Infrastructure development or protecting the wallet: the dispute over water price hikes in 2027

The Water Authority Council decided on a 2.3% water tariff increase in 2027, contrary to the professional echelon's position that wanted a 5.7% increase for infrastructure investment. The dispute revolves around developing infrastructure versus protecting the consumer's pocket, with the planned increase adding about 3 shekels per month to a household.

The Water Authority Council decided on a moderate 2.3% water tariff increase in 2027, contrary to the professional echelon's position that wanted a 5.7% increase for infrastructure investment. The decision was passed by a majority of representatives from the Ministries of Interior, Agriculture, Energy, and a public representative, who argued that water is a basic commodity and a high increase would feed into inflation. On the other hand, representatives of the Water Authority, the Ministry of Finance, and the Ministry of Environmental Protection supported a broader investment, which would allow allocating 30 million shekels to the MATASH fund for guarantees for wastewater treatment facilities and implementing the conclusions of the Kendall report. The gap between the increases amounts to hundreds of millions of shekels per year. The planned increase will add about 3 shekels per month to a household, while a 5.7% increase would have added 5 shekels. The price of water in Israel is relatively low compared to Europe: 2.63 euros per cubic meter versus an average of 3.63 euros.