Super Power Buys Pazgaz Energy as Israel's Power Resellers Merge
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Super Power, a residential electricity supplier in Israel, is acquiring its competitor Pazgaz Energy. The deal reduces the number of players in the sector from seven to six, and Globes calls it the first consolidation in a fairly saturated market.
Supergas Power, which controls Super Power, announced the purchase to the stock exchange on Thursday evening. The price is an initial NIS 15 million plus a further NIS 8 million to 10 million, depending on a settlement mechanism for transferring Pazgaz's customer base, for a total of NIS 23 million to 25 million. The company says the deal will add NIS 130 million to Super Power's annual revenue, on top of NIS 228 million from electricity supply in the first half of 2026.
A market without profits
Residential electricity suppliers act as intermediaries between producers of low-cost power, mainly renewable, and households. Customers get a flat discount, typically 5% to 7%. About 450,000 households have moved from Israel Electric Corporation to private suppliers, a shift encouraged by the Ministry of Energy.
The suppliers struggle to source enough cheap electricity, which makes profit hard to reach. Pazgaz Energy is currently operating at a loss, and Supergas Power itself reported negative EBITDA of NIS 1 million for the first half of 2026, down from a NIS 1.3 million loss a year earlier. Only renewable producers, mostly solar, may sell to private suppliers for now.
The sector is split between three large players, Bezeq Energy, Cellcom Energy and Super Power, and three smaller ones: Amisragas Energy, HOT Energy and Partner Power. Globes says the smaller three could become acquisition targets. Super Power offers the highest flat discount available to the general public, 6.5%.
Lior Vider of the investment consultancy Profit Multiplier called the deal "clear confirmation of Super-Power's position as one of the most aggressive and leading players in the market," adding that a market with narrow margins needs economies of scale.
Source: Globes