What are the potential solutions for addressing electricity debts?
Written by: Salah Al-Deen Mousa, a Palestinian Lawyer
In its ruling decision in 2008, the Palestinian High Court of Justice permitted what is prohibited by constitutions and international treaties when it upheld the Palestinian government's requirement that a debt clearance certificate be presented to complete any transactions for citizens. This certificate serves to prove that individuals have no outstanding debts to electricity companies, water authorities, or municipalities responsible for managing these vital services. Following this ruling, the legal debate surrounding the issue became irrelevant, as the court's decision is final and binding.
Although the court issued its ruling in 2008, successive governments have gradually diminished the use of this requirement for completing various transactions. Over time, the issue fell out of public discourse and was largely forgotten. Recently, however, it resurfaced when a memo issued by Dr. Dawas Dawas, Secretary-General of the Cabinet, circulated on social media. Dated August 29th, 2024, the memo was directed to the Palestinian Ministries of Finance, Interior, National Economy, Telecommunications and Digital Economy, Agriculture, and Transportation, as well as the Civil Affairs Authority and the General Administration of Crossings. The memo was not founded on a new cabinet decision; instead, it was based on resolutions from the Council of Ministers in 2007 and 2014. This suggests that the current government did not issue a new decision. The memo was issued in response to a request from the Electricity Regulatory Council, aiming to adopt the clearance certificate provided by electricity distribution companies.
The memo in question does not align with the authority of the Secretary-General of the Cabinet, regardless of his respected position. It should have been based on either a decision from the Prime Minister to approve the request from the Electricity Sector Regulatory Council or new considerations that necessitate a new cabinet resolution to govern this matter within a legal framework. The decisions referenced in the memo issued by previous governments, address the electricity and water sectors but do not specifically mention electricity distribution companies.
As such, the issuance of this memo—whether it originated from the Electricity Sector Regulatory Council, the Secretary-General, or both—represents the introduction of a new directive that applies solely to one sector. This gives priority to electricity distribution companies over other municipal councils responsible for managing electricity services, while neglecting the water sector and other areas that require attention.
We would also like to remind the esteemed Secretary-General that the 2007 cabinet decision aimed to collect all outstanding debts owed by employees through various ministries and governmental departments. However, following the backlash that arose from this decision, Dr. Salam Fayyad's government stated that it would refrain from collecting any funds directly through the Ministry of Finance.
In light of the public outcry regarding the memo—widely interpreted as a directive from the current cabinet—the Electricity Regulatory Sector issued a clarification on October 8th, 2024. In this statement, they stressed that no new cabinet decisions had been made and that the memo does not apply to all citizens. Instead, it pertains only to a specific group defined by a cabinet decision from 2014. However, the statement did not specify who these groups are or detail the content of the 2014 cabinet decision.
While we recognize that the issue surrounding the memo has gained more attention than it may warrant, especially in light of the current exceptional circumstances, it’s crucial to understand that the timing of such decisions can have repercussions far greater than the decisions themselves. Thousands of workers have lost their jobs due to the ongoing aggression, and many employees have not received their full salaries for years. Unemployment across Palestine has become widespread, and poverty is escalating at an alarming rate. There are also significant challenges and questions arising regarding the implementation of this memo, particularly concerning the ability to move between cities amid checkpoints and the blockade imposed on towns, villages, and camps across the West Bank, which complicates the process of obtaining the requested clearance certificate.
It is vital for the relevant authorities to clarify that travel restrictions should not be imposed solely due to outstanding debts unless backed by a judicial decision. A simple notice or document from the electricity company regarding an individual should not be deemed an irrefutable piece of evidence for legal purposes. The Palestinian Ministry of Interior should issue a statement indicating that obtaining birth certificates for children, passports for sons and daughters, and travel documents for spouses and relatives should not be contingent upon the debtor's status unless the creditor has secured a definitive court ruling affirming the validity of the debt and its alignment with their claims.
The right to movement and access to essential services is enshrined in the Palestinian Basic Law, as articulated in Article 11, Paragraph 2, which states that " It shall be prohibited to arrest, search, imprison, restrict the freedom, or prevent the movement of any person, except by judicial order pursuant to the provisions of the law. The law shall determine the period of provisional detention. Imprisonment or detention shall only be permitted in places that are subject to laws related to the organisation of prisons." This principle is further reinforced by Article 20 of the Basic Law. These questions and challenges must be acknowledged and addressed with clarity and urgency.
