75 million NIS to be returned to consumers: Court rules in favor of Noga
The Haifa District Court has authorized Noga to offset 75 million NIS from PSP Investments due to the shutdown of a pumped-storage facility. These funds will be redirected to benefit electricity consumers.
The District Court in Haifa has ruled that the Noga company is permitted to immediately begin offsetting funds up to a cumulative amount of 75 million NIS as part of ongoing legal proceedings against PSP Investments Ltd.
The proceedings concern payment demands totaling approximately 150 million NIS, following significant deviations from Electricity Authority standards due to the shutdown of a pumped-storage facility and failure to meet required availability levels during 2022 and 2023. The demand was formulated following a comprehensive audit conducted by Noga.
PSP Investments had requested a temporary injunction to prevent Noga from offsetting the debt from funds owed for its electricity market activities. The court denied this request, allowing Noga to immediately offset approximately 50% of the claimed debt.
The court determined that the payment demand was not arbitrary, but the result of professional and prolonged staff work, which included data analysis and rigorous verification processes.
"In accordance with the court's decision, Noga is permitted to offset up to 5 million NIS per month, up to a cumulative amount of 75 million NIS, effective immediately."
Under electricity market settlement mechanisms, the collected funds do not remain with Noga but are returned to the energy sector for the benefit of all consumers, potentially contributing to a reduction in electricity tariffs.
Regarding the remaining debt of approximately 75 million NIS, the court granted a temporary relief, ordering that no offsetting be performed until a final ruling is reached in the lawsuit.
Noga stated in an official release:
"We welcome the court's decision. As a government company managing the electricity sector, Noga works to encourage competition and support new market entrants. We have a duty to ensure all players act in accordance with market rules and legal provisions. Funds collected within these frameworks ultimately return to the electricity sector for the benefit of all consumers."
