The Palestinian territories are highly dependent on energy imports due to the lack of domestic energy resources. Alongside the steady increase in electricity consumption, non-payment for electricity imported from the Israeli Electricity Corporation (IEC), the main supplier, has increased over the past few years, amounting to 58% of its total cost (equivalent to US$ 381.3 million in 2013).
Non-payment of IEC’s electricity bills by Palestinian electricity distributors, including municipalities, village councils and distribution companies remains a key challenge to the electricity sector and to the overall fiscal position of the Palestinian Authority. Outstanding payments owed to the IEC are either deducted from the PA’s clearance revenues by the Israeli Ministry of Finance and registered as “Net lending” or are accumulated as debt owed to the IEC.
This assessment aims to more precisely understand the sources and reasons for non-payment of electricity in the Palestinian Territories and to develop an action plan based on current programs and activities led by the Palestinian Energy and Natural Resources Authority and the donor community.
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