The Electricity Authority is announcing an update in prices of 5% from February

The Electricity Authority is announcing an update to the 2022 electricity tariff for a public hearing. According to the Authority, the total tariff for the domestic consumer is expected to rise by 4.9%. The cost of energy to a home consumer without fixed costs is expected to rise from 43.3 cents per kWh to 45.68 cents per kWh. The Authority will make a final decision after public comments.
According to the Authority, the main factor in the increase in the tariff is the global coal price, which has risen by more than 100% over the past year. The total selling cost is expected to be about NIS 3.24 billion, an increase of about NIS 9.1 billion from the selling cost in the past year.
About 23% of total economic production is made using coal. However, starting in the coming year the rate of coal production is expected to decline gradually until a complete cessation of its routine use in 2026. The tariff for 2022 already embodies a 20% reduction in the amount of coal used to generate electricity relative to coal consumption in the past year.
The Authority also claims that the effect of the rise in coal prices has moderated due to the fall in the dollar exchange rate, but in total has led to an increase of about 11% in the cost of selling for the purpose of calculating the tariff. The rise in the consumer price index and an increase in the amount of renewable energy integrated into the economy have led to a further rise in selling costs.
A number of other factors led to a moderation in the increase in the electricity tariff, including the profits from the sale of the Hagit East power plant, which will be transferred in full to the electricity consumers as part of the current tariff update and reduced the known cost by 5%.