Friday, March 29, 2013

// // 3 comments

Thanks for the Free Electricity, Suckers!

(Globes) Israel Electric Corporation is considering raising electricity rates to Israeli consumers to cover the debts of Palestinians, after Prime Minister Benjamin Netanyahu decided to release tax money owed to the Palestinian Authority (itself a lie and tax against the Jews to the Palestinians – info here), which Israel had withheld, in part to pay the Palestinian’s debt to the electric company.

Israel currently supplies all electricity needs to the West Bank. Palestinian customers receive the electricity through the Palestinian Authority and the Jerusalem District Electricity Company Ltd., each of which operate in different cities in the territories. The two entities' aggregate debt to IEC currently totals NIS 730 million (US$ 197.2 million debt) . Each month, IEC sends a warning letter about the debt, and it is in talks with the Palestinian Authority and the Jerusalem District Electricity Company, but no agreement has been reached on payment…

…following US President Barack Obama's visit to Israel last week, Netanyahu decided to release the withheld funds as a goodwill gesture to the Palestinian Authority.  If there is no alternative, the utility will have to record the debt in its books as lost debt and ask the Public Utilities Authority (Electricity) to recognize it as an expense to be covered by electricity tariffs.  A rough calculation estimates that a 3% electricity rate hike for one year is needed to cover the current debt in full, but this is not a long-term solution to the non-payment of the Palestinian Authority's debts.

Strangely if I don’t pay my electric bill, the electric company turns off my electricity and sends some big unpleasant men to collect their money.  But if the Palestinians don’t pay their bill… I have to???  Something seems strangely wrong with this picture.

3 comments:

chaim said...

and how does their proposed rate increase jive with the natural gas en route to them as we speak from the tamar gas well???

Josh said...

Chaim, the natural gas is supposedly going to prevent higher increases, not reduce costs :-(

There is also some warnings, surprisingly from the left, about the media being used to prepare the public to pay MORE because the army will be expected to patrol and defend these installations. I'm all for people making money, but as opposed to the Arabs whose countries profit, here it will be the tycoons.

Batya said...

The terrorists are getting free rides paid by Israeli citizens. Something really stinks here.

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