Electricity Market Reform Slashes Bills, Challenges State Monopoly
Translated & summarized from Maariv by baba
Israel's electricity market reform is allowing consumers to save thousands of shekels annually by switching from the state-owned IEC to private suppliers. In September, over 23,000 households and businesses applied to switch, benefiting from discounts of up to 20%. Minister of Energy Eli Cohen hailed the reform as crucial for breaking the IEC's monopoly and urged citizens to participate. The reform includes adding new generation capacity and shortening switching times.
The story in 5 lines · by baba
- Over 23,000 Israeli households and businesses switched electricity providers in September, saving money.
- Consumers switching from the IEC can save up to 20% on their electricity bills.
- Energy Minister Eli Cohen called the reform the most important since cellular phones.
- The reform aims to break the monopoly of the state-owned Israel Electric Corporation.
- New generation capacity and faster switching times are enhancing market competition.
A significant reform in Israel's electricity market is enabling consumers to save hundreds, and potentially thousands, of shekels annually by switching from the state-owned Israel Electric Corporation (IEC) to private suppliers. In September alone, approximately 23,286 households and businesses submitted applications to switch providers, a process known as "niud" (mobility).
These consumers are benefiting from reduced electricity prices, with discounts ranging from 7% to as much as 20%, attributed to lower production costs in the private sector. The reform, spearheaded by the Energy Ministry in collaboration with the Electricity Authority and IEC, aims to break the IEC's monopoly.
Minister of Energy Eli Cohen described the reform as "the most important reform since cellular phones," emphasizing its impact on breaking the IEC's monopoly. He also announced his personal switch to a private supplier and urged all Israelis to compare offers and switch to save money.
To further boost competition and consumer savings, 1,000 megawatts of new generation capacity were added to the market at the beginning of the year. Additionally, the time required for switching providers has been reduced from 14 days to just seven.
Of the nearly 23,300 applications submitted in September, 7,666 were from basic residential meters, 14,083 from smart meters, and 1,537 from business meters. The market now includes numerous private electricity suppliers, many originating from the telecommunications sector, such as Cellcom, Bezeq, Partner, and HOT, alongside energy companies like Electra Power.
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