Ultra-Orthodox Cities Lead Israel's Electricity Market Competition

Ultra-Orthodox cities are at the forefront of Israelis switching from the state-owned Israel Electric Corporation (IEC) to private electricity suppliers. Modi'in Illit recorded the highest switching rate in Israel, with approximately 33% of households moving to private providers. Bnei Brak leads among cities with over 200,000 residents, and Beit Shemesh ranks third in the large city category. These figures are based on data from the IEC and the Noga electricity system company, as reported by ynet.

Since the market opened to competition in July 2024, around 450,000 households have switched to private suppliers. August alone saw a record of over 20,000 consumers changing providers. In Modi'in Illit, 4,194 out of 12,614 electricity meters, about 33%, have switched. Bnei Brak has seen 11,261 out of 53,976 meters switch, representing 20.9%, the highest rate among metropolitan cities with over 200,000 residents. For comparison, Tel Aviv has the highest number of switched meters at 31,680, but this is only 11.8% of its total meters. Beit Shemesh has 8,288 switched meters out of approximately 40,230, a rate of about 20.5%, placing it third among cities with 100,000 to 200,000 residents.

Private electricity suppliers offer discounts ranging from 5% to 21%, depending on the plan and electricity consumption hours. Higher discounts are typically available for consumers with smart meters, which track usage by hour. Major private companies active in the market include Cellcom, Partner, Bezeq, Super-Power, Amisragas, and Pazgas. The physical electricity infrastructure remains the responsibility of the IEC, while private companies handle billing and offer discounts.

Despite the growing number of switches, most Israeli households still receive their bills from the IEC. Many have analog meters, preventing them from accessing plans with significant off-peak hour discounts. Energy and Infrastructure Minister Eli Cohen hailed the reform as the most significant since the cellular market liberalization, potentially saving families hundreds to thousands of shekels annually. He noted that households in ultra-Orthodox cities, often facing higher expenses and significant family electricity consumption, are quickly adopting these savings opportunities. The actual savings vary based on the company, plan, consumption patterns, and meter type.