Change in Electricity Price Determination Mechanism in Israel Starting 2026

SadaNews - The mechanism for determining electricity prices in Israel is set to change from annual updates to quarterly updates (every 3 months), making the tariff more closely linked to fluctuations in fuel prices, the dollar, and the consumer price index, starting from 2026. Additionally, prices will initially increase by between 1.3% and 2.5% in the first quarter of 2026, which means a monthly increase on the average household bill ranging from 6 to 11 shekels. The Israeli Electricity Authority will implement a major investment plan to develop the electricity network and build new stations at a cost of 90 billion shekels by 2030, and these expenses will gradually be added to electricity prices. Meanwhile, the Israeli Electricity Company will make the way of calculating electricity prices transparent as follows: 70% for the consumer price index, 20%-25% for the dollar price, and the remainder for coal prices and the interest rate.