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Estimate: the price of electricity will decrease by about 6% starting from March Israel today

2023-02-28T11:10:16.778Z


The price of coal has fallen in the last three months by about 50%, which allows for a price drop regardless of the government's discount plan.


The Plenary of the Electricity Authority will meet tomorrow (Wednesday) to discuss the update of the electricity tariff for the consumer.

The official announcement regarding the decision will be published tomorrow.

The price of coal has fallen in the last three months by about 50% - from about $400 per ton to less than $200 today.

This significant decrease will allow the Electricity Authority to lower the electricity tariff by a significant rate - according to the calculations of the Association of Manufacturers - by about 6%.

The discount, if approved, is expected to take effect on March 1.

Photo: Yehoshua Yosef // The Electric Company,

Let's recall that the electricity tariff increased at the beginning of the year by 8.2% due to the increase in the price of coal in the world used to produce electricity, and then decreased by 1.5% at the beginning of February.

The discount was carried out by canceling the excise tax on coal as part of the government's program to reduce the price of food.

It should be noted that the government promised to curb 70% of the increase in the price of electricity that was recorded at the beginning of the year, but in practice the rate decreased by only 1.5%.

Now, if the tariff is reduced as estimated by the association, this will happen thanks to the drop in the price of coal in the world and regardless of the discount plan.

According to Dr. Ron Tomer, President of the Manufacturers Association, "We have been in an environment for half a year now where coal prices are significantly lower than the prices according to which the electricity tariff was determined in the last two updates.

We thank the Electricity Authority for convening to update the electricity tariff, but also say it's a shame it didn't happen before.

We expect that they will make the update carefully, but not in an overly conservative line in order to return the electricity tariff to where it should be."

According to him, "I expect a drop of at least 6% in electricity rates, and that's only because of the coal even before we took into account the possibility of lowering electricity prices as a result of revenues from the sale of the Eshkol power plant."

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Source: israelhayom

All news articles on 2023-02-28

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