Assessment and Action Plan to Improve Payment for Electricity Services in the Palestinian Territories
The Palestinian Territories (West Bank and Gaza Strip) are highly dependent on energy imports from neighboring countries because of its lack of domestic energy resources. The Israeli Electricity Corporation (IEC) is the largest supplier of electric...
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| Format: | Economic & Sector Work |
| Language: | English en_US |
| Published: |
Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2014/11/23040668/west-bank-gaza-assessment-action-plan-improve-payment-electricity-services-palestinian-territories-study-electricity-sector-contribution-net-lending http://hdl.handle.net/10986/21511 |
| Summary: | The Palestinian Territories (West Bank
and Gaza Strip) are highly dependent on energy imports from
neighboring countries because of its lack of domestic energy
resources. The Israeli Electricity Corporation (IEC) is the
largest supplier of electricity to the Territories,
supplying around 88 percent of its total electricity
consumption. In this context the Palestinian Authority (PA)
has been actively engaged in a comprehensive reform of the
electricity sector to increase its overall efficiency,
bringing in the commitment and involvement of all
stakeholders and resulting in the creation of a
well-structured electricity market. Alongside steady
increase in electricity consumption, however, non-payment
for electricity imported from the IEC has increased over the
past few years, amounting to 58 percent of its total cost.
The non-payments or partial payments of these bills create
deficient for the IEC, which then leads the Israeli
government to proceed with monthly deductions from the
clearance revenue, thus accruing as debt. This assessment
aims to precisely understand the sources and the reasons for
non-payment of electricity in the Territories and to develop
an action plan based on current programs and activities led
by the Palestinian Energy and Natural Resources Authority
(PENRA) and the donor community. The impacts of non-payment
for electricity on the complete financial payment cycle are
assessed in detail. An overview of the Palestinian
Electricity Sector is provided in Chapter 2, where the
set-up of the sector and the existing framework are
explained. Chapter 3 consists of analysis and key findings
from the data collected from stakeholders during the review.
The main factors contributing to non-payment are electricity
losses, collection levels, level of purchase and sales
tariff, governmental subsidies, and efficiency and
transparency of sector participants. Chapter 4 concludes
with a summary of analysis, and Chapter 5 discusses the
Palestinian Authority's action plans and current donor
programs, as well as concluding the assessment. The report
is accompanied by appendices, tables, diagrams, charts, and maps. |
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