Israel’s Electricity Authority published for public comment on Thursday its findings on a long-running billing failure at Israel Electric Corporation that left about NIS 65 million uncollected from owners of solar rooftops over roughly five years. The missing charge is the “system tariff,” a fee imposed on solar-system owners for using the national electricity grid.
The authority said the tariff was set in 2018, but it was not fully collected for years because of a computer and operational failure at the company. Israel Electric Corporation identified the problem in 2023, but did not report it to the regulator in real time. In early 2026, the company tried to recover the debt retroactively for the previous two years, but the move was halted immediately by the Electricity Authority after the issue became public.
The company said it accepted responsibility and attributed the breakdown to extraordinary regulatory, operational and computing overload, worsened by the COVID-19 crisis and the Hamas war, “Swords of Iron.” The regulator now proposes splitting the damage between the company and the public. For 2020 to 2023, the company would be barred from collecting anything and would absorb the full loss. For 2023 through April 2025, Israel Electric Corporation would bear 60 percent of the cost, about NIS 22 million, while the remaining 40 percent, about NIS 14 million, would be recognized as part of system costs and passed on to all consumers.
The authority said the approach balances accountability with keeping the power system stable, so the public would cover only part of the harm. It also said future retroactive collection should be allowed only in limited cases, for up to six months, without interest or linkage, in up to six installments, and via a separate invoice sent within 90 days of the decision. The company was also instructed to improve internal controls, create dedicated oversight teams, and strengthen monitoring of regulatory implementation. The proposal is now in public hearing, with comments due by 16 July 2026, before a final vote by the Electricity Authority plenary.
