Electricity Tariff Update

The Electricity Tariff חברת החשמל Israel Electric Tariff Structure In accordance with the Electricity Sector Law, the electricity tariff is set by the Electricity Authority (EA) and reformulated from time to time. The outline of the formula is as follows: Recognized costs per segment (e.g. fuel costs, operational costs, depreciation costs and financial costs). Some of the recognized costs are also attributed to funding the reform costs Fair rate of return on equity per segment Electricity Tariff Ongoing Update Actual costs are examined every 2 weeks by the EA (at the time of CPI and fuel prices changes) Discrepancies between forecasted costs and actual cost are reconciled on the earlier of: • A difference of 3.5%, provided that 3 months have passed since the last update A difference of 5.5% Annual Update Once a year, the current year's costs are updated based on forecasts as well as on previous years' reckoning - the gap between the previous year's forecast components and the actual costs of the previous year • The Annual Update Source: IEC's Financial Statements for 2022FY Investor Relations 44

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