Haifa Court Orders Partial Payment Hold in Dispute Over Gilboa Pumped Storage Facility

The Haifa District Court partially accepted PSP Investments' request regarding a payment dispute with Noga, the electricity system operator. Noga had demanded 150 million shekels from PSP, which operates the Gilboa pumped storage facility, intending to deduct this amount from monthly payments to PSP. The court ruled that Noga cannot deduct 75 million shekels at this stage but allowed gradual deduction of the remaining 75 million shekels at up to 5 million shekels per month until the main lawsuit is resolved.

The dispute stems from the prolonged shutdown of the Gilboa facility from September 2022 to mid-July 2023 for repairs and maintenance. Noga claims PSP failed to meet availability requirements during this period, causing costs to the electricity sector that PSP should cover. PSP argues the payment demand lacks legal basis and that Noga has no authority for unilateral deduction. PSP also contends the charge is based on complex forecasts and models, not a straightforward sum subject to contract deductions, warning that such deductions could severely harm its cash flow and ongoing operations.

PSP is represented by attorneys Giora Ardinast, Amichai Wasertail, and Saar Inbar Ben-Zeev, while Noga is represented by Ilan Sofer, Yonatan Dori, and Noam Briman. The court emphasized balancing the parties' rights, preventing Noga from deducting half the amount immediately but permitting gradual deductions of the rest. PSP Investments is owned by InfraRed (49%), PowerGen (25.5%), and Shikun & Binui Energy (25.5%). The Gilboa pumped storage facility, operational since 2020, has a 300 MW capacity, generating electricity by pumping water to an upper reservoir and releasing it through turbines to a lower reservoir.