GCA Financial Targets for Government Companies
The Electricity Tariff Updates
2022
חברת החשמל
Israel Electric
On February 1st, 2022, the household electricity tariff increased by 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 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.
2023
On January 1st, 2023 the household electricity tariff increased by 8.2% mainly due to an ongoing and sharp increase in the
global coal prices (about 150% in the last 1.5 years). Additionally, to the prohibition of the Ministry of Environmental
Protection to operate old NG units at Eshkol site, which forced to increase The electricity production in coal, delaying the
construction of the new 2 CCGT in Hadera, as well as delaying conversion of coal units to NG in Hadera and Ashkelon and
the increases at the interest rates and Israeli consumer price index.
On February 1st, 2023, an amendment was made to the annual update of the electricity tariff for 2023, in which the
household tariff decreased by 1.5% due the extension of reduction of the excise tax on coal.
On April 1st, 2023, additional amendment was made to the annual update of the electricity tariff for 2023, in which the
household tariff decreased by 2.4% following the reduction in coal prices and their stabilization since the beginning of the
year.
Source: IEC's Financial Statements for 2022FY, Electricity Authority's decisions no. 62302 as of 01/24/22, no. 63006 as of 04/12/22, no. 63308 as of 07/27/22, no. 64504 as of 12/21/22 and no. 64801 as of 01/26/23 -
electricity tariff to IEC's consumers
Investor Relations
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