CAIRO: The EU has agreed to resume funding to Gaza's main power station on a provisional basis after receiving guarantees that Hamas would not apply taxes to the electricity bills. The funding resumed after EU officials met with Fatah-appointed Prime Minister Salam Fayyad. A statement was released Tuesday by the two parties announcing that audits would be carried out to guarantee that "fuel aid in Gaza remains properly managed. Egypt had earlier criticized the EU decision to suspend funding of the main electrical power plant in Gaza out of fear that they were inadvertently funding Hamas, and has pledged to continue supplying the strip with electricity. Foreign Ministry spokesman Hossam Zaki said in a statement that "playing with the essential services of the Palestinian people in the Gaza Strip shouldn t be allowed, whatever the pretext. "Agreements to supply electricity to Gaza s inhabitants should remain as they are, and no party, whoever they might be, should use basic utilities as political cards, he added. During the shut down, Egypt continued to supply Gaza with electricity, contributing a total of 5-10 percent of the area's needs or 17 megawatts out of the required 200 megawatts. "This is part of our commitment to provide all kinds of possible support to the Palestinians, Zaki said. The Gaza Generating Co. shut down three of its four generators on Friday, with the blackouts affecting many of Gaza's 1.5 million residents. The press reported that hospitals had heavily been on the receiving end of the power shortages and had to rely on generators. The EU stated it would cease funding unless it received guarantees that Hamas - a group which the EU considers to be a terrorist organization - was not profiting from the fuel payments. A spokeswoman for the European Commission said Monday, "We have been made to understand that Hamas plans to introduce taxes on electricity bills in the Gaza Strip and . this would not allow us to continue paying for fuel. "We are ready to resume paying for these fuel deliveries within hours once we have received assurances that these taxes will not be introduced, the spokeswoman added. The EU allocates 6.5 million euros annually to the Gaza power station, which supplies 25-30 percent of Gaza's electricity needs. Hamas, in control of Gaza since ousting Fatah two months ago, denied diversion of any funds from the electricity company and stated it would provide the necessary guarantees the EU requested. Additionally, Israel shut the main fuel crossing in Gaza, Nahal Oz, last week which directly caused the shut down of the generators. The Israeli Dor Alon fuel company said it will not resume providing fuel without guarantees of continued EU funding, the Financial Times reported.
