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In a groundbreaking move, Minister of Energy and Infrastructure Eli Cohen has announced a transformative reform that will revolutionize Israel’s electricity sector. This historic initiative marks the first time since the State’s foundation that the electricity sector will open to full competition, enabling various companies to sell electricity to households across the country.
Minister Eli Cohen expressed his enthusiasm, stating, “The electricity revolution which we have launched by opening the electricity sector to competition is enormous news for all residents of Israel, and it will lead to savings of hundreds or even thousands of Shekels each year in electric bills. I believe electricity is a basic and critical consumer product in the life of every Israeli household.”
Key figures in the sector have welcomed the move, recognizing its potential to strengthen the economy and lower the cost of living. Chairman of the Electricity Authority, Mr. Amir Shavit, highlighted the authority’s commitment to promoting competition and removing obstacles, ensuring an efficient, reliable, and clean electricity sector.
Shaul Goldstein, CEO of Noga, emphasized the significant advancement in competition and efficiency resulting from the Minister’s decision. “This competition may lead to savings for consumers as well as a sector-wide improvement in efficiency. The State of Israel is at an economic crossroads, and such a move may contribute to strengthening the economy and lowering the cost of living.”
The widespread distribution of smart-meters forms the basis for this transformative reform. The Israel Power Corporation’s accelerated deployment of smart-meters, scheduled to be completed by 2028 instead of 2036, is pivotal in enabling consumers to choose their electricity providers based on competitive prices. The move is seen as a catalyst for improvements in service quality, including automatic malfunction detection without the need for consumer intervention.
Director General of the Ministry of Energy and Infrastructure, Yossi Dayan, highlighted the broader innovation process underway, aiming to promote meaningful reforms, encourage competition in all energy sectors, and enhance the efficiency and green aspects of the energy sector.
With the launch of the reform, the power supply segment will witness robust competition, allowing every Israeli citizen to choose from private electricity providers and tailor packages to their needs. Notably, the reform extends its benefits to households without smart-meters, as the Electricity Authority allows their inclusion in the competitive landscape.
This historic decision follows January’s authorization for private providers to directly purchase power from producers. As a result, power providers gain the ability to enhance the efficiency of their energy sources, fostering increased competition and a subsequent decline in consumer prices. The reform promises a future of economical, flexible, and smart power consumption for every Israeli family. |
