Nearly Half a Million Israeli Consumers Switch to Private Electricity Suppliers

Nearly 500,000 electricity consumers in Israel have switched from the state-owned Electric Company to private suppliers, according to data released by the Electricity Authority. Of these, approximately 450,000 are households. The pace of this transition is accelerating, with over 20,000 consumers changing suppliers in August alone, marking the highest monthly figure for 2026. This shift is a result of a reform that opened the domestic electricity supply market to competition in July 2024. In June 2025, only about 272,000 meters were connected to private suppliers, indicating a near doubling of private customer numbers in just over a year.

Private suppliers are offering discounts ranging from 5% to 21% compared to the Electric Company's basic tariff, with the best deals often tied to specific consumption times and requiring smart meters. Importantly, the electricity grid infrastructure and maintenance remain the responsibility of the Electric Company, regardless of the supplier chosen by the consumer.

The city of Modi'in Illit has seen the highest adoption rate, with about 33% of its consumers switching. Among cities with over 200,000 residents, Bnei Brak and Petah Tikva lead with approximately 21% each. In the 100,000 to 200,000 population bracket, Modi'in Maccabim-Reut has a 28% switch rate, while Herzliya and Beit Shemesh are around 21%.

The reform allows consumers to choose their billing company without altering their physical electricity connection. The Electricity Authority anticipates continued growth, projecting that approximately 595,000 household consumers will be connected to private suppliers by the end of 2026.