Israeli Ministry of Electricity revises the statute of “Hevrat-Hashmal” and the instructions guiding its activity in favour of the consumers.

In accordance with the current legislation “Hevrat-Hashmal” statute does not allow for automatic disbursements to the consumers for the violations committed by the company. The consumer may only assert his rights in court.

In accordance with the new rules, in case “Hevrat-Hashmal” fails to fulfil its obligations, it will be obliged to pay compensation to the consumers suffering from its activity, directly with no legal action taken.

Compensations will be transmitted to the account of the consumer or deducted from the consumer’s electricity payroll at the choice of the latter. The non-payment of compensation in the fixed period will entail the same sanctions as the consumers bear for the failure to meet their obligations.

Fines in favour of consumers are to be introduced gradually. On the first stage reimbursements will be claimed for untimely basic service. Basic service comprise connecting to electric main, fixing electricity network, being responsive to consumers’ complaints and correcting miscalculations in payrolls.

“Hevrat-Hashmal” is to respond to consumers’ complaints in the written form within three weeks’ time. Otherwise, a penalty interest of 10% of an average daily electricity rate is imposed.

The legislators are planning to further extend the list of services, falling under the system of fines.

Besides, the new rules contain a significant benefit, which is their stretching to the private companies. The latter are supposed to enter the market as a result of the reform implementation.