Israeli Court Allows Electricity Operator Noga to Offset Millions Against Private Company Debt

The Haifa District Court has ruled in favor of Noga, the company managing Israel's electricity system, permitting it to immediately offset up to 75 million shekels from PSP Investments, the operator of the pumped storage facility at Ma'ale Gilboa. This sum represents half of Noga's total payment demand of approximately 150 million shekels. The dispute centers on Noga's claim that during 2022 and 2023, the storage facility failed to meet the availability standards set by the Electricity Authority. Noga's payment demand followed a thorough professional process involving data collection and operational reviews.

PSP Investments sought a court injunction to prevent Noga from deducting the funds until the lawsuit is resolved, but the court rejected this request. Under the ruling, Noga may deduct up to five million shekels monthly until reaching the 75 million shekel cap. The remaining 75 million shekels will not be offset until a final legal decision is made.

Noga explained that these funds do not remain with the company but are returned to the electricity sector, potentially lowering system costs and eventually affecting consumer electricity tariffs. However, Noga cautioned that this court decision does not guarantee immediate reductions in electricity bills, as tariffs are set by the Electricity Authority based on multiple factors.

In a statement, Noga welcomed the court's decision, emphasizing its role as a government company promoting competition and ensuring all market players comply with regulations and standards. The company affirmed its commitment to transparency and protecting public interest while pursuing its legal rights in this matter.