Price of electricity is expected to decrease by 3%-4% in August or September

The price of electricity is expected to decrease by 3%-4% in August or September. This is despite the fact that the electric company opposes the discount. This coming Thursday, the Ked Electricity Authority plenum will meet to discuss the rate of reduction, which will be made possible mainly in light of the success of the electricity company's tender for the sale of the power plant at the Eshkol site, a process that is expected to be completed within the next month.
Also, the discount will be possible following the continuation of the downward trend in coal prices in the world. This, is when in Israel 23% of the electricity is still produced using coal, which became very expensive during the Russia-Ukraine war at a rate that even reached 200%.
The Eshkol station is the fourth station to be sold as part of the "reform in the electricity sector". Starting in 2020, the Electricity Authority decided to transfer the entire surplus from the sale of the stations to consumers. This, is after financing the expenses of the electric company, the cost of the assets, and the land.
According to the Authority's data, in 2020 the sale amount was NIS 1.9 billion and the refund amounted to NIS 1 billion. In 2021, the sale amount reached NIS 4.3 billion and the refund to consumers reached NIS 1.2 billion. In 2022, the amount of the sale amounted to NIS 1.6 billion and the refund amount reached NIS 1.2 billion.
The Electricity Authority stated that the method of reduction will be determined in accordance with the methodology and maintaining the sequence of recognition in the sale of power plants that the Authority previously determined, and dictated the previous reductions. During the last two years, when following the increase in coal prices, the authority had to impose the full cost on the electricity consumers.