1.    Introduction

We congratulate on the new gas reform, which was approved by the Knesset under the framework of the Gas Market Law (Promotion of the Domestic-Consumption Gas Competition), 5768-2008. 

It is one of the most important reforms lead by the Ministry of National Infrastructures in recent years, which is likely to contribute significantly to the LPG (cooking gas) market in Israel. 

In this chapter we provide you with plentiful and available information about the new law and its principles, as well as a Q&A base which can assist you. Further information concerning safety and gas consumption is published in the Ministry of National Infrastructure’s website under the subject of LPG (cooking gas). 

Therefore, prior to addressing our ministry, we recommend that you review the plentiful information and we hope that you shall make the most out of the contents provided in the website, which will promote the gas reform. 

2.    Objectives of the new law and its importance to the gas market.

2.1  Increase of competition in the gas market

The objectives of this law, among other things, are to reduce the obstructions that domestic gas-consumers were facing when transferring between gas companies, to prevent the gas companies from including limiting conditions in the indentures between them and domestic gas-consumers, to oblige the gas companies that distribute gas nationwide to supply gas to any domestic gas-consumer who does not receive their services and wishes to do so, in the area in which their services are supplied, in conditions similar to the conditions under which they supply gas to similar domestic gas-consumers. The objectives include also the increase of mobility of consumers between gas companies and thus increasing the competition in the gas market, cutting down prices and promoting the gas reform. 

2.2  Raise gas safety level 

Moreover, the new law comes to regulate the obligation of the gas company to the consumer and the gas installation within its responsibility. This responsibility includes, among other things, an obligation to test the gas system prior to the supply of gas to the gas system and during the supply of the gas to the installation, an obligation to sign an indenture with the gas consumer, to insure the company against liability for any occurrence and more, and so raise the safety level in the LPG (cooking gas) market in Israel. 

3.    Principles of the gas market reform 

3.1  Prohibition on making contact by the current gas supplier with the gas consumer, for a duration of 6 months. 

After a gas supplier received a termination notice from a gas consumer, the current gas supplier is prohibited from contacting the consumer and offering him any benefits concerning the gas supply. This, for a duration of 6 months from the day the termination notice was given. 

3.2  Prohibition of unreasonable refusal of a gas supplier to give a gas supplying service 

A gas supplier which distributes gas nationwide, shall not refuse to give gas supplying service to a domestic gas-consumer who does not receive its services as aforesaid and wishes to do so, in the same area in which it already supplies gas, under similar conditions to those by which it supplies gas to a similar domestic gas-consumer, except if it showed that reasons exist, which justify withholding the service under similar conditions. 

3.3  Prohibition on the inclusion of limiting conditions in a contract signed between a gas supplier and a consumer 

A gas supplier shall not include in a contract for the supply of gas, conditions which have in them to burden on a domestic gas-consumer’s ability to switch between gas suppliers, or to impair the competition in the gas market. 

3.4  Obligation of the current gas supplier to sell the gas receptacle to the new gas supplier 

The current gas supplier is obliged to sell the gas receptacle to the new gas supplier which is interested in it, in a price determined in the Order of Control over Prices of Consumer Goods and Services (Price of a Static LPG Cylinder), 5769-2009. 

3.5  Obligation of the gas supplier to conduct a test verifying that the gas installation is in order 

The new gas supplier is obliged to conduct a test that verifies that the gas system is in order prior to supplying the installation with gas. Every gas supplier must conduct periodical tests on all the consumers it supplies gas to, and it shall not supply gas to an installation of a consumer who did not allow the conductance of the aforesaid test. 

3.6  Obligation of the gas supplier to have a written indenture with the gas consumer 

The gas supplier shall only supply gas to a consumer he has a written indenture with for supplying gas (in the matter of a contract for supplying gas made on 1.1.08 and on, including reference to changes in the terms of an existing contract and extension of the period of a contract). 

3.7  The gas supplier is obliged to insure himself against liability for any occurrence, in a sum that shall not be less than the sum in NIS which equals 5 million U.S Dollars. 

4.    The new law for the promotion of competition 

The Gas Market Law (Promoting the Competition in Domestic-Gas Consumption) (Amendments to Legislation), 5768-2008, is available for review in whole in the Ministry of National Infrastructure’s website. It is noted that the full version as it appears in official publication is the version that determines and obliges. 

5.    List of the licensed gas suppliers  

In Israel, 30 licensed gas suppliers, which received from the Ministry of National Infrastructures a license for distributing gas to the public, are operating. Therefore, before you sign a contract with a gas supplier we recommend that you inquire whether the supplier appears on the licensed suppliers list, which includes also addresses and telephone numbers.