Electricity Tariff Update

Electricity sector reform and structural change Competition in the supply segment ☐ ☐ חברת החשמל Israel Electric On September 7, 2022, the Electricity Authority issued a decision on a market model for generation and storage facilities that regulates the activities of generation facilities in the distribution segment, and particularly their possibility of selling electricity directly to suppliers. The quotas for suppliers as determined by the electricity authority will be removed as part of opening the supply market to competition. Renewable energy storage facilities ☐ ☐ On January 25, 2023, the electricity authority published a decision which details the principles and volume by which IEC will be allowed to construct storage facilities by 2030, within the area of substations only and subject to receiving a storage license. The decision determines that the company's market share will be 15% of the total storage volume promoted by the private sector, in the previous year, and that in general, the storage deployment will be carried out in accordance with a plan that will be approved by the Noga Company. Source: IEC's Financial Statements for 2022FY and for 9M.2023 Investor Relations 16

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