It should be noted that before November 2009, the European Union (EU) used
to pay 50 million NIS monthly for the cost of the industrial fuel supplied
from Israel to the Gaza power plant.
In November 2009, the EU announced its
suspension of the direct funds used to pay the cost of the industrial fuel.
The EU started to pay those funds to the PNA which in turn pledged to pay
for the cost of the industrial fuel needed
for the operation of the power
plant. The Palestinian Energy Authority in Ramallah used funds from its
budget to pay for the cost of the needed industrial fuel while, on its part,
GEDCO transferred the money it collected from power consumers in the Gaza
Strip to the Energy Authority in Ramallah. However, the Energy Authority in
Ramallah reduced the financial coverage for the industrial fuel, claiming
that the money sent by GEDCO was not sufficient to cover the cost of the
industrial fuel needed for Gaza power plant. Over the two past years,
Palestinians in the Gaza Strip suffered power outages between 6 and 12 hours
a day. In April 2004, the Energy Authority in Gaza and the Energy Authority
in Ramallah reached an agreement that GEDCO would transfer $ 4 million to
the Energy Authority in Ramallah to be used to cover the cost of the
In January 2011, the Energy Authority in Gaza stopped
importing industrial fuel from Israel, and imported fuel from Egypt through
the funnels as technicians in the Energy Authority managed to utilize the
Egyptian fuel to operate Gaza Power plant.