The Haifa District Court has determined that Noga Independent System Operator Ltd. may start offsetting up to NIS 75 million right away in its ongoing case against PSP Investment Ltd.

The case centers on Noga payment claims of roughly NIS 150 million tied to major shortfalls from Electricity Authority standards after the pumped storage facility closed and failed to meet availability targets in 2022 and 2023. Noga prepared the claim through detailed professional review and data analysis.

PSP had sought a temporary order blocking Noga from deducting the sum from market payments owed to it. The court rejected that request and permitted Noga to proceed with offsets covering about half the total claim immediately.

The ruling noted that the demand followed extended professional review rather than hasty action. Noga reviewed operational records, checked benchmark compliance, gathered information, and completed full verification before issuing the claim.

The offset process: Funds return to the public

Under the decision Noga may deduct as much as NIS 5 million monthly until reaching the NIS 75 million cap, effective at once.

Market settlement rules require that recovered amounts stay within the electricity sector and benefit all consumers, which may help lower overall tariffs.

For the remaining NIS 75 million the court granted interim protection so no further offsets occur until the lawsuit reaches final judgment.

Party responses: Noga supports ruling while PSP plans appeal

Noga said it welcomes the outcome that endorsed its stance and enables prompt collection of a substantial debt portion. The company emphasized its role in fostering competition and new entrants while ensuring compliance with rules and protecting public interest. It added that collected sums return to the sector for consumer benefit and that the claim followed thorough work aligned with authority benchmarks.

PSP said it will seek Supreme Court leave to appeal and request a stay of execution. It argued that if its position prevails Noga must repay all offset amounts. PSP also claimed the calculations contain errors and rest on estimates and assumptions, while affirming its ongoing compliance with standards.