Gad Dairies Sues Israel Electric Corporation Over Unannounced Power Outage Causing Major Damages

Gad Dairies, controlled by Ezra Cohen (38.76%) and managed by Amir Aharon, has filed a 330,000 shekel lawsuit against the Israel Electric Corporation (IEC) following a deliberate power outage without prior warning. The incident occurred one night in January last year at the company's factory in Bat Yam, where the power was cut from 2:30 AM until 7:15 AM. Even after power was restored, only two of the three electrical phases returned, preventing the operation of production systems and causing a shutdown lasting about ten hours.

The dairy claims the outage and subsequent voltage drop damaged 4,600 kilograms of cheese used for mozzarella and other products dependent on electrical control systems. This led to product spoilage, numerous customer complaints, and destruction of some products, with direct sales losses estimated at approximately 107,000 shekels. Additional damages included harm to equipment, machinery, raw materials, and finished goods. The factory required two days of repairs, replacing dozens of motors, connectors, lighting fixtures, and restoring other systems at a cost of tens of thousands of shekels.

Gad Dairies asserts that the power cut was a planned action by IEC, conducted without any prior notification, contrary to previous practices where such work was coordinated with the factory engineer or manager. The company also claims IEC failed to send a qualified electrician to restore the missing phase, causing further damage. Despite immediate complaints to IEC, the only response was that the outage was due to routine maintenance in the area. IEC had not responded to requests for comment by the time of publication.