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Landsvirkjun's request to sell unreliable supply of electricity to companies in fish drying activity where geothermal energy is not available

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  • Case number: 30/2019
  • Date: 17/10/2019
  • Company:
    • Orkusalan ehf.
    • Landsvirkjun
  • Sectors:
    • Energy
  • Policy Area:
    • Excemptions
  • Summary

    By Decision no. 30/2019, the Competition Authority has authorized Landsvirkjun to conclude agreements with retail companies to sell unreliable supply of electricity to companies engaged in fish drying activity where geothermal energy supply is not available in Iceland. The objective was that end-users in question would receive electricity at a lower price than in general wholesale contracts and would be prepared to undergo certain conditions regarding this unreliable supply of electricity in return. It was stated by Landsvirkjun that the company objective, through the sale of umreliable electricity, was primarily to utilize excess energy from the company's processing system and thus prevent water from flowing untilized to the sea. The purpose of the above sale was also to reduce pollution caused by the use of oil for various types of heating.

    According to Landsvirkjun's plans, the Icelandic Competition Authority came to the conclusion that the conditions of Article 15 for exemption in the Competition Act is fulfilled, as all electricity retailers are offered to enter into contracts for unreliable supply of electricity to fish drying companies in the so called cold districts in Iceland with the obligations imposed by this sale. It is also up to the retailer of the electricity in question to determine retail prices for this electricity to the relevant fish drying companies. Landsvirkjun's requested for exemption on the basis of Article 15. of the Competition Act was therefore accepted.