Full coverage· Economy· Updated 5 Nov, 22:36

Israel Water Prices to Rise 2.3% in 2027

The Water Authority Council has made a preliminary decision to increase Israel's water and sewage tariffs by approximately 2.3% starting January 1, 2027. The adjustment is expected to add between NIS 40 and NIS 55 annually to the average household's water bill, translating to about NIS 3 to NIS 4.5 per month. The proposed tariff hike is subject to public comment before receiving final approval.

3 newsrooms · 2 languages · since 5 Nov, 19:49

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Israel Water Prices to Rise 2.3% in 2027 — Illustration by baba

What happened

01Israel's water and sewage tariffs are set to increase by approximately 2.3% starting January 1, 2027, pending final approval after public comment.
02The tariff hike will add an estimated NIS 40 to NIS 55 annually to the average Israeli household's water bill.
03The Water Authority Council approved tariff increases totaling 259 million shekels to help cover an expected 835 million shekel rise in 2027 expenses.
04Professional staff from the Water Authority, Ministry of Finance, and Ministry of Environmental Protection recommended a higher 4.6% increase to fund infrastructure.
05A narrow 4-3 vote approved allocating 30 million shekels to a fund providing bank loan guarantees for municipal wastewater treatment facilities.
06The council rejected recommendations to lower the recognized water loss rate and reduce capital returns to incentivize water corporations' efficiency.
07The debate over infrastructure funding follows a water crisis in late August that shut down major desalination plants due to algal blooms.

The decision was made to help cover an anticipated NIS 835 million increase in the Water Authority's expenses for 2027, which are largely due to fixed obligations. The approved tariff increases will generate around NIS 230 million to NIS 259 million per year for the water sector. Additionally, the council approved a NIS 30 million allocation to a fund providing guarantees for municipal water corporations' bank loans for wastewater treatment facilities, which passed by a narrow 4-3 vote.

Professional staff from the Water Authority, the Ministry of Finance, and the Ministry of Environmental Protection had recommended a steeper 4.6% increase to fund essential water infrastructure investments, including wastewater treatment facilities and water conveyance systems. They argued that a larger rise was necessary to manage escalating costs and encourage conservation, and to address vulnerabilities highlighted by a late August water crisis that shut down major desalination plants. However, the majority of the council, with opposition to a larger hike from the Ministry of Energy, favored the more moderate 2.3% increase due to concerns about inflation.

Summarized by baba from the reports of 3 newsrooms. Updated 00:06

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