The Protection of Consumers in the Israeli Energy Market

Research Study on Consumer Protection in the Israeli Energy Market

In recent decades, the Israeli government has aimed to enhance efficiency and competition in the electricity market. To achieve this goal, the Knesset has implemented several reforms since the 1990s. The most significant reform was the decision to require the Israel Electric Company to sell some of its electricity production facilities and establish a government company to manage the network. This move would enable the gradual privatization of the electricity production segment.

In addition to the measures taken to promote competition in the electricity sector, Israel has discovered significant natural gas reserves. This discovery prompted the Israeli government to shift its focus from coal-based electricity production to natural gas-based production.

The transition from coal-based electricity production to natural gas-based production in Israel led to the emergence of a monopolistic center of economic power in the energy market, specifically the natural gas partnerships.

We examine a series of processes in the Israeli energy market in a study titled ‘The Protection of Consumers in the Israeli Energy Market’, which will be published in a book about the protection of consumers in energy markets by Routledge, as following:

  1. The effort to promote efficiency and competition in the electricity market for the benefit of the consumer.
  2. The necesity of significant regulation to safeguard the interests of consumers in the electricity market, in light of the challenges they face in protecting themselves.
  3. The impact of the natural gas monopoly, that has been emerging in Israel, on the protection of electricity consumers.
  4. The use of state security and foreign relations considerations as factors that take precedence over consumer interests in the energy market, as well as the prevention of legal tools to protect consumers, including in the field of civil law.
The study highlights the impact of security and foreign policy considerations on the competition in the electricity and energy markets. It also proposes solutions to address the erosion of consumer power in these fields.