Israel Water Prices to Rise Slightly in 2027

Water prices in Israel are set to increase by approximately 2.3% in 2027, a decision made by the Water Authority Council with a narrow one-vote majority. This adjustment means a family of five will see their monthly water bill rise by about 3 to 3.5 shekels, significantly less than the proposed 8.5 shekel increase. The council rejected a proposal from representatives of the Water Authority, Ministry of Finance, and Ministry of Environmental Protection to raise tariffs by nearly 6%, which would have resulted in a larger financial burden on households.

The current tariffs already saw an increase of about 2.35% at the start of 2026. The base price for a cubic meter of water is currently around 8.5 shekels, with additional cubic meters costing approximately 15.6 shekels. If the approved decision stands, the cost per cubic meter will rise to about 8.7 shekels at the lower rate and approach 16 shekels at the higher rate. Final rates for 2027 will be published later this year, with new tariffs taking effect in January.

Israel's water system operates as a closed financial mechanism, with costs for production, desalination, transport, and treatment distributed among projected sales volumes. The Water Authority Council, comprising representatives from various ministries and a public appointee, reviews tariffs annually. For 2027, the system's expenses are expected to increase by over 800 million shekels. The council approved incorporating approximately 260 million shekels of these additional costs into the tariffs, leading to the 2.3% price hike. Some decisions, like allocating an additional 30 million shekels to a fund supporting wastewater treatment plant construction, passed with a four-to-three vote.

Officials advocating for a nearly 6% increase argued for substantial investments in water infrastructure to meet population growth and prepare for droughts. However, the majority on the council, including representatives from the Ministries of Interior, Agriculture, and Energy, believed infrastructure funding was adequate and that higher water costs would fuel inflation. The rising reliance on desalination, with about 70% of drinking water now coming from the sea, and the operational costs of facilities like Sorek-2, factored into tariff calculations.

To mitigate costs, households are advised to verify their water usage against their entitled subsidized volume and check if any additional allowances are correctly applied. Specific regulations govern water disconnections for debtors, requiring adherence to established procedures.