The Public Utilities Authority has issued its new base for electricity tariffs in 2008-2012 and made it available for a new public hearing. The agency predicts that electricity rates will decline as Israel begins using natural gas energy and updates to more efficient power stations.
An analysis by the Public Utilities Authority states that electricity production costs, excluding fuel, will likely rise by NIS 0.012 per kilowatt/hour. But the increase in the use of natural gas instead of other, more expensive fuels, and the introduction of more efficient power plants will reduce the fuel component in production costs by more than 10 percent over the coming years. Natural gas is due to provide 35 percent of Israel's electricity production within two years, up from 20 percent in 2008.