Electricity prices are set to drop by close to 10 percent per household, the state-run Electricity Authority announced Thursday, with the price reduction officially taking effect on February 1, 2015.
The current price for household power use of NIS 0.54 per kilowatt hour will go down to about NIS 0.48 per kilowatt hour, which should result in an estimated saving of NIS 500 ($127) per year for the average household.
The drop in price was initially set to take effect on January 1, but the markdown was postponed in order to allow opponents of the move to express their opinions in a hearing set to take place in mid-January, Ynet reported.
Including electricity consumers other than households, the price drop is expected to result in an across the board savings of 12% on average.
The price reduction was made possible thanks to the cheaper cost of electricity production after the Israel Electric Corporation began using natural gas from Israel’s offshore Tamar gas field.
Speaking earlier this month, Infrastructure Minister Silvan Shalom said the change had been in the works for some time and would help industry by cutting production costs.
“I am pleased to announce to all consumers in Israel another major move that will affect the pocket of each of us,” Shalom said.
The expected reduction would be the first time electricity prices have gone down in three years.
According to the report, water prices are also expected to go down by 10% in the coming year.
Adiv Sterman and Stuart Winer contributed to this report.