By Ori Lewis
It is the latest in a series of Israeli steps to increase pressure on Gaza, ruled by the Hamas Islamists since June and the source of repeated rocket attacks into the Jewish state.
The reduction will, at this point, translate to less than 1 percent of the 124 megawatts Israel supplies for the entire coastal territory, he said.
Critics accuse Israel of imposing a blockade that amounts to "collective punishment" of the population after it cut fuel to Gaza's main power plant last month, leading to blackouts.
Israel, which occupied the Gaza Strip in 1967, pulled troops and settlers out in 2005 but still controls its northern and eastern borders, airspace and coastal waters.
Asked to comment, U.S. State Dept spokesman Tom Casey said he was not familiar with the Israeli decision.
Israel has stepped up military action against Hamas since it claimed responsibility for a Palestinian suicide bombing on Monday, the first such attack by the Islamist faction inside the Jewish state since 2004.
Palestinian militants blasted open the territory's border with Egypt last month in defiance of an Israeli blockade. Egypt re-sealed the border on Sunday.
Israel declared Gaza an "enemy entity" in September. The "enemy" designation was a green light for sanctions although Israel said it would not inflict a humanitarian crisis on Gaza's 1.5 million people.
On Thursday the Israeli army said troops had uncovered underground rocket silos in the northern Gaza Strip. Israel has threatened a major ground offensive into Gaza to try to end the rocket salvoes.
