More than two million citizens, representing more than 500,244 private and business customers, have switched from the Israel Electric Corporation to the private market since the electricity market reform began at the start of 2025, according to data published recently by the Energy Ministry.
The energy sector is one of the few areas where the government has genuinely fought the cost of living, and this is also evident in the domestic gas market. Regardless of the reform, electricity prices in Israel are considered among the lowest in the world, primarily due to discounted natural gas.
Customers who switched from the Israel Electric Corporation to private suppliers enjoy discounted electricity rates, ranging from 7% to 20%, thanks to the lower generation costs in the private market. The joining trend continued this past September, when 23,286 households and businesses submitted requests to switch suppliers.
Growing competition in the energy market
At the beginning of the year, 1,000 megawatts were added to competition in the electricity market, which will increase competition and discounts. In addition, the switching time was shortened from 14 days to just seven. The reform saves each household hundreds and even thousands of shekels a year, depending on the suppliers' offers, the nature of use, and the hours of electricity consumption.
Noga, the company that manages the energy sector and led the reform in cooperation with the Energy Ministry and the Israel Electric Corporation, revealed that out of the switching requests from 23,286 households and businesses submitted in September, 7,666 hold a basic home meter, 14,083 hold a smart home meter, and 1,537 hold a business meter.
Several companies operating in the Israeli market supply private electricity, most of them from the energy sector and a significant portion from the telecommunications sector. These include Cellcom, Bezeq, Partner, HOT, Electra Power, Pazgas, and Amisragas. These companies purchase electricity from private generators and supply it to consumers at discounted prices.
Breaking the monopoly of Israel Electric Corporation
According to Energy and Infrastructure Minister Eli Cohen, "The numbers speak for themselves. The data proves that this is the largest reform in the economy since the cellular reform, saving hundreds and thousands of shekels a month for every family. We are breaking the monopoly of the Israel Electric Corporation and opening the electricity market to competition."
He added: "The more than two million customers who took the right step and joined the electricity reform are not wrong. They decided to save hundreds and thousands of shekels a year. I also switched to a private supplier, and I call on all citizens of Israel: Compare, switch, and save."