In a stunning show of progress, Israel's electricity market reform has seen over 100,000 households and businesses switch from the Israel Electric Corporation (IEC) to private suppliers—well ahead of schedule. Initially set as the ambitious target for the end of 2024, this milestone has already been surpassed, prompting the Ministry of Energy and Infrastructure to raise its goal to 200,000 customers.

This seismic shift in the energy market comes just over three months after the Ministry's electricity market reform took effect. The reform has sparked unprecedented enthusiasm among consumers eager to explore alternatives, and already, 42,000 additional households and businesses are in the process of making the switch. Add to this the 80,000 customers who have completely moved away from the state-owned IEC, and it’s clear that Israel’s energy landscape is undergoing a dramatic transformation.

The Game-Changing Smart Meter Revolution

One of the most groundbreaking changes of the reform has been the opportunity for customers with basic electricity meters—previously locked into IEC contracts—to switch providers. A total of 27,950 customers with these basic meters have already taken advantage of this new flexibility, marking a significant milestone. The introduction of smart meters, which are read remotely, is also proving to be a game-changer. Households and businesses with these advanced meters can enjoy far greater discounts than those with traditional meters, making the switch to a private supplier even more attractive.

The competition isn't just between IEC and the private sector anymore. In another sign of a maturing market, over 14,000 households and businesses are currently switching between private electricity suppliers, further intensifying competition and offering consumers more choice than ever before.

What’s Next: Target Raised to 200,000, New Marketing Blitz to Begin

With more than 3.1 million electricity customers in Israel, the 100,000 switchers are only the beginning. As a result of this unprecedented early success, the Ministry of Energy and Infrastructure, along with Noga Electricity Systems Management, has set its sights on a new target: 200,000 customers switched by the end of 2024. To ensure this ambitious goal is met, a nationwide marketing campaign is set to launch in November, encouraging even more households and businesses to explore the benefits of switching to a private electricity supplier.

Private Supplier Discounts—Massive Savings Await Consumers

For Israeli consumers, the financial perks of switching are substantial. Private suppliers are offering competitive discounts that are far more attractive than the standard IEC tariffs, especially for those with smart meters. Here’s a look at what some of the biggest players in Israel’s electricity market are offering:

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• Electra Power: Discounts of 5%-7% for basic meter customers, 8%-10% for smart meter customers, and a massive 20% discount for electricity used at night.
• Amisragas: A flat 7% discount for its gas customers and a 6.5% discount plus a free month of gas per year for others.
• Bezeq: A 7% discount for basic meter customers, and a generous 15%-20% for those with a smart meter.
• HOT: E-triple customers with a basic meter can save 10%, while those with a smart meter see savings up to 20%.
• Cellcom: Discounts range from 5%-7% for basic meters, and 15%-20% for smart meter users.
• Pazgas: Offers 7% for basic meter customers and an additional 10% discount when using their cashback app.
• Partner: Offers a 5%-7% discount for basic meter customers, with savings up to 20% for those with smart meters.

These deals make switching not just a choice, but a potential windfall for the typical Israeli household or business. As competition heats up, we can expect to see more enticing offers roll in, putting power directly in the hands of the consumer—both figuratively and literally.

2. Israel’s Electric Vehicle Push

Israel is quickly adopting electric vehicles (EVs), with Tesla entering the market in 2021 and gaining popularity. Lesser-known brands like GAC (a Chinese automaker) are also growing in popularity. Israel has been ramping up its EV…

— The Omniscient (@_TheOmniscient_) October 6, 2024

A Historic Moment for Israel’s Energy Market

This surge of activity in Israel’s electricity sector marks a historic shift away from a decades-long monopoly toward a competitive and consumer-friendly market. With more customers expected to make the switch in the coming months, and with new incentives and discounts on the horizon, Israel is positioning itself as a leader in energy market liberalization in the region.

Consumers are no longer bound to the whims of a single provider and can instead make choices based on their needs, preferences, and budgets. With the momentum growing, the country’s electricity revolution is well underway, and the landscape will never be the same.