The electricity market will be opened to competition and consumers will save at least NIS 2 billion

The electricity reform is underway!

After months of preparations, Minister Eli Cohen announced that in exactly one week, on 25/7/24, the electricity reform will be launched, the biggest reform in the Israeli economy since the cellular reform.

Chairman of the Electricity Authority, Amir Shavit:

The Electricity Authority works continuously to improve and increase competition in the electricity segment for the benefit of consumers. As part of the reform to integrate basic meters into the competition, the authority decided that starting in January 2025, the transition time to a new provider will be shortened so that transitions between providers will be made twice a month instead of once.

According to the reform, every consumer in Israel will be able to choose which supplier they purchase electricity from and enjoy a 5-20% discount on the electricity tariff. The move is expected to save each household hundreds and even thousands of shekels per year depending on the offers of the suppliers, the nature of use and the hours of electricity consumption.

Minister of Energy and Infrastructure, Eli Cohen: 

Electricity is a basic consumer product in every home and business in Israel. This revolution is historic and it is the biggest reform in the Israeli economy since the cellular reform. We are breaking the monopoly of the electricity company, opening the electricity sector to competition and returning at least NIS 2 billion to the citizens. Starting exactly one week from now, everyone will be able to choose their electricity supplier, receive a discount of 5% to 20% on the electricity bill, and save hundreds and thousands of shekels a year. I call on the citizens of Israel: check, compare, and save.

As a reminder, until today, only consumers with a smart meter could switch to a private electricity supplier. According to the reform that will begin next week, as of 25/7/2024 it will be possible to associate consumers with suppliers even without a smart meter, and thus every household will be able to contract with one of the eight companies that supply electricity privately, even before installing a smart meter in their home.

CEO of Nega, Shaul Goldstein: 

The opening of the competition market in the supply of electricity to the home consumer, led by Minister Eli Cohen, is great news that can save all home consumers in Israel approximately 2 to 3 billion NIS per year, this is on the basic assumption that the consumers will receive even only a 5% discount from the current price. In fact, this is an annual saving of hundreds of shekels and more for every family in Israel immediately. In addition, indirect savings will be created for the economy by adjusting the consumption curve for the household to the production curve of renewable energies, which may lead to a further reduction in the domestic tariff. The Nega company is doing its utmost to meet the minister's goals for making the service accessible simply and efficiently.

As part of the hearing that was published to the public several months ago, the Electricity Authority and the "Nega" company regulate the way a consumer switches from the electricity company to a private supplier, detailing the way of accounting with the consumer based on a "consumer profile", while maintaining simplicity and the need to read only one verified meter.

CEO of the Electric Company, Meir Spiegler:

From the moment the possibility of opening the supply market to competition came up for traditional meter owners as well, the Electric Company supported it without reservation and cooperated fully in a proactive manner. This is a real competition that will bring down prices and we support it as part of a world view, with only the public interest in the State of Israel in mind.