Private suppliers brought competition to the electricity market

A feature report on the opening of Israel's electricity market to competition since July 2024. The story of Tuvia and Ilana from Gan Yavne, who switched to a private supplier and save 20% on consumption during off-peak hours, alongside Asi Nahir from Hod Hasharon who saves about 30 NIS on average. About 450,000 households have switched to private suppliers, with a monthly record of 20,000 joiners in August. Dr. Amit Mor explains the tariff mechanism and the economic interest in shifting consumption hours.

A feature report on the impact of competition in Israel's electricity market, which opened to all households in July 2024. The report focuses on the story of Tuvia and Ilana from Gan Yavne, who switched to a private electricity supplier and make a point of operating high-consumption appliances (washing machine, oven, sewing machine) between seven in the morning and five in the afternoon, hours when electricity is 20% cheaper. In contrast, Asi Nahir from Hod Hasharon also switched to a private supplier on a time-of-use tariff, but says the savings amount to about 30 shekels per month on average. Dr. Amit Mor, CEO of Ecoenergy and a lecturer at Reichman University, explains that supply companies purchase electricity from the grid and sell it to consumers, and that aligning tariffs with consumption hours is a significant economic interest — reducing peak-hour load will prevent the operation of expensive power plants. As of the report, about 450,000 households have switched to private suppliers, with a monthly record of 20,000 joiners last August. 70% of households have not yet switched, and Dr. Mor estimates that when 40% of consumers switch, the Israel Electric Corporation will also be able to enter the competition. The report presents a positive picture of competition, while almost completely omitting critical voices or consumer warnings.