Electricity Authority Cuts Retroactive Bill for Solar Rooftop Owners

After Globes revealed that Israel Electric Corporation planned to collect thousands of shekels retroactively from rooftop solar owners for system-management costs it had not charged for five years, the Electricity Authority intervened and ordered an investigation. The authority has now decided the utility may bill only six months back instead of the two years it had originally intended, meaning rooftop owners will still owe up to several hundred shekels.

The remaining cost will be split among the company, which will absorb 22 million shekels, and the broader electricity-consuming public, which will cover another 14 million shekels. The retroactive collection had been estimated at about 65 million shekels, and the authority said the public’s partial contribution is “a necessary step in risk management” for a vital service provider.

According to the investigation submitted by Israel Electric Corporation, the billing failure stemmed from “human error” tied to regulatory, operational and IT overload. The authority said the company had known about the collection failure as early as January 2023 but did not report it until the matter was exposed in the media, a failure it views “very seriously.” For the 2020 to 2023 period, the company will absorb the full cost.

The authority also said any approved retroactive charge must be collected without interest or indexation, may be spread over up to six payments, and must be issued in a separate bill within 90 days of the decision. The final ruling is still subject to public hearing. Israel Electric Corporation said it is reviewing all relevant aspects before deciding, while both sides pledged new internal procedures, technical support and monitoring to prevent similar regulatory failures.