Israel Water Prices to Rise 2.3% in 2027

Israel's Water Authority Council has made a preliminary decision to increase water prices by approximately 2.3% in 2027. This rise is expected to add about 3.5 shekels per month to the water bill for an average family of five. The decision comes as the Water Authority anticipates an 835 million shekel increase in its expenses for 2027, largely due to fixed obligations. The council ultimately approved a tariff increase totaling 259 million shekels.

While most council decisions were unanimous, key votes passed by a narrow margin of four to three. Among these was the allocation of an additional 30 million shekels to a fund that provides guarantees for municipal water corporations' bank loans for wastewater treatment facilities. The council also decided against implementing recommendations from economist Eugene Kandel's commission. These recommendations had proposed factoring in a lower water loss rate to incentivize efficiency and reduce the return on capital for water corporations.

Representatives from the Water Authority, the Ministry of Finance, and the Ministry of Environmental Protection were in the minority. They argued that significantly larger investments are necessary to accommodate population growth and prepare for future droughts. Had their position prevailed, water prices would have increased by 5.74%, or about 8.5 shekels monthly for a family of five.

The majority, including a public representative appointed by Energy Minister Eli Cohen, believes current funding for water infrastructure is adequate. They also contend that water is a basic commodity, and price increases could fuel inflation.