Electricity Company Noga Allowed to Offset 75 Million Shekels Against PSP Investments Debt

The Haifa District Court has ruled that the Israeli electricity company Noga may immediately begin offsetting funds up to a total of 75 million shekels in an ongoing legal dispute with PSP Investments Ltd. The case concerns payment demands issued by Noga amounting to approximately 150 million shekels. These demands relate to significant breaches of standards set by the Electricity Authority, specifically due to the shutdown of a pumped storage facility and failure to maintain required availability levels during 2022 and 2023.

Noga's payment demand followed a comprehensive professional audit and review. PSP Investments sought a temporary injunction to prevent Noga from offsetting the debt against funds owed to PSP from electricity market activities, but the court denied this request. The court confirmed that Noga’s demand was the result of thorough and professional analysis rather than an arbitrary decision.

Under the court's decision, Noga can deduct up to 5 million shekels monthly until reaching the 75 million shekel cap. These funds will not remain with Noga but will be returned to the electricity market, potentially lowering electricity tariffs for consumers. The remaining debt of about 75 million shekels is currently protected from offset until a final ruling is made.

Noga emphasized its commitment as a government company to promote competition, support electricity producers, and ensure all market players comply with regulations. The company stated it will continue to act responsibly and transparently to protect public interest and fully exercise its legal rights in the ongoing proceedings.