Mar 4, 2012

Will Rainy Winter Affect Water Prices

Baruch Hashem we have had a winter blessed with a bounty of rain. The level of the Kinneret is continuing to rise to levels we have not seen in many, many years (it should continue to rise  fut fut fut!!!).

I wonder, though, considering that the water prices were raised due to the sever water shortage we were suffering after years of drought, will the water prices now be knocked back down after our particularly rainy winter?

What I have noticed is that gravity does not apply to prices, as neither does the rule "what goes up must come down". When it comes to prices, while they might be qick to be increased for all sorts of reasons, they rarely come down, and when they do it is very slowly.

What say you?



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4 comments:

  1. I say that anyone who opens a discussion of water prices on his blog is all wet! :)

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  2. Also, I notice that the dating of my previous comment is 10 hours behind!

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  3. Two points:
    1) The increased price of water is due to the new technology that is being used for our water: desalination. Instead of simply having to pump the water (what was done until now) - we now need to "manufacture" the water and then pump it. We can't simply stop desalinating water due to one or two rainy winters.
    2) The population of Israel is growing by leaps and bounds. The population grows by approximately 3% per year. Rainfall does not increase by 3% every year - in fact, it usually is about average (when long term trends are considered). That being said, even if we will start having 10% more rain than the average during every rainy season, we will still have a water shortage. Desalination is a must, and needs to continue. The only way for Israel to survive is via desalination (or having massive rainstorms the entire winter - we will then have a shortage of space to store the water).

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  4. The water is still a long ways away from pre 2003 levels.

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