The Israeli Ministry of Energy and Infrastructure has announced a historic reform in the country's electricity sector, opening up the sector to competition for the first time since Israel was founded in 1948. The reform, which is expected to reduce the electricity bill for households by an estimated rate of 5% to 20%, will open the Israeli electricity market to private providers as of the summer 2024, after it had been controlled almost entirely by the state-owned Israel Electricity Corporation (IEC). Smart-meter rollout will be accelerated, with the aim to reach 100% of smart meters by 2028 instead of 2036; at the end of 2023, 750,000 smart meters had been deployed out of nearly 3.7 million.
The Israeli electricity system consists of four segments: electricity generation, transmission to substations, distribution, and supply. Electricity generation in Israel has been gradually transferred to private companies, but the other segments remained under IEC control until now. Starting in summer 2024, Israeli households will be able to choose one of the private suppliers, who will be allowed to purchase electricity from the generators.
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