Israel Electric Company to spread debts without interest for 1 more day

The debts of Israel Electric Company customers jumped to half a billion shekels.

Illustrative photo of Israeli money (photo credit: MARC ISRAEL SELLEM)
Illustrative photo of Israeli money
(photo credit: MARC ISRAEL SELLEM)

The Israel Electric Company launched a campaign to spread out customers' debt, but it is only valid for another day. 

The promotion, meant to last until the end of the month of November 2022, has the blessing of the company's new CEO Meir Spiegler and VP of Service Oren Hellman.

Spiegler, who until recently served as the CEO of the National Insurance Institute, has a lenient approach to the payment behavior of customers. He's also backed by court decisions, which encouraged the company to find mitigating solutions before cutting off a customer's electricity. 

Customer debts in arrears increased during 2022 by 20% and are estimated to be half a billion shekels. A third of the debts are from business customers.

 Israeli money bills. (credit: PIXABAY) Israeli money bills. (credit: PIXABAY)

Where did most of the Israel Electric Company customer debt come from?

Most debts accrued from the beginning of 2020 because of the agreement to postpone payments during the COVID-19 crisis. One can pay off debts in three payments without linked differential interest or fees. Those who wish to spread it into four or five payments will be charged 30% of the linkage differences and the accrued interest.

IEC management emphasizes that enforcement measures will be taken against customers who don't pay their debts by the end of the month, including cutting off the electricity. However, for disadvantaged customers, alternative payment solutions will be found, and their electricity will be kept on.