Demanding circumstances on the electricity market

Circumstances on the electricity market are currently extremely demanding.

Price hikes and closures on the wholesale market

Wholesale prices have risen substantially in the last few months. In addition to that Landsvirkjun has closed its trading platform which has decreased access and predictability on the wholesale market.

Straumlind waited as long as possible to raise its prices hoping that some of the price hikes and trading restrictions would bounce back. Unfortunately, that has not happened, and a price increase was inevitable.

Questionable business practices on the retail market

Competition is fierce on the retail market and unfortunately Straumlind has become aware of some questionable business practices of its competitors. 

Smaller electricity sales companies that have recently entered the marked offering lower prices and innovation are clearly targets of electricity sales companies that want to protect their status on the market. A free and fair competition cannot thrive if anti-competitive behaviour and dishonest business practices are not stopped.

Straumlind has sent several complaints to the National Energy Regulatory (Orkustofnun), the Competition Authority (Samkeppniseftirlitið) and the Consumer Agency (Neytendastofa). No action has been taken by these agencies yet even though some of the complaints are more than a year old.

Legislative bill pending in Parliament (Alþingi)

Before Christmas the Icelandic Parliament (Alþingi) attempted to approve a change in the Electricity Act that had the objective to guarantee electricity access of households and regular businesses.

Unfortunately, this attempt failed, and the bill is still being discussed. And since there has not been a conclusion to what the legal framework will be the market is at a standstill.

Frozen

Therefore, it can certainly be said that the electricity market has a likeness to the Icelandic winter => Its frozen!

2 February 2024