IEC Transmission Segment Development Plan 2023-2027
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%
■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
Source: IEC's Financial Statements for 2022FY
Investor Relations
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