Israeli Private Electricity Customers Face Major Retroactive Bill Adjustments
Thousands of Israelis using private electricity suppliers face major billing corrections due to discrepancies between estimated consumption and actual readings on old meters. The issue will persist until nationwide smart meter deployment is completed by 2028.
Thousands of Israeli households using private electricity suppliers are facing dramatic billing corrections of up to 1,000 shekels per month due to discrepancies between estimated consumption and actual meter readings. The issue exclusively affects older, basic electricity meters and stems from the gap between monthly estimates calculated by Noga, the independent system operator, and physical readings conducted by the Israel Electric Corporation.
The reform in Israel's electricity sector has successfully opened the market to private suppliers, allowing consumers to purchase discounted power. While customers were originally required to install smart meters to switch suppliers, Energy Minister Eli Cohen expanded access to allow basic meter holders to join discount plans as well. However, physical meter readings occur only once every two months, and access issues can sometimes delay actual readings for months.
Once physical readings are finally recorded, Noga issues retroactive corrections to private suppliers, who must then bill or credit customers accordingly. Dudi Landsman, CEO of Super Power, noted that the discrepancies damage suppliers' reputations as confused customers express frustration over unexpected charges. The Israel Electric Corporation emphasized that customers ultimately pay strictly for the electricity they consume, and plans are underway to replace all 3.6 million meters nationwide with smart meters by the first quarter of 2028.
