CEO of the Consumer Council, Adv. Ehud Peleg: Given that this is a disadvantaged population, the public interest demands that these needy individuals be taken care of, and the appropriate method is through a class action suit.
In a suit filed through the legal firm of Aaronsohn, Aboulafia & Co., and Adv. Ofer Levi, the Consumer Council has asked that the court orders the Israel Electric Corporation to immediately carry out its obligations under the Electricity Law; the court is being asked to give practical effect to the provisions of the law, and determine what type of advertising the lawmaker aimed at – that is, in which media advertisements should be placed, how often, and what would constitute appropriate advertising (for example, in which languages such advertising should be made, given the target audience entitled to benefits).
On 2007, Amendment to the Electricity Law came into effect and established the right of disadvantaged populations to pay a reduced rate for electricity. This amendment was aimed at easing the situation of those who found it difficult to meet the costs involved in using electricity. The legislator authorized the Minister to determine the eligibility of additional population groups, where necessary.
The Electric Corporation is required to grant this benefit based on computerized lists with details of those entitled, provided to it by the National Insurance Institute or the Holocaust Survivors’ Rights Authority in the Ministry of Finance. However, those who appear on those lists, but are not considered as “registered customers” of the Electric Corporation, have fallen between the cracks. Hence, regulations were enacted that the Electric Corporation should, from time to time, publicize through the media information as to entitlement to reduced payments, so as to raise awareness and allow those who are not registered with the Electric Corporation to apply to it for the discounted rate.
However, an investigation carried out by the Consumer Council shows that the Electric Corporation has not carried out this obligation. Data obtained indicates that there are approximately 46,000 people who are entitled to the reduced rate but who do not receive it.
In light of the fact that this is a disadvantaged population, which includes Holocaust survivors and the disabled, there is an overriding public interest to ensure that those needy individuals obtain the benefits to which they are entitled, and the appropriate method of doing so is through a class action suit.
CEO of the Consumer Council, Adv. Ehud Peleg, says that consumer rights are not meant to be a dead letter on the law books; it should be ensured that the authorities enforce them, and that business corporations respect them.
The Council’s CEO also added that the failure to publicize the right of a disadvantaged population to obtain a discounted price for electricity is effectively the same as denying that right, and this is contrary to the intention of the legislature.
