Residents of the Gaza Strip were experiencing extreme power outages Sunday, as the European Union cut funding which paid for the fuel supply to the main power plant in the enclave, DPA reported. The fuel for the Gaza Generating Company is supplied by an Israeli company, Dor Alon Energy, and is funded by the EU. The plant supplies power for about a quarter of Gaza's 1.5 million residents. On Sunday, after cutting back the previous two days, the Gazan company stopped producing electricity. "Because of the overall security situation, we have decided to take stock of all our mechanisms and systems. Pending the result of this assessment we hope to resume payments within the next 24, maximum 48 hours," said Alix De Mauny, a European Commission spokeswoman in Al-Quds. Electricity supplies were in eight-hour intervals for many Palestinians in Gaza. Israel and Egypt were however supplying power to certain sections of the strip. On Sunday, the Dor Alon company said in a statement that it was informed by the EU that it would no longer fund the fuel. As such, the company said it would not resume supply to Gaza even though the crossing was open. "If and when the European Union or another responsible body informs us that it will commit to pay for the fuels to the power station, the fuel supply will be renewed," the statement said.