Still far from a cellphone revolution: Why is the private electricity reform stalling?

The private electricity reform championed by Eli Cohen is far from replicating the cellphone revolution: 450,000 households have switched, but average savings are only 5%-7%. Providers like Supergas Power and Cellcom Energy have shifted to low profitability, arguing that the Israel Electric Corporation's tariffs prevent competition. The Energy Ministry calls the reform a huge success.

The private electricity reform, presented as a major achievement of outgoing Energy Minister Eli Cohen, is far from replicating the success of Moshe Kahlon's cellphone reform. While 450,000 households have switched to private electricity providers in the past two years, the average savings stand at only 5%-7% of the electricity bill, compared to about two-thirds of cellphone prices in that reform. The article examines the market structure: providers such as Supergas Power, Cellcom Energy, Bezeq, Partner, HOT, and Amisragaz operate as virtual operators purchasing electricity from private producers but do not build independent infrastructure. Their profitability is low – Supergas Power recorded a net profit of 13 million shekels on revenues of 493 million shekels in the first half of 2026. The Forum of Private Electricity Providers claims that the transmission and distribution tariffs of the Israel Electric Corporation are too high and prevent real competition. Economist Chen Herzog from BDO notes that efficient private producers cannot sell directly to providers. In contrast, the Energy Ministry calls the reform a 'huge success' and claims that over 2 million citizens have switched to competing providers. The article concludes that the discounts are similar across companies, and the annual savings for an average family amount to only about 300 shekels.