Super Power Acquires Pazgaz Energy in NIS 25M Deal to Consolidate Israel Electricity Market

Residential electricity supplier Super Power is acquiring competitor Pazgaz Energy for up to NIS 25 million, reducing the number of active players in Israel’s private supply sector from seven to six, Globes reported on October 25, 2026. The buyout marks the first industry consolidation in a saturated market where participants currently operate at a loss or on extremely thin margins.

Super Power Acquires Pazgaz Energy for NIS 25 Million

Super Power—controlled jointly by Supergas Power, itself a subsidiary of Electra, and solar energy producer Enlight—will pay an initial NIS 15 million. An additional NIS 8 million to NIS 10 million will be paid depending on a settlement mechanism established between the companies to transfer the customer base. The total consideration reaches NIS 23 million to NIS 25 million.

The purchase price sits below one-fifth of the additional revenue the deal is expected to generate. Super Power estimates the acquired customer portfolio will add NIS 130 million annually. This revenue projection comes on top of the NIS 228 million the company generated from electricity supply during the first half of 2026, pushing its annualized supply revenue toward NIS 500 million.

Private Electricity Suppliers Struggle with Unprofitable Margins

The low acquisition price reflects widespread unprofitability across the residential electricity sector. Private suppliers act as intermediaries between low-cost renewable energy producers, primarily solar generators, and households. They offer flat discounts typically ranging from 5% to 7%—with higher cuts during off-peak hours—to entice customers away from the Israel Electric Corporation.

Around 450,000 Israeli households have switched to private suppliers since the Ministry of Energy opened the market. However, companies struggle to source sufficient volumes of cheap electricity to cover those discounts. Supergas Power reported a negative EBITDA of NIS 1 million for the first half of 2026, a slight narrowing from the NIS 1.3 million loss recorded in the first half of 2025.

Fragmented Market Forces Smaller Rivals to Weigh Exits

The Israeli residential power market is split between three major joint ventures and three smaller independent suppliers. The major tier includes Bezeq Energy, Cellcom Energy, and Super Power. The smaller tier comprises Amisragas Energy, HOT Energy, and Partner Power. With margins squeezed, industry watchers expect smaller firms to face mounting pressure to sell.

A market based on narrow margins necessitates economies of scale; what we are witnessing now is a natural process of the industry shedding players who failed to generate a critical mass of activity.

Lior Vider, Profit Multiplier

Vider noted that the acquisition confirms Super Power’s position as an aggressive market leader. He expects companies with deep pockets that absorb exiting client portfolios to dominate the sector in coming years.

Regulatory Shifts and Future Market Consolidation

Private suppliers are currently permitted to buy electricity solely from renewable producers, mainly solar installations. The Electricity Authority recently moved to reduce subsidies for rooftop solar installations, a shift expected to make those generation sources more readily available for private suppliers to purchase.

Conventional gas-fired power plants are expected to enter the private supply pool only at a later stage. Until then, suppliers continue operating on expansion models, absorbing short-term losses in anticipation of cheaper procurement channels and eventual market profitability.

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