Supergaz Power to Compensate Customers 36 Million Shekels in Class Action Settlement

Supergaz Power has agreed to compensate its customers with a total of 36 million shekels following a class action lawsuit. The settlement, submitted for approval to the Central-Lod District Court, covers hundreds of thousands of customers who consumed domestic gas through a central gas system from January 1, 2017, onwards. The compensation includes 20 million shekels paid directly to existing customers and an additional 16.5 million shekels in future discounts, all inclusive of VAT.

The settlement arose after mediation led by retired Judge Hila Gerstel. Customers will receive equal compensation via credits on their gas bills, and future benefits will be applied automatically by matching the gas price to the lowest tariff available within the same central gas system. Prior to court approval, Supergaz committed to maintaining the lowest tariff among customers sharing the same system for four years.

Attorney David Schwartzbaum, representing the class, explained that if one resident negotiates a lower price, all residents connected to that central system will automatically benefit from the reduced rate. The class action was filed in 2021 after a plaintiff discovered that neighbors connected to the same gas system were paying lower rates due to individual negotiations, with price differences ranging from 33.96 to 66.88 shekels per cubic meter.

The lawsuit claimed Supergaz violated the State Arrangements Law by offering different contract terms to customers on the same gas system. Supergaz argued it notified customers with similar consumption capacity about changes and invited them to request updated contract terms, but the parties dispute whether this notification met legal requirements.

Lawyers for the class will receive 3.175 million shekels plus VAT in fees, and the lead plaintiff will receive an additional 1.125 million shekels plus VAT. The case highlights consumer rights regarding fair pricing and transparency in utility services.