While we believe the 2008 decision by the Palestinian High Court, which permitted actions contrary to international treaties and constitutional norms, was constitutionally flawed, it has become a reality we must now confront. This situation calls for a pragmatic approach to tackle the existing challenges, particularly considering the troubling fact that Israel deducts funds from the tax revenues to cover the electricity debts. When addressing such a complex issue, it should not be one-sided or framed merely as the government acting as a tax collector for private interests. Citizens primarily focus on outcomes and consequences rather than the underlying reasons. In contrast, as lawyers and advocates for human rights, we prioritize principles of justice and fairness, viewing these developments as violations of fundamental rights.
At the same time, we recognize the right of companies providing essential services, such as electricity and water, to collect their dues. This leads us to a crucial question: what is the solution? What proposals can be put forth to create a viable pathway to resolve this longstanding dilemma, which has persisted since the Second Intifada—now nearly 24 years?
To take a constructive approach and avoid escalating the situation, we suggest focusing on solutions. We recommend several steps for developing a comprehensive national plan to address the debt crisis, which could include the following:
1. A neutral committee should be established, comprising independent entities not affiliated with electricity distribution companies. This committee will assess the debt situation, document it accurately, and verify the figures currently in circulation, which may be correct, inflated, or in need of adjustment. Once the committee completes its report, it will submit it to the Electricity Regulation Sector, which will then forward it to the Prime Minister's office for action. This process should be guided by a comprehensive executive plan that takes into account the existing circumstances, ensures the integrity of procedures, and protects the fundamental rights of citizens while also respecting the financial rights of the companies involved.
Some may question whether a single committee can effectively address the needs of multiple distribution companies. The solution is simple: we can establish separate committees for each distribution company, which will streamline and expedite the necessary work.
2. The established committee or committees should provide accurate and verified debt statements, accompanied by an interactive map that highlights the cities, villages, and/or camps where these debts are most concentrated. They should also include details about the nature of the obligations owed by both individuals and entities to the electricity companies.
3. A credible government agency, established in accordance with established protocols, should carry out a thorough assessment of the assets, properties, and financial circumstances of individuals or entities indebted to the companies. This evaluation should determine whether these debtors are genuinely unable to meet their obligations or are intentionally evading payment. This process must adhere to legal standards for handling sensitive financial information and should be conducted as a one-time effort based on judicial mandates, with oversight from the public prosecution.
4. Electricity distribution companies should persist in installing prepaid electricity meters at no cost, supported by grants from allied countries. This approach can effectively reduce instances of evasion and theft while contributing to a decrease in overall debt. Furthermore, it would be beneficial to implement discounts on outstanding debts with each meter recharge, akin to the practices employed by various municipalities and joint service councils for waste management fees.
5. It is essential to conduct a comprehensive assessment to accurately identify the number of business owners, companies, and industrial establishments that have moved or rented warehouses within the refugee camps to evade electricity bills, placing an undue burden on ordinary citizens. We believe that working in partnership with the local committees in the camps is crucial for effectively addressing and holding accountable those who exploit this situation to avoid paying for electricity services.
6. Collaborate with local committees in refugee camps to designate specific monthly funds from the electricity companies for the development and essential needs of the camps. This initiative could be part of a national campaign to connect camp residents to the electricity grid using prepaid meters, ensuring that the interests of all stakeholders are met.
7. Electricity companies should actively enhance their collaboration with local communities to address energy waste and promote the adoption of alternative energy sources. By offering incentives, they can encourage indebted individuals—especially factory and industrial facility owners—to engage with electricity distribution companies and settle their debts by transitioning to alternative energy solutions.
By implementing these straightforward ideas, we can make meaningful strides and address challenges that have lingered for years. Instead of focusing on individual cases and burdening ministries with debt clearance requests—leading to legal and ethical debates—we should address past injustices and the harmful effects of occupation. This way, we can work toward comprehensive national solutions, rather than becoming mired in complaints that weaken our resilience and future on this land.