Electricity prices to drop 9.4% in 2015

Electricity prices for household use in Israel are to be lowered in the coming year by 9.4 percent, the electricity authority announced late Tuesday night.

On average electricity prices are to drop from January 1 by 11.1%, said the body that oversees Israel’s electricity services.

The current price for household power use of NIS 54.03 per kilowatt hour will go down to NIS 48.96 per kilowatt hour, which should result in a saving of NIS 500 ($127) per year for the average household.

National Infrastructure, Energy and Water Minister Silvan Shalom, together with former finance minister Yair Lapid, was behind the move, which 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 week, 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,” Silvan said.

The reduction is 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.