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ISRAEL - National study<br />

Figure 3 Israel electricity consumption per US$1000 of GDP<br />

Table 5 shows the trends of electricity usage by customer class since 2001. (Note that all<br />

customer classes are eligible for the Time-of-Use (T.O.U.) tariff, and all customers<br />

consuming more than 60,000 kWh annually are required to be billed according to that tariff).<br />

Table 5 Annual Electricity Consumption by Sector: 2001-2005<br />

Source: Israel Electric Corporation 2005 Statistical Report<br />

Table 6 indicates the annual average price per kWh expressed in US cents per kWh (at yearend<br />

US dollar-shekel exchange rates). When combined with the consumption data above, it<br />

is apparent that overall electricity demand is not very responsive to price. In fact, the only<br />

clear evidence of price elasticity is displayed by customers recently switched to Time-of-Use<br />

tariffs; these customers have shifted portions of their consumption to non-peak hours.<br />

Year Residential<br />

Table 6 Annual average electricity price (in US cents per kWh)<br />

Public &<br />

Commercial Agricultural Industrial<br />

Water<br />

Pumping Bulk<br />

Total<br />

Consumption<br />

1995 8.5 8.2 7.0 6.8 6.1 6.5 7.6<br />

1996 8.4 8.0 6.9 6.8 5.9 6.4 7.5<br />

1997 8.3 8.1 7.1 6.8 6.1 6.5 7.5<br />

1998 7.1 6.9 6.1 5.8 5.6 5.6 6.4<br />

1999 7.6 7.3 6.4 6.2 5.9 5.9 6.9<br />

2000 8.0 7.8 6.9 6.5 6.3 6.3 7.3<br />

2001 7.3 7.0 6.1 5.9 5.7 5.7 6.6<br />

2002 7.8 7.5 6.5 6.2 5.9 5.9 7.1<br />

2003 9.1 8.6 7.4 6.9 6.7 6.7 8.1<br />

2004 9.8 9.3 7.9 7.5 7.3 7.3 8.7<br />

2005 9.8 9.3 8.1 7.7 7.4 7.4 8.8<br />

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