Electricity Rates to Fall 2.4% in April

The Electricity Authority announced Sunday that prices will be lowered 2.4% in April.

The price cut for households will fall by 0.4% more than the original decision announced at the beginning of March, following an appeal by the Manufacturers Association due to the sharp fall in coal prices on world markets.

Unusually, this is the third electricity rate revision in about three months, when normally the electricity price is updated only once a year. The reduction is in addition to the 1.5% cut announced by the Public Utilities Authority (Electricity) last month, which was was due to Finance Minister Betzalel Smotrich’s decision to extend the excise duty exemption on coal.

However, the latest cuts have yet to offset the sharp 8.2% rate hike in electricity rates for household consumers, which came into effect at the beginning of 2023. Prime Minister Binyamin Netanyahu and Smotrich promised to cancel most of the price increases but in the meantime, most of the price increases will still remain in effect.

The Public Utilities Authority (Electricity) said in its announcement today, “The macroeconomic environment is not stable. For example, the interest rate, the price index, and the exchange rate, the rise of which and the risks arising from it partially offset the decline in international coal prices.”