The Competition Authority has today published a decision to impose a 1.4 billion króna fine on Landsvirkjun. Following a detailed investigation, the Competition Authority has concluded that Landsvirkjun seriously abused its dominant market position through its pricing of electricity in Landsnet's tenders between 2017 and 2021. Landsvirkjun's pricing in the relevant tenders meant that its customers, who purchased electricity from Landsvirkjun and participated in Landsnet's tenders in competition with Landsvirkjun, could not sell the electricity without making a loss.
The conduct of Landsvirkjun worked against new and smaller competitors in the electricity market gaining a foothold and thus increasing competition for the benefit of businesses and individuals.
Páll Gunnar Pálsson, Director-General of the Competition Authority:
„Effective competition in the electricity market is crucial for Iceland's competitiveness and the interests of its residents. If managed correctly, effective competition can contribute to energy security, accelerate the energy transition, foster other innovations and secure a favourable electricity price for the future.
In this light, it is crucial how large, well-established electricity companies, often publicly owned, conduct their business. This decision is about that.“
The decision is accessible here.
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