Cellcom kicks off electricity revolution
Israel’s electricity reform is underway, with cellular company Cellcom being the first to get into the private energy business. It has entered the field of supplying electricity to private and business customers through Cellcom Energy, its joint venture with Meshek Energy, Cellcom said Monday.
As part of a reform led by the Electricity Authority, a major revolution in the field of electricity is expected in the next decade, and the electricity market should look completely different.
Israel Electric, the government-owned company that supplies nearly all of the nation’s electricity needs, will compete with other suppliers to offer energy-efficiency solutions and value propositions of electricity combined with extra services. A growing portion of the energy will be produced using renewable sources, and most of the vehicles sold in Israel will be electric or hybrid.
The electricity sector will be more competitive, innovative and cost-effective for the customer, according to the reform.
“The field of electricity is the next field that will undergo a revolution in the next decade, and
as someone who has successfully revolutionized the field of communications, Cellcom will be here to offer the public the best offer and savings in service costs,” Cellcom CEO Avi Gabay said.
Cellcom Energy said its customers would enjoy significant discounts on their electricity bills, as well as a long list of benefits in electricity and energy, as “the first step in the electricity supply revolution in Israel.” This is subject to obtaining the relevant licenses,
it added.
Households currently pay the electricity company an average of NIS 6,000 a year and would save about NIS 500 a year using Cellcom Energy, the company said. A medium-sized business that pays NIS 50,000 a year would save up to NIS 4,000 a year, and a large business that spends NIS 1 million a year on electricity would save up to NIS 80,000 a year, depending on usage, it said.
Customers would also receive a set of “smart” sockets and switches that would give them greater control over power consumption and their hot-water heaters, as well as information about their energy consumption history and the relative costs of running individual electric devices.
Electric-vehicle owners would also be eligible for discounts on the installation of a home charging station, discounts on the use of public charging stations throughout the country and a discount on car insurance tailored to electric-car owners.
In the future, it plans to offer electricity storage, management and charging of electric vehicles in residential buildings and business centers.
Cellcom Energy will also encourage its customers to install renewable-energy products and will offer a significant discount on the installation of solar panels, it said.
About 70% of consumers are willing to switch to another supplier other than the IEC, according to a survey conducted by Cellcom Energy. Of those, 81% are most interested in reducing costs, while 45% said better customer service would be a reason to switch.