Fees and cost

Connection fee will probably be included in the energy price, but based on the assumption that the customer will take or pay for a minimum amount of energy. Network charges are not included in the energy price.

An energy charge is to be negotiated with the power companies of Iceland.

If the customer can accept part of the power supply as secondary power, the price may be substantially lower. The bulk of electric power in Iceland is sold as primary energy from a system dominated by hydroelectric sources. That means that it is delivered any time when the customer needs it at a high security rate.

Due to the variation in river flows, customers in the Icelandic power system can negotiate to take out a certain amount of the total energy as secondary energy. The secondary energy is sold at a lower rate than the primary energy, but the delivery is only guaranteed up to a specific minimum amount. Thus power-intensive industries, which have a certain flexibility to reduce consumption during dry spells, can find it beneficial to take a part of the power at a lower price in the form of secondary energy.

Long-term contracts can be negotiated up to approximately 20 years. This is based on the assumption that the power price will be linked to some officially registered variable, such as a price production index.

The reliability of delivery of primary power in the Icelandic power system is similar to the primary power delivery of any western European country. Power prices can be negotiated based on the reliability of power supply that the customer needs.


The municipality of Skagafjörður
Skagafirðingabraut 21   |   550 Sauðárkrókur   |   Tel: +354 455 6000   |   Fax: +354 455 6001   |