Electricity reform allowing all consumers to choose providers enters into effect

A major electricity industry reform comes into force, allowing all consumers, including those without smart meters, to choose between different providers.

Energy Minister Eli Cohen claimed the competition will see household energy bills dropping by 5-20%, with electricity costs as a whole going down by NIS 2 billion to NIS 3 billion ($550 to 820 million) yearly.

A smart meter records electricity use constantly, allowing a reading and remote transmission of consumption data at least every quarter of an hour.

The Electricity Authority is aiming to have smart meters installed everywhere by 2028.

As of now, any owner or renter of a residential property with an electricity meter can choose to leave the Israel Electric Corporation for any of seven private suppliers.

These consist of three companies already involved in energy (Pazgas, Amisragas, and Electra) and four in the telecommunications sector — Bezeq, HOT, Cellcom, and Partner.

Two additional private companies have been established for the business sector.

The measures, described by Cohen as “historic,” form part of a wider structural reform of the electricity industry introduced starting 2018.