Electricity importation: Another source of Palestinian fiscal leakage
Importing electricity from Israel is another source of loss of Palestinian fiscal resources and consumer welfare. When Palestinian electricity distributors (municipalities, village councils and distribution companies) fail to pay the Israel Electric Corporation, Israel deducts from the Palestinian National Authority’s clearance revenue and registers any remaining balances as debt owed to the Corporation, to be deducted from clearance revenue at later dates. Such deductions also cover sewage fees and water imports, and are referred to as net lending. They are deducted by Israel without the consent of or verification by the Authority, in a unilateral, non-transparent and unpredictable manner (World Bank, 2014b).Can you believe it? Israel insists that it gets paid for electricity, water and other utilities being provided, and it will deduct the money it is owed when the PA refuses to pay - all under existing agreements!
Obviously Israel shouldn't ever charge anything for power until the PA is good and ready to pay on its own. Maybe in 2025, maybe in 2050. But the check is as good as in the mail.
(h/t Irene)