Israel is also suffering from massive price increases for energy. In contrast to European countries, however, the reasons for the hike are domestic, since Israel has large natural gas fields. The Chamber of Commerce has a proposal. Red more on ‘VonNaftali’.
The suggestions is very simple: Finance the gap hike with income from the natural gas field and their royalities. But not only this. There is a massive mayhem within the bureaucracy and regulations.
Attorney Uriel Lin, president of the Association of Chambers of Commerce: “There is no reason for the businesses and the public in Israel to pay out of their own pockets for the chaos in the electricity sector, the failures of the various governments and the conduct of the electricity company – governance is also to ensure that decisions concerning the electricity sector are carried out“
The state should finance the expected increase in electricity prices at the beginning of 2023 from the wealth fund and the gas rewards. This is what the Association of Chambers of Commerce claims in preparation for the hearing to be held by the Electricity Authority.
In the position paper submitted today, the union claims that the energy sector in Israel is suffering from complete chaos, from the failed conduct of the various government ministries and deliberate foot-dragging by the electric company.
In accordance with the procedure, until tomorrow, Monday 12/19, the public can submit their comments regarding the intention of the Electricity Authority to increase electricity rates by 8.2% – a total additional payment of approximately NIS 2.1 billion per year.
This is in addition to the 12% increase carried out during 2022, says the press release of the Association of Chambers of Commerce.
Again, bureaucracy and poor governmental performance are reason for decline as today on VonNaftali reported concerning ‘Innovation‘.
Mashilot Now
According to Attorney Uriel Lin, President of the Association of Chambers of Commerce, “Today, everyone is talking about the magic word ‘Mashilot’. Governance is also to ensure that the government’s decisions regarding the energy sector are actually carried out by the electric company.“
In the position paper, the Association of Chambers of Commerce refers to the unhealthy competition that exists between the regulators and the government ministries operating in the field of energy and electricity in Israel.
“As of today, there are several parties that are involved regulatory in the management of the electricity market: the Ministry of Energy, the Ministry of Environmental Protection, the Electricity Authority, the Electric Company and the system manager. This causes competition frankness and contradiction in decision-making“, says Lin.
The bad or better non existing ‘Mashilot’ will cause additional costs of NIS 800;- for the average Israeli household.