News Briefs

  אב 8, 5771 , 08/08/11

Erdan: No Need to Raise Prices Over Electricity Hike

Environment Minister Gilad Erdan slammed Shraga Brosh, head of the Israel Industrialists' Association, for saying that Monday's increase in electricity prices would cause a rise in prices throughout the economy. Although electricity prices are to go up about 10%, Erdan said, there was no reason for manufacturers or retailers to pass that increase along to consumers, since they did not reduce their prices last year, when electricity prices were cut by 12%.

“A responsible economy can absorb a temporary increase that will only be instituted for a short time, without passing the costs on to consumers,” Erdan wrote in a letter to Brosh. Officials said that the price of electricity will begin to go down as soon as natural gas from the underwater reservoir off Israel's coast begins to be delivered to the Israel Electric Company in late 2012.

Other archived news briefs:Aug 08 2011, 06:58 PM, 8/8/2011