced by an average of 4.13%, and the household electricity tariff will be reduced by 5.13%.

The amount of the NIS reduction in 2020 will amount to NIS 1.3 billion, an average reduction of NIS 520 per household. During January, there may be further reductions in electricity rates.

The Electricity Authority has published its decision to reduce the electricity tariff. Following the annual update, the updated electricity tariffs will take effect in January 2020. The final tariff reflects a further reduction over the published hearing, following the approval of the Egyptian gas compromise and the actual first payment, as well as an update of the operating model of the pumped storage facility, which is expected to begin operation by 2020.

Photo: GPO

The causes of lowering electricity tariffs and their percentages of impact on consumer cost:

1. Reduction in coal prices - a total reduction of about 4.1% of the total costs in 2019.

2. Sale of the Alon Tavor power plant as part of the electricity company reform - a reduction of approx.

3.9%.

3. Future entry of a whale reservoir at significantly lower gas prices from the Tamar contract - reduction of

About 3.3%.

4. Egyptian Gas Compromise - Electricity Compensation Compensation for Egypt's Natural Gas Non-Supply - Reduction

Of about 1.4%.

Factors that partially offset the tariff reduction:

1. Massive increase in the entry of renewable energy and the addition of facilities replacing pollutant production -

Addition of about 3%.

2. Returns on costs from previous years - an increase of about 1.3%.

3. Offsetting the excise tax reduction on passing coal - an increase of 3.1%.