MIFTAH
Monday, 22 July. 2024
 
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The Palestinian Authority and Israel have signed an agreement aimed to regulate electricity sale and purchase agreements between Palestinian Distribution Companies and the Israeli Electricity Corporation.

The agreement was reached on 30 October 2003 between representatives of the Palestinian Ministry of Energy and Natural Resources and Palestinian Energy Distribution Companies and representatives of the Israeli Ministry of Infrastructure, the Israeli Ministry of Foreign Affairs and the Israeli Electricity Corporation (“IEC”).

A Joint Paper of Understanding was also signed between the IEC and the Palestinian Ministry of Energy and Natural Resources witnessed by the European Commission for the negotiation of commercial agreements for the supply of electricity to the Palestinian Distribution Companies. The purpose of the commercial agreements is to lower the price and ensure the continuity of supply of electricity for Palestinian consumers.

Prior to the signing of these Agreements, Palestinians were paying among the highest amounts for electricity of any nation around the world as prices were imposed on a monopolistic basis, negatively affecting the development of the Palestinian electricity distribution sector. Palestinian electricity infrastructure is also substandard in relation to the sums of money paid for the electricity and in relation to the infrastructure in neighboring countries.

The Joint Paper also lists emergency electricity infrastructure projects of common interest that the European Commission intends to promote for funding by international financial institutions. The aim of the emergency infrastructure projects is to increase the infrastructural capacity of the Palestinian electricity network for the implementation of interconnection agreements with neighboring states, furthering the Euro Mediterranean Energy Ring. The benefits of the Euro Mediterranean ring will be even cheaper and safer supply of electricity from different sources to Palestinian consumers.

Upon signing the agreements, Omar Kittaneh, PA’s Deputy Minister of Energy and Natural Resources remarked, “The Agreements are a very positive development in rectifying the current situation and moving towards developing the infrastructure which will enable a future Palestinian state to ensure the supply of cheaper electricity to its consumers and businesses.”

 
 
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