Energy Ministry advances plan to cut household gas costs

Israel’s Energy and Infrastructure Ministry is advancing a plan to increase competition in the residential gas market and lower the cost for consumers by removing bureaucratic barriers and increasing transparency to expose large price gaps between suppliers.

The goal is to enable consumers to easily compare prices of suppliers of residential gas used for cooking and heating, strengthen consumer bargaining power, and reduce household costs, the Energy Ministry says.

The Energy Ministry found that the gap between the average bimonthly bill in the 12 largest cities exceeds 100 percent, with the highest average bill amounting to NIS 130 ($43.56) and the lowest around NIS 63 ($21).

As part of the regulatory steps advanced by the ministry, logistical barriers will be removed to make switching between suppliers easier and faster; a monthly index will be published to expose price gaps between companies from the cheapest to the most expensive ones across 12 major cities; and a public awareness campaign will be launched.

In addition, consumers will be able to use a residential gas price comparison calculator between cities and gas companies, available on the Energy Ministry’s website. Furthermore, the selection of a gas supplier for new residential buildings will be made subject to a competitive tender process among at least six suppliers. The Energy Ministry expects to advance the passage of the regulatory steps of the plan in the coming three months.