How to Save on Electricity Bills: Choosing Between IEC and Private Suppliers
In Israel, the cost of electricity is constantly rising, and every month millions of families anxiously open their bills from IEC (Israel Electric Corporation). However, few know that since 2018, a reform in the electricity market has been in effect, allowing consumers to choose their supplier. Savings can reach 15-20% of the bill amount, which for an average family amounts to hundreds of shekels a year. Yet, confusion between the state company and private suppliers scares many away. In this article, we will break down the difference, how to switch to a more favorable tariff, and how not to lose service quality. And if you need the services of an electrician or tips on saving, on our classifieds board you will always find verified professionals in the Services section, with listings automatically translated into Russian, Hebrew, English, and Arabic.
The Essence of the Reform and Who Private Suppliers Are
IEC remains the owner of the entire electricity grid and is responsible for power transmission, meters, and emergency maintenance. However, since 2018, every consumer in Israel can sign a contract for the supply of electricity itself with one of the private companies licensed by the Electricity Authority. These companies purchase electricity from producers (including from IEC itself) and sell it to you at their own price. In practice, you continue to receive the same electricity through the same wires, but your bill now has two parts: a transmission charge (stays with IEC) and a consumption charge (to the supplier company). Thus, you do not change the infrastructure, but only the seller of the resource—similar to how you can choose a mobile operator while keeping your number.
Comparison of Tariffs and Hidden Pitfalls
The main argument in favor of private suppliers is a lower price per kilowatt-hour. On average, private companies offer a discount of 5% to 25% compared to the regulated IEC tariff, which is set by the state. However, it is important to pay attention to the tariff structure. Some companies have a fixed price for the entire contract period (usually 1-2 years), while others have a floating price tied to fuel market prices. There are also often “free kilowatt” tariffs during nighttime hours, which benefit owners of electric vehicles or those who do laundry after midnight. Always check for a fixed monthly service fee—sometimes it negates all the savings from the discount. Additionally, all private companies do not charge a meter fee; it remains with IEC and is the same for everyone. We recommend using specialized calculator sites, but also read reviews from real customers—they are easy to find on our classifieds board in the From Hand to Hand section, where people often share their experiences.
How to Switch Without Losing Power
The switch is carried out without any technical work: you do not need to change your meter or call an electrician. The process takes 1-3 months, but a mandatory condition is that you have no debt with your current supplier. You choose a company, sign a contract (all documents are in Hebrew, so it is recommended to ask for a translation or take a Russian-speaking consultant), and the company itself notifies IEC of the switch. During the transition period, you may receive two bills: one from the old company for consumption before the switch date, and the second from the new one. Importantly, power outages as a result of the switch are impossible because the grid is always maintained by the state company. However, if a private supplier goes bankrupt (such cases occurred in 2020-2022), you will be automatically returned to the IEC tariff without penalties. Therefore, choose major players with transparent reporting and a rating from the regulator.
Practical Tips for Reducing Consumption
Even with the best tariff, you will not save if you consume too much. Start simple: replace incandescent bulbs with LED ones (saving up to 80% on lighting), unplug devices instead of leaving them on standby (this “consumes” up to 5% of your bill), wash with full loads and at a temperature of 30-40 degrees. The air conditioner is the biggest energy eater in the Israeli climate: set it to 25-26 degrees and use the “fan” mode at night. Buy timers for your water heater so it only heats water during off-peak hours. Small improvements reduce your bill by an average of 10-15%. If you need professional help—for example, conducting an energy audit of your apartment or replacing wiring—look for specialists in the Services section. And remember: if you want to purchase energy-efficient appliances (like an A++ refrigerator or a dryer), private sellers often offer goods cheaper than stores—check the Cars (electric vehicles) and From Hand to Hand sections.
Conclusions: How to Choose the Best Option
Saving on electricity in Israel is a real task that can be solved in two ways: switching suppliers and changing habits. For most families, it is beneficial to switch to a private supplier with a fixed tariff for at least a year, especially if you are ready to keep an eye on promotions. However, if you have low consumption (less than 300 kWh per month), the difference may be only 10-20 shekels, and then it is simpler to stay with IEC to avoid complicating your life. Be sure to call the customer support of the chosen company: if you are kept on hold for a long time and get unclear answers, it is better to continue your search. Remember that switching is free and non-binding: you can return to the state tariff at any time.
Ultimately, the main tools for your savings are knowledge and comparison. Use our classifieds board not only to buy goods but also to find services of electricians, solar panel installers, and energy-saving consultants. Every listing on 4israel.co.il is automatically translated into English, Russian, Arabic, and Hebrew, so you can communicate with sellers and contractors in a convenient language, and also post your own listing that will be understood by all residents of Israel—from Haifa to Eilat. Start saving today: check your bills, compare tariffs, and change your energy habits. And may every saved shekel stay in your pocket.