Investor Presentaiton

The Electricity Tariff Tariff Structure חברת החשמל Israel Electric 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% ■The Annual Update 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 Tariff update as of August 1st, 2022 On February 1st, 2022, the household electricity tariff increased by approximately 5.7%, following the EA decision, mainly due to the increase in the global coal prices. The above was partially offset by: ⚫ Decrease in the USD/NIS exchange rate and in the global NG prices • The sale of Ramat Hovav Power Station (half of which was recognized in 2021 Tariff) and the publication of the results of the tender for the sale of East Hagit Power Station On May 1st, 2022, an amendment was made to the annual update of the electricity tariff for 2022, in which the average household tariff decreased by 2.4% due to the reduction of the excise tax on coal. On August 1st, 2022 the household electricity tariff increased by 8.6% mainly due to an ongoing and sharp increase in the global coal prices and other metrics, which at the beginning of July 2022, reached an increase of appx. 20% in relation to the previous recognized cost. Source: IEC's Financial Statements for 2020FY, Electricity Authority's decisions no. 62302 as of 01/24/22, no. 63006 as of 04/12/22 and no. 07/27/22 - electricity tariff to IEC's consumers Investor Relations 24 24

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