Starting July 1st, the price of water in Israel will rise by 1.6 percent, a much lower increase than initially planned by the Water Authority, thanks to the intervention of Energy Minister Eli Cohen. Initially, an approximate eight percent hike was intended. This reduction will only affect the consumer price index for July by increasing it by 0.05 percent, translating to an average home consumer's monthly water and sewer bill increasing by about NIS 2.2.
Despite Israel's advanced water and sewage infrastructure, the country still boasts some of the lowest water tariffs among OECD nations. Approximately 70 percent of Israel's drinking water is produced through seawater desalination, which is more expensive than natural water. The Water Authority expects to invest around 5.8 billion shekels in 2024 and 5.5 billion shekels in 2025 into the water sector, financed through water tariffs without government support.
Most of the planned increase was avoided through various measures such as utilizing proceeds from the sale of the Mekorot company's Ashdod desalination plant and adjusting past accounts with the company. Additionally, a drop in desalinated water purchases in 2024 due to a favorable winter season also contributed to the lower increase.
As per the latest update, the low rate for a known quantity of water will rise to NIS 8.082 per cubic meter from NIS 7.955, while any additional quantity will increase to approximately NIS 14.834 per cubic meter from NIS 14.6. An average family of four consuming around 16 cubic meters per month at a cost of about NIS 142 will now pay about NIS 144.
This rate change is open to public hearing and could be updated further. In accordance with Israeli water law, which mandates water tariffs to be updated biannually, another review is scheduled for January 2025. The Water Authority aims to continually optimize the various water suppliers and reduce costs, potentially resulting in further tariff changes.
Water prices in Israel saw a 3.3 percent rise in July of last year and a one percent rise in January this year, despite Prime Minister Benjamin Netanyahu's promise to cancel any water price hikes in the past year.
- The current infrastructure and cost management measures taken are part of broader strategies aimed at maintaining efficiency and affordability in water supply.
- Public transparency and regular updates are critical components in the process, ensuring that consumers are well informed about any changes in their water tariffs.