Tens of Thousands Switch to Private Electricity Suppliers in Israel

Since the opening of Israel's electricity market to competition in July 2024, approximately 450,000 households have switched from the state-owned Israel Electric Corporation (IEC) to private suppliers. The pace of this transition has accelerated, with over 20,000 consumers joining private plans in August alone, marking the highest monthly figure this year.

Significant regional disparities exist in adoption rates. Modi'in Illit leads with 33% of households switching. Other Haredi cities also show high engagement: Beitar Illit at 21%, Elad at 20%, and Bnei Brak with 21% (11,200 out of 54,000 households). Following Modi'in Illit, other cities with high switching rates include Be'er Yaakov (29%), Modi'in Maccabim Re'ut (28%), Shoham (27%), Zichron Yaakov and Ness Ziona (26%), Rosh Ha'ayin (26%), Givat Shmuel (25%), and Kiryat Ono and Gan Yavne (24%).

Major cities also show substantial adoption. Petah Tikva has seen 21% of households switch, Rishon LeZion 20%, and Ashdod 18%. Jerusalem's rate is 13%, Tel Aviv-Yafo's is 12%, Be'er Sheva's is 11%, and Haifa's is 10%.

Consumers can potentially reduce their electricity bills by 5% to 21% by switching to private suppliers, depending on their chosen plan. Importantly, the switch only affects the electricity provider, not the infrastructure. The IEC remains responsible for maintaining the electricity grid and addressing any faults.

In just over two years since the market opened, hundreds of thousands of households have opted for private electricity providers, with August's figures indicating a continued strengthening of this trend.