Super Power Acquires Paz Gas Energy for 25 Million NIS in First Market Consolidation
Private electricity supplier Super Power is acquiring competitor Paz Gas Energy for up to 25 million NIS, reducing market players from seven to six in Israel's evolving energy sector.
The private electricity supplier Super Power is acquiring its competitor Paz Gas Energy, reducing the number of market competitors from seven to six. Controlled by Supergas Power (itself controlled by Electra) and solar energy producer Enlight, Super Power will pay up to 25 million NIS for the acquisition. This is a relatively low amount compared to the additional revenue expected to be generated for the company, estimated at 130 million NIS annually. The reason for this is that the sector remains unprofitable for market players, or alternatively characterized by very low profitability.
Market Consolidation and Household Savings
Private electricity suppliers act as intermediaries between cheap electricity producers, mainly from renewable sources, and Israeli households. Electricity suppliers receive guaranteed customers, while households enjoy a flat discount usually ranging between 5% and 7%, or a higher discount during off-peak electricity consumption hours. Today, about 450,000 households have already moved to private electricity suppliers, a move actively encouraged by the Ministry of Energy. On the other hand, electricity suppliers struggle to obtain a sufficient amount of cheap electricity to sell to their customers.
"This acquisition marks a clear establishment of Super Power as one of the aggressive and leading players in the market," wrote Lior Vider from Mechpil Revach.
The Future of Private Electricity
Super Power announced the acquisition on Thursday evening. The deal includes an initial payment of 15 million NIS, and an additional 8-10 million NIS depending on a settlement mechanism. In total, the consideration will stand at 23-25 million NIS. Super Power will increase its revenues by 130 million NIS annually, adding to the 228 million NIS it generated from electricity supply in the first half of 2026, bringing its annual run rate to nearly 500 million NIS.
