Hamas accused the Abbas government of irresponsible behaviour and warned that the announced cuts would be disastrous for Gaza's 2 million residents.
Abbas and Hamas have led rival governments since the Islamic militant group seized Gaza in 2007, driving out forces loyal to the Western-backed Palestinian president.
After several failed reconciliation attempts, Abbas recently said he would pressure Hamas financially to force it to cede ground. The Palestinian leader was to meet today at the White House with President Donald Trump to discuss ways of restarting long-stalled Israeli-Palestinian peace talks. Steps against Hamas could bolster Abbas' claims that he speaks for all Palestinians.
Hussein al-Sheikh, head of the Civil Affairs Department, said Hamas profits because it collects electricity payments from Gaza residents. "We are not going to continue financing the Hamas coup in Gaza," he told the Voice of Palestine radio station.
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Al-Sheikh said the aim was to "dry up Hamas' financial resources." He said efforts would be made not to harm services to Gaza residents, but did not explain how that would be possible.
"Today, Abbas put himself in a confrontation with the Palestinian people," Barhoum said. "Its consequences will be catastrophic and disastrous, not only for Hamas, as they think, but for all Gazans."
Gaza residents have been enduring worsening power cuts - a result of border blockades by Israel and Egypt that were triggered by the Hamas takeover. Residents currently live with rolling blackouts - six hours on, 12 hours off - that have further crippled an economy devastated by conflict.
Israel supplies electricity from 10 power lines that cover about 30 per cent of Gaza's needs. Israel deducts the money from the taxes and customs it collects on behalf of the Abbas government. Egypt provides some electricity, but supplies are less reliable.
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