THE national electric company has cut back its already limited electricity shipments to the Gaza Strip, a step that will worsen the power crunch in the Hamas-controlled territory.

The company confirmed the Israeli government instructed it to reduce supply to Gaza at the request of the government of Palestinian President Mahmoud Abbas in the West Bank.

Abbas recently told Israel he would cut payments for Gaza’s electricity.

Hamas seized Gaza from Abbas’s forces a decade ago, and the internationally recognised Palestinian leader is trying to step up pressure on the militant group to cede power.

With its small power plant not working and Israel providing a fraction of its needs, the four hours’ electricity a day on which Gaza’s two million people have been scraping by is about to be cut.

Mohammed Thabet, of the Gaza electricity distribution company, said the enclave's roughly two million residents could expect to receive even less power.

“There is nothing we can do,” he said.

Thabet said Gaza was receiving 112 megawatts of power a day, down from the previous level of 120 megawatts. Gaza needs about 400 megawatts to meet its daily needs.

Despite three wars over the past decade with Hamas, Israel has continued to provide limited power to Gaza, paid for by the Palestinians, to prevent a humanitarian crisis on its doorstep and out of concern that more instability could lead to renewed fighting.

Last week, Hamas warned of renewed violence against Israel if power is cut.

Israel has described Gaza’s power crisis as an internal Palestinian issue, saying it is merely a supplier.

The electric company confirmed it had begun to reduce supplies yesterday and said shipments would be scaled back gradually, “so that the electricity supply will match the financial commitment”.

“The internal deliveries of electricity to consumers inside the Gaza Strip is not the responsibility of the electric company and is done by internal Palestinian authorities in the Gaza Strip,” it said.

Israel accuses Hamas of diverting Gaza’s limited electricity for military use and worsening the hardship on its people.

Israel and Egypt have maintained a blockade on Gaza since the Hamas takeover in June 2007, restricting the movement of people and goods in and out of the territory.

Israel says the restrictions are needed to prevent Hamas from smuggling weapons.

Mr Abbas has grown increasingly frustrated with repeated failures in reconciliation talks with Hamas and the group’s refusal to cede control of Gaza.

In recent months, he has stepped up financial pressure on Hamas.

In April, he reinstated taxes on fuel bound for Gaza’s only power plant, making Hamas unable to afford it.

As a result, the small station has stopped working. Gaza now receives its only electricity from Israel, and a small quantity from Egypt.