Israel to Raise Water Prices by 2.3% in January Amid Shortage
Translated & summarized from N12 by baba
Israel's Water Authority Council approved a 2.3% increase in water tariffs set to take effect in January, despite professional recommendations for a larger hike to fund infrastructure. The decision comes amid a severe water shortage and drought warnings, with the OECD predicting extreme drought for Israel by century's end. The tariff adjustment will add an estimated 40-55 shekels annually to household expenses and could contribute to inflation.
The story in 5 lines · by baba
- Israel's Water Authority Council approved a 2.3% water tariff increase starting January.
- The decision was made against professional recommendations for a doubled increase.
- The rise aims to fund water infrastructure amid a severe national water shortage.
- Households will see an annual increase of 40-55 shekels in their water bills.
- The OECD warns Israel faces extreme drought conditions by the end of the century.
Israel's Water Authority Council has decided to increase water tariffs by approximately 2.3% starting in January. This decision was reportedly made against the recommendations of professional staff within the Water Authority, the Ministry of Finance, and the Ministry of Environmental Protection, who had advocated for a doubled increase to fund essential water infrastructure investments. The proposed rise comes as Israel grapples with a severe and ongoing water crisis, exacerbated by years of drought and delays in constructing new desalination plants. The issue gained public attention last summer when five of the six main desalination facilities were temporarily shut down due to algal blooms.
The Water Authority Council's decision, which is still a draft pending public comment, aims to reflect updated costs from water sources, desalination plants, and municipal corporations. The increase will apply uniformly to both basic water allocations and consumption exceeding that amount. This tariff adjustment is expected to add between 40 to 55 shekels annually to the average household's expenses. While a moderate rise for individual households, the increase in water prices could act as an inflationary driver, potentially impacting the costs of agricultural produce and industrial goods.
Behind the scenes, the Ministry of Finance, Ministry of Environmental Protection, and Water Authority had pushed for a steeper tariff hike to finance investments in water infrastructure, such as wastewater treatment facilities and local water corporations, and to encourage water conservation. The Ministry of Energy, however, reportedly opposed a larger increase, likely due to government concerns about further price hikes for households. The council also voted to reduce the amount of desalinated water to be purchased in 2027 and adjusted cost calculations related to the algal bloom incident, though the new tariff already accounts for significant state expenditures incurred this year due to the bloom.
This situation unfolds against the backdrop of a new warning from the OECD, which identifies Israel as one of the Mediterranean countries expected to experience the most severe worsening of long-term drought by the end of the century, potentially facing extreme drought conditions. The OECD report highlights the impact of climate change on water resources, an issue that has received limited public attention in Israel until the summer's desalination plant shutdowns.
Mentioned
