Electricity in Israel: Complete Guide for New Residents

Everything you need to know about setting up electricity service, rates, billing, and the Israeli electricity system

Overview of Israel’s Electricity System

Israel’s electricity system is dominated by the Israel Electric Corporation (IEC), known in Hebrew as Hevrat HaHashmal (חברת החשמל לישראל). The IEC is the largest supplier of electrical power in Israel and the Palestinian territories, owned approximately 99.85% by the State of Israel.

Key Facts About Israel’s Electricity System

• Grid Network: Israel is currently an electricity island; its grid network is not connected to neighboring countries, requiring complete self-sufficiency
• Capacity: Overall installed capacity totaled 21.5 GW in 2021, with IEC accounting for 61% of production
• Market Reform: Since June 2018, Israel has been implementing a comprehensive 8-year structural reform to increase competition
• Growing Demand: Electricity demand has grown by an average of 3% annually between 2010-2020

Setting Up Electricity Service

When Moving to a New Apartment

When moving into a new apartment, it is advisable to switch the electric bill to your name, even if you are renting. This will avoid confusion when the time comes to pay the bill.

Important: You certainly don’t want to be responsible for a previous tenant’s outstanding electricity bill or be forced to take on any of their utility debts.

Required Information

When setting up service, you’ll need:

• Current meter reading from the apartment
• Your personal details (name, Teudat Zehut number, phone number)
• Rental or purchase agreement
• Previous bill for contract number reference

How to Transfer the Bill to Your Name

There are several methods to transfer the electricity bill:

1. Online Registration

You can process the change online via the Israel Electric Company website at: חברת החשמל לישראל - עמוד הבית

There are two forms available:

• Change name of existing client: לטופס בקשה להחלפת שם לקוח בנכס
• Register new client for new dwelling: לטופס בקשה לרישום לקוח בנכס חדש

Download and complete the appropriate form and fax it to 1-800-200-103, or scan and email the document.

2. Phone Registration

You can transfer directly by calling 103. Enter your:

• Contract Number (on the top left corner of the electricity bill)
• Current meter reading
• Personal details: name, Teudat Zehut number, and phone number

3. Professional Services

Some companies like MaZeKal offer services to register electric, water, gas and Arnona bills in your name when you move in, and transfer them back when you move out.

Transfer Fee

There is a one-time fee for transferring the bill, which will be added to your first bill.

Billing and Payment

Billing Frequency

The electric bill will be sent to you every two months. The Israel Electric Corporation caters to approximately 3 million customers, most of whom settle their electricity bills every two months. Alternatively, you have the option to switch to a monthly billing cycle.

Bill Components

Your monthly bill will include:

• Fixed monthly payment: Basic service charge
• Kilowatt-hour rate: Based on your actual usage
• VAT: Currently 17%

Reading Types

Bills can be based on:

• Actual meter reading (regila - רגילה)
• Estimated reading (ha’aracha - הערכה) based on average consumption

If your bill is based on an estimate, you can provide an actual meter reading by calling 103 to request a revised invoice.

Current Electricity Rates (2024)

• Residential rate: Approximately ₪0.643 per kWh (about $0.183 USD)
• Business rate: ₪0.390 per kWh (about $0.111 USD)
• Updated rate: As of February 1, 2024, the current cost of electricity is approximately 62 agorot per kWh including VAT

Payment Methods

Bills can be paid through various methods:

• Online: Through IEC website (Hebrew only for services)
• Bank branches: Cash, check, or credit card
• Post offices: Some accept only Israeli credit cards
• Direct debit: Automatic bank transfers
• Phone payment: Calling customer service
• Money changers: Some offer bill payment services for a nominal fee

Electricity Tariff Options

Flat Rate vs. Variable Rate

There are two types of electricity tariffs available:

1. Flat Rate (Most Common)

• Same rate charged 24 hours a day
• Simpler billing structure
• No special meter required
• Most homes currently use this system

2. Variable Rate (Time-of-Use)

• Different rates based on time of day and season
• Potential savings of around 25% for disciplined users
• Requires installation of a special meter
• You pay for meter costs, installation, and potential disconnection fees

Variable Rate Structure

The variable rate includes:

Daily Rates:

• Peak rates: Highest cost during high-demand periods
• Regular rates: Standard pricing during normal hours
• Low rates: Cheapest during off-peak hours (e.g., 9 PM at night)

Seasonal Variations:

• Summer rates (highest)
• Winter rates
• Spring and autumn rates

Special Periods:

• Weekday rates
• Friday and holiday eve rates
• Shabbat and Jewish holiday rates (Friday evening to Saturday evening)

Switching Rate Plans

To change your rate plan, call 103 and speak with a customer service representative to verify and modify your current rate structure.

No Special Discounts for Olim

Important Note: Unlike Arnona (municipal tax), there are no special electricity discounts available for new immigrants (olim). All residents pay the same rates regardless of immigration status.

