The Palestinian Authority owes NIS 400 million to the Israel Electric Company for failing to collect payment from Palestinian residents, Finance Minister Hamad Amar (Yisrael Beiteinu) said in response to a request from MK Orit Struck (Religious Zionism). He clarified that Israel will not forgive the debt Minister Amar added that he had instructed the tax authority to "coordinate with the Palestinian Authority an outline for the offsetting of the debt in the rating, from the tax money transferred to it."
The Israel Electric Company produces most of the electricity for the Arab residents of Judea, Samaria and Gaza.
Under the arrangements between Israel and the Palestinian Authority, it is the authority that is supposed to pay for the consumption of its residents.
Over the years, huge debts have accumulated to Israel on the part of the PA, which claims that it is unable to collect debts from residents who do not pay it.
Member of Knesset Orit Struck, Photo: Danny Shem Tov, Spokeswoman for the Knesset
Over the years, Israel has reached several agreements with the Palestinians, under which it has pledged to repay the debt.
The 2017 agreement stipulates that Israel will deduct from the tax money it transfers to the Palestinian Authority the amounts it owes it.
In 2019, then-Prime Minister Benjamin Netanyahu and Ministers Bennett and Kahlon approved what was defined as a special loan to the PA, designed to help it pay off its debts.
The Minister for Regional Development, Issawi Frij, recently stated that Israel must "act to stabilize the Palestinian Authority, at least economically, even at the level of debt write-offs."