As we announced a month ago, the electricity tariff could rise by a double-digit rate of 13%.
The plenum of the Electricity Authority will convene to discuss the issue this coming Sunday, and the final decision has not yet been made.
It may be decided to spread the increase in prices over a number of "payments" as was done in 2012 when the electricity tariff soared due to disruptions in the supply of natural gas from Egypt.
The main reason for the apparent rise in prices is a jump in coal prices resulting from the prolonged war between Russia and Ukraine.
Although the electricity tariff is announced at the beginning of the year, abnormal fluctuations in fuel costs (above 5.5%) require the Electricity Authority to make updates during the year as well.
The electricity tariff is determined by the Electricity Authority in accordance with changes in the mix of fuels used to generate electricity and other expenses.
The government can intervene in the electricity tariff by changing the amount of excise tax on coal.
Recall that on April 12 this year, the Electricity Authority reduced the tariff by 2% following the state's waiver of excise duty on coal, in accordance with the government's plan to reduce the cost of living of the government.
Since the excise tax has already dropped to a level close to zero, this time the government's ability to intervene will be extremely limited.
"The bullets in this gun have already run out," a source in the Electricity Authority told Israel Today.
According to the Knesset Research and Information Center document, the economic cost of not closing the coal-fired stations by June 2022 is estimated at NIS 1 billion for 2022. In other words, this increase in the electricity tariff could have been saved in part Calculate renewable energies or natural gas.
Furthermore, in 2023 an additional excess amount of coal use of about 900,000 tons is expected, so that this will be reflected in additional cost to the electricity economy due to the non-closure of the coal-fired stations, assuming that the price of natural gas will remain significantly lower than the price of coal.
The president of the Manufacturers' Association and the chairman of the presidency of employers and businesses in Israel, Dr. Ron Tomer, commented on the sharp rise in electricity tariffs: "Raising the electricity tariff is not a fate.
There is no justification for this and it can be moderated.
This is a further increase in production costs for industry and all businesses.
You can think of solutions that will moderate the increase.
The excess cost of coal, which is supposed to be the reason behind the increase, could have been spread over several years, thus avoiding a sharp increase in tariffs, since in any case the IEC is expected to stop using coal in 2026.
In addition, the State of Israel can return its gas royalties back to the electricity sector, thus moderating the increase in tariffs.
There are solutions - you just have to implement them.
I call on the Israeli government to act responsibly, and to prevent the increase in electricity tariffs, which could seep into the economy and lead to further increases. "
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