The Ministry of Energy and Infrastructure presented today (Monday) a dramatic plan to reduce the cost of living in the domestic gas industry.
The published data reveals distortions: It turns out that the question of how much you pay for cooking gas does not depend on production costs, but mainly on your bargaining power and the company that supplies gas to your building.
An examination by the Ministry of Energy and Infrastructure shows that there are significant gaps in domestic gas prices between companies, which add up to hundreds of shekels per year. The gap between the average price for a bimonthly invoice in the 12 largest cities is more than 100 percent, with the most expensive average price being 130 shekels, and the cheapest being 63 shekels.
In Jerusalem, for example, for an average bimonthly invoice for a tank exchange, you will pay 164 NIS to the most expensive supplier, and 74 NIS to the cheapest, a difference of 90 NIS, more than 100 percent, with a potential savings of 550 NIS per year for the consumer.
The Ministry of Energy believes that publishing this data on a monthly basis, along with the steps promoted by the ministry, will put pressure on suppliers and increase competition, leading to savings for the consumer.
With the intention of reducing the cost of gas for domestic use, the Ministry of Energy and Infrastructure today presented a 'national plan' with a number of steps that will change the face of the market:
• The Fuel and Gas Administration will publish a monthly price survey that will reveal the gaps between companies according to local authorities, types of service and infrastructure.
• The gas price comparison calculator on the Ministry of Energy's website has been upgraded, allowing every citizen to receive up-to-date data according to their place of residence quickly and adapted to mobile devices.
• The Ministry of Energy is promoting a 'reform' that will make it easier to switch from one company to another. As part of the reform, an outgoing supplier will be required to sell infrastructure components, such as gas meters, regulators, and other equipment, to an incoming supplier, at a controlled price.
• Benefits achieved in negotiations between a customer and a gas company will be maintained for at least one year, except for those related to the price of raw materials.
• Suppliers will be required to give 60 days' notice of any price change.
• The process of selecting the gas supplier in new buildings: The supplier will be selected competitively between several companies already at the initial contracting stage, or alternatively, based on the supplier offering the lowest price according to the Ministry of Energy data in that place of residence.
Minister of Energy and Infrastructure Eli Cohen: "Our plan includes steps to remove barriers and make repairs in the gas market, which will help increase competition and lower prices for the consumer. The plan will increase transparency, and make switching between suppliers quick and simple. We will continue to operate on the path of a free economy with social sensitivity, to increase competition, remove barriers and lower prices for all citizens of Israel."
Director of the Fuel and Gas Administration, Batsheva Abuhatzira"The Fuel and Gas Administration is leading a broad and comprehensive initiative to deepen competition in the LPG market and increase consumer awareness, with the goal of making things easier for households and reducing costs. Within this framework, the Administration is promoting a series of steps - from a significant upgrade of the price comparison website, through ongoing publication of data to increase transparency, to regulatory amendments that reduce barriers and facilitate switching between suppliers. These steps allow the public to make more informed decisions and save hundreds and even thousands of shekels a year, in an easy, simple and transparent manner.""
For more information, price comparisons, and use of the firm's digital tools, you can visit the website Ministry of Energy and Infrastructure.
