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A Palestinian man lighting a water pipe using candlelight at a Gaza cafe Sunday as power outages continued in the Strip. (AP)
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EU: Fuel aid for Gaza hinges on Hamas vow not to tax electricity
By News Agencies

The European Union stopped paying for fuel shipments to the Gaza Strip's main power plant over concerns that Hamas would tax electricity to fund its government in the territory, EU officials said on Monday.

"We have received information that Hamas is planning to introduce taxes on electricity bills and this will not allow us to continue paying for the fuel," a senior EU official said.

He said the EU would be ready to resume the payment of the fuel once it received assurances that Hamas would not siphon off funds from electricity proceeds.

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"We need to make sure that our aid is exclusively for the benefit of the population," the EU official told Reuters.

One of Palestinian Authority Chairman Mahmoud Abbas' first decrees after Hamas seized control of Gaza in June was to exempt its 1.5 million residents from paying taxes, a move designed to keep Hamas from collecting any of the local revenues.

The Gaza power plant shut down operations at midday on Sunday, causing widespread blackouts, after the EU halted its payment for fuel provided by Israeli company Dor Alon Energy.

"We're ready to resume payments within hours once we have assurances that these taxes will not be introduced," EU spokeswoman Antonia Mochan said.

She added the EU executive pays for 25-30 percent of the overall electricity supply to the Gaza Strip, worth $8.75 million a month.

A senior official in the Hamas administration in Gaza said the EU's concerns were unfounded.

"There is no new tax and we have no plans to introduce any new tax on electricity bills. We are ready to give all the assurances needed," the Hamas official said.

Kanaan Abaid, deputy chairman of the Palestinian Energy Authority, said none of the revenues generated at the plant had reached Hamas or its administration in Gaza. "Nothing goes to Hamas," Abaid said.

The shutdown was another blow to the long-suffering residents of the Gaza Strip, where the Islamic group Hamas has been governing, largely under international isolation, since June.

The power plant already cut electricity to large swaths of Gaza last week after Israel closed a fuel crossing into the coastal territory, citing security concerns.

Israel reopened the passage Sunday, but Dor Alon said the European Union had instructed it not to deliver new supplies because it would not guarantee payment.

The EU said it had decided on Thursday that it would suspend the payments for security reasons, particularly due to tensions at the crossing points into Gaza.

Abbas' government blames Hamas for power shortage
Abbas' government, formed in the West Bank after Hamas took over Gaza, charged Hamas with responsibility for the power shortage.

"The EU ceased payment because Hamas took over the electric company and started collecting the revenues and taking them to its pocket," Palestinian Information Minister Riad Maliki told reporters at a press conference Sunday.

In turn, Hamas lawmaker Yehia Musa accused Abbas of a dirty conspiracy to persuade international donors to cut off electricity to Gaza in an attempt to discredit Hamas.

European officials were caught off guard by the power shortage, mistakenly believing the plant had enough fuel for another two days, an EU official told The Associated Press. The official spoke on condition of anonymity according to EU regulations

Gazans initially were unfazed by the outages, because power reserves are always so thin that consumers are used to living without electricity for about five hours a day. But as the shortages dragged on for a third straight day, nerves began to wear thin.

The din of private generators outside every shop on Gaza City's main commercial street filled the air as Naim Hamdan, a civil engineer, recounted how he sent home his 25 employees to conserve fuel. Grocery store owner Fawaz Khalil said NIS 3,000 worth of cheese and milk spoiled because his generator wasn't powerful enough to keep his refrigerator cold.

"People have started coming to ask for candles and flashlights," Khalil said. I hope that selling candles and batteries and flashlights will help me make up for the loss of the cheese and milk."

Since Hamas came to power in Gaza two months ago, Israel and Egypt have sealed the border crossings into Gaza except for vital humanitarian aid. The international community has largely isolated Hamas while embracing Abbas' West Bank government, hoping to prevent further gains by Islamic militants.