However, general discounts may be available for:

• Low-income households
• Disabled individuals
• Senior citizens
• Other qualifying circumstances

Check with IEC directly for eligibility requirements for these general discount programs.

The Electricity Market Reform

New Competition Options

Since 2018, Israel has been implementing electricity market reform allowing consumers to choose alternative electricity suppliers, similar to choosing internet or phone providers.

Benefits of Reform:

• Alternative suppliers offer 5% to 15% discounts compared to IEC rates
• Increased market competition
• Lower electricity costs for consumers
• No infrastructure changes (IEC still maintains the physical grid)

Availability: As of July 2024, even households without smart meters can switch energy providers.

How to Switch Providers

The technical switch is “on paper” only - the infrastructure remains the same, with IEC continuing to supply electricity through their grid. You simply change your billing provider to access potentially lower rates.

Energy Efficiency and Cost Savings

Energy-Efficient Appliances

The Israeli government requires all new electrical appliances sold to display energy efficiency ratings:

• Green “A” rating: Most energy-efficient
• Red “G” rating: Least energy-efficient

Choose “A” rated appliances for significant long-term electricity savings.

Money-Saving Tips

1. Unplug unused appliances: Many devices use standby power when plugged in but turned off, accounting for up to 10% of electricity bills
2. Clean air conditioner filters: Clean filters use less electricity to cool rooms
3. Use solar water heating (Dud Shemesh): Take advantage of Israel’s abundant sunshine for water heating
4. Consider variable rates: If you can shift usage to off-peak hours, variable rates may save 25% on bills
5. Monitor consumption: Record meter readings when moving in to ensure accurate billing

Solar Water Heating (Dud Shemesh)

What is Dud Shemesh?

A Dud Shemesh (דוד שמש – solar heated water tank) is commonly used for heating water and is located on your roof. During winter, you may need to turn on the electric “boiler” 30-60 minutes before showering to ensure hot water.

Benefits

• Utilizes Israel’s abundant solar energy
• Significantly reduces electricity consumption for water heating
• Standard in most Israeli apartments
• Environmentally friendly option

Customer Service and Support

Contact Information

• Customer Service Phone: 103
• Fax: 1-800-200-103
• Website: www.iec.co.il (Hebrew for services, English for corporate information only)

Language Considerations

• All digital services are exclusively available through the Hebrew website
• Customer service is primarily in Hebrew
• Live chat is available but only in Hebrew
• English-speaking residents may need assistance or translation services

Meter Location

The electricity meter is usually found outside the apartment door in the hallway or utility area. When moving in, ask the landlord or previous tenant to show you the exact location of all meters (electricity, water, and gas) and record the current readings.

Technical Infrastructure

Grid Reliability

Israel maintains a robust electricity grid with:

• High reliability standards
• Modern infrastructure investments
• Smart grid development as part of the ongoing reform
• Emergency backup capabilities

Future Development

Israel’s electricity system is evolving with:

• Renewable Energy Goals: 40% renewables by 2030
• Coal Phase-out: Elimination of coal power by 2025
• Natural Gas Expansion: 70% natural gas usage target
• Electric Vehicle Infrastructure: Preparation for EV adoption
• Smart Grid Technology: Modern distribution systems

Environmental Initiatives

National Energy Goals

• 2030 Target: 70% natural gas, 30% renewables
• Coal Elimination: Shutting down all coal plants by 2025
• Transportation: Gradual transition to electric cars and natural gas trucks
• Import Ban: Gasoline car imports banned starting 2030

Current Energy Mix (2022)

• Natural Gas: 72% of power generation
• Coal: 21.8% (down from 61% in 2012)
• Renewables: 10.1%
• Other sources: Remainder

Troubleshooting Common Issues

Estimated Bills

If you receive an estimated bill, call 103 to provide an actual meter reading for a corrected bill.

High Bills

Check for:

• Appliances left on standby
• Inefficient air conditioning filters
• Old, energy-inefficient appliances
• Incorrect meter readings

Service Interruptions

Contact 103 immediately to report power outages or electrical problems.

Bill Transfer Problems

Ensure you have:

• Correct contract number from previous bill
• Accurate meter reading
• Valid identification
• Proper rental or ownership documentation

Summary

Electricity in Israel is provided primarily through the state-owned Israel Electric Corporation, with new competitive options emerging through market reform. While there are no special discounts for new immigrants, the system offers reliable service with various tariff options to suit different usage patterns.

Key Points for New Residents:

• Transfer the bill to your name immediately when moving in
• Choose between flat rate (simple) or variable rate (potential savings)
• No olim discounts available, unlike other utilities
• Bills come every two months unless you request monthly billing
• Consider energy-efficient appliances and usage patterns for savings
• Take advantage of solar water heating (Dud Shemesh)
• Explore new competitive electricity suppliers for potential discounts

The ongoing electricity market reform provides opportunities for cost savings through alternative suppliers, making it worthwhile to research options beyond the traditional IEC service once you’re established in your new home.