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Economic & Sector Work

Assessment and Action Plan to Improve Payment for Electricity Services in the Palestinian Territories

ACCOUNTING ACTION PLAN ACTION PLANS AFFORDABILITY AFFORDABLE PRICES AMOUNTS OWED APPROACH ARREARS BALANCE BALANCE SHEET BANKS BUYER CAPACITY-BUILDING COLLECTION OF PAYMENTS CONSOLIDATION CONTROL SYSTEM COPYRIGHT COST OF ELECTRICITY CUSTOMER BEHAVIOR CUSTOMER PROFILE CUSTOMER SERVICE CUSTOMS DATA ANALYSIS DEBT DEBTS DEFICITS DEMAND FOR ELECTRICITY DIESEL DISTRIBUTION NETWORK DISTRIBUTION SYSTEMS DOMESTIC ENERGY DOMESTIC ENERGY RESOURCES DONOR SUPPORT E-MAIL ECONOMIES OF SCALE EIB ELECTRIC POWER ELECTRIC POWER COMPANY ELECTRIC UTILITY ELECTRICITY ELECTRICITY BILL ELECTRICITY BILLS ELECTRICITY COMPANY ELECTRICITY CONSUMPTION ELECTRICITY CORPORATION ELECTRICITY COST ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION COMPANIES ELECTRICITY DISTRIBUTION COMPANY ELECTRICITY DISTRIBUTOR ELECTRICITY DISTRIBUTORS ELECTRICITY GENERATION ELECTRICITY GRID ELECTRICITY LAW ELECTRICITY MARKET ELECTRICITY NETWORK ELECTRICITY NETWORKS ELECTRICITY PAYMENT ELECTRICITY PRICE ELECTRICITY PRICE INCREASE ELECTRICITY PRICES ELECTRICITY PROVIDERS ELECTRICITY REGULATION ELECTRICITY REGULATOR ELECTRICITY REVENUES ELECTRICITY SALES ELECTRICITY SECTOR ELECTRICITY SECTOR REFORM ELECTRICITY SERVICE ELECTRICITY SERVICES ELECTRICITY SUPPLIERS ELECTRICITY SUPPLY ELECTRICITY TRANSMISSION ELECTRICITY TRANSMISSION COMPANY END CUSTOMERS END USERS EQUIPMENT EXCHANGE RATE EXPENDITURES FINANCES FINANCIAL DATA FINANCIAL INVESTMENT FINANCIAL SYSTEMS FIXED RATES FUEL GEOGRAPHICAL AREAS GRID CONNECTION HOUSEHOLD INCOME HOUSEHOLDS INSPECTIONS INSTALLATION INSTITUTIONAL DEVELOPMENT INSTITUTIONAL REFORM INTEREST RATES INTERNATIONAL BANK INVESTMENT BANK KEY CHALLENGE KEY PERFORMANCE INDICATORS LAW ENFORCEMENT LICENSE LICENSES MATERIAL MEDIA CAMPAIGNS MUNICIPALITIES NATURAL GAS NATURAL RESOURCES NETWORK CONNECTION NETWORKS OPERATING COSTS OPERATIONAL COSTS OUTSTANDING DEBT PAYMENT DATA PERFORMANCE INDICATOR PERFORMANCE INDICATORS PERFORMANCES PILOT PROJECT PILOT PROJECTS POWER POWER COMPANY POWER PLANT POWER SHORTAGES PRICE OF ELECTRICITY PRIVATE SECTOR PROCUREMENT PROFIT MARGIN PROTOCOL PUBLIC UTILITY PURCHASE OF ELECTRICITY QUANTITY OF ELECTRICITY QUERIES REAL-TIME DATA RECEIPT REFUGEE REFUGEE STATUS REGULATORY ENVIRONMENT REGULATORY FRAMEWORKS RENEWABLE ENERGY RESULT RESULTS SAVINGS SECURE ACCESS SOURCE OF INCOME SUBSIDIARY SUPPLY CHAIN TARGETS TARIFF LEVELS TARIFF STRUCTURE TECHNICAL ASSISTANCE TELEPHONE TIME PERIOD TRANSMISSION UNPAID BILLS USES VILLAGE VILLAGES VOLTAGE WEB WHOLESALE PRICE
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Washington, DC
Middle East and North Africa | West Bank and Gaza
2015-02-26T14:02:18Z | 2015-02-26T14:02:18Z | 2014-11-25

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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