The closure led the UN to warn last week that Gaza will soon become entirely dependent on foreign aid and face disastrous consequences if the territory remains sealed off.
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  1.   What no complaint that EU is racist or hard-hearted? 14:18  |  Margie in Tel Aviv 20/08/07
  2.   With or without power the Gazans remain in the dark ages 14:20  |  Murray of Montreal 20/08/07
  3.   Margie # 1 14:54  |  Stephen 20/08/07
  4.   Electricity is not the way of Islam 15:02  |  Gili 20/08/07
  5.   "EUROPEAN UNION SAYS --" Do not tell CFOOL 15:02  |  PETER SM 20/08/07
  6.   What`s the difference? 15:03  |  Cynical 20/08/07
  7.   Murray of Montreal...you took the words right out of my mouth! 15:23  |  Nechama 20/08/07
  8.   Thought they have power for 2 dasy 15:25  |  Cristian 20/08/07
  9.   Will Gazans rise up against Hamas ! 15:25  |  redmike 20/08/07
  10.   LET THERE BE LIGHT, AFTER TERROR STOPS 15:36  |  * BEN JABO 20/08/07
  11.   So let me get this strait. 15:39  |  Lavy 20/08/07
  12.   Gaza Electricity 15:49  |  Chris 20/08/07
  13.   no electricity for Terror 15:51  |  sam 20/08/07
  14.   Hamas Steals Electricity Revenue For Weapons 16:10  |  Bill Foonman 20/08/07
  15.   To Nathalie Durson 16:12  |  Real Swiss 20/08/07
  16.   How elegant! Hamas taxing gifts. 16:18  |  S 20/08/07
  17.   The EU is EeeeeeUuuuuuuuuWY!!!! 16:20  |  Lee 20/08/07
  18.   What? Hamas, This Paragon of Virtue Taxing 16:24  |  Eli 20/08/07
  19.   Let Hamas supply the Gazans with candles.. 16:26  |  maurice 20/08/07
  20.   Gazans are starving/3000 NIS worth of cheese and milk? 16:38  |  Richard S 20/08/07
  21.   Hamas should stand up to the EU! 16:42  |  Murray of Montreal 20/08/07
  22.   The Real Natives of the Land! 16:52  |  Mark 20/08/07
  23.   "Mark" or Ahmed, good try but fooling nobody 17:03  |  Margie in Tel Aviv 20/08/07
  24.   REST ASSURED, THE EU WILL BUCKLE IN NO TIME. 17:04  |  CHAMBERLAIN 20/08/07
  25.   #3 17:08  |  Reuven 20/08/07
  26.   "MARK"??Israelis would run away because of a power outage? 17:09  |  PETERSM 20/08/07
  27.   #4 Mark 17:18  |  Amiruddin 20/08/07
  28.   Hey `Mark` here`s some real history for you. No need to invent 17:25  |  Margie in Tel Aviv 20/08/07
  29.   Hamas must provide... 17:28  |  Sulieman D 20/08/07
  30.   #8, Mark 17:32  |  Avi 20/08/07
  31.   EU policy 17:33  |  Jack 20/08/07
  32.   7, 8. you guys are waco. hamas can tax but eu is not obligated to 17:37  |  ralph 20/08/07
  33.   Murray.. 17:47  |  Willy 20/08/07
  34.   Political strangeling 17:53  |  Otto Rand 20/08/07
  35.   Mark 17:54  |  JonathanInTelAviv 20/08/07
  36.   Hamas needs electricity 17:59  |  Harry 20/08/07
  37.   To Mark #11 18:09  |  Peter 20/08/07
  38.   # 3 Bill Foonman, I remember a post...... 18:25  |  Lynn 20/08/07
  39.   # 1 Margie, those hypocrites...... 18:35  |  Lynn 20/08/07
  40.   The sad thing is that Hamas could have avoided all of these 18:44  |  Rut Bat-Horin 20/08/07
  41.   ralph 23 19:06  |  waco guy 7 20/08/07
  42.   hamas stealing fuel from power station thats why short then wants 19:42  |  ralph 20/08/07
  43.   #20 because they are lieing and the eu are fools 19:58  |  ralph 20/08/07
  44.   #^ 6 Cynical - What`s the difference? 20:27  |  17 20/08/07
  45.   Terrorist activities will be cheaper 20:40  |  KUTW 20/08/07
  46.   A sad state of affairs 20:49  |  Observer 20/08/07
  47.   DISAPPOINTING 21:20  |  indrajaya 20/08/07
  48.   Lynn #39 22:03  |  Guido 20/08/07
  49.   Murray of Montreal # 21 Standing Up 22:03  |  Jeff Northridge 20/08/07
  50.   Look at the bright side 22:14  |  Ian Robertson 20/08/07
  51.   Surely Whether to Tax Or Not Is An Internal Matter! 22:31  |  Brad 20/08/07
  52.   How about they PAY for Fuel? 22:45  |  Efox 20/08/07
  53.   Hamas trying to put tax on free gifts of importance for all gazan 23:05  |  Johnny 20/08/07
  54.   cynical # 6 sounds like you need to talk to your hero`s,hamas 23:09  |  terrornator 20/08/07
  55.   Egypt to Supply Electricity to Hamas Controlled Gaza 23:10  |  Lavy 20/08/07
  56.   To #47 23:16  |  EYESWIDEOPEN 20/08/07
  57.   What else is new?? 23:58  |  Larry 20/08/07
  58.   indrajaya 00:27  |  Brad 21/08/07
  59.   ELECTRICITY FOR WHAT? SO THEY CAN SEE WHERE TO GUIDE MISSLES? 00:27  |  THE PALESTINIAN MYTH 21/08/07
  60.   AMAZING!!!! 00:43  |  Cipora Julianna Kohn 21/08/07
  61.   Either rise against Hamas, 01:02  |  Jeff Treesh 21/08/07
  62.   Hey Cynical 01:27  |  Brad 21/08/07
  63.   EU: Fuel aid for Gaza hinges on Hamas vow not to tax electricity 01:47  |  Martin List,M.D. 21/08/07
  64.   The EU spokeswoman said they will look into the allegations by 01:49  |  lakshmi 21/08/07
  65.   34Otto Rand,you talk blithely of putsch,perhaps you are not aware 01:57  |  lakshmi 21/08/07
  66.   EU has conditions - Israel should have some also 02:49  |  * BEN JABO 21/08/07
  67.   Hamas will win. the PA stooges will fall 04:53  |  Timber! 21/08/07
  68.   lakshimi who are you calling garbage? Arabs not on your side? 06:31  |  PETER SM 21/08/07
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