Household electricity costs increased by 11%
The Electricity Inspectorate proposes improvements in the Icelandic electricity market due to large price increases for various parties in the market. Household electricity costs have risen in recent years, but significantly higher for companies.
The aim of the improvements is to increase transparency, improve the competitiveness of the business sector and ensure more efficient use of electricity.
This was stated at a press conference by Jóhann Pál Jóhannsson, Minister of Environment, Energy and Cells, together with the Ministry of Electricity Authority recently.
Loud debate about the development of electricity prices
On January 31 last year, the Ministry of Environment, Energy and Climate, a report on the development of electricity costs in Iceland and the impact on consumers and the business community. It was not least because of a loud debate about the development of electricity prices in Iceland.
According to the report, which Hanna Björg Konådsdóttir, Head of the Electricity Authority, has reviewed, household electricity costs have risen by 11% since 2020 at constant prices.
It is noteworthy that the lowest retail price of electricity decreased in 2005 to 2020 at constant prices by 10%, which is attributed to great competition in that market. On the other hand, if prices are simply considered for each year, the increase is 78%.
Corporate electricity costs raised even more
The transfer of large users has risen by 36% since 2020 at constant prices at the same time as aluminum electricity electricity costs have risen by 25% at constant prices.
Corporate electricity costs (2-20 GWh) have risen by 24% at constant prices since 2020.
Among the proposed in the report is the improvement of data collection and analysis of electricity prices, simplified corporate reporting in the industry and strengthening the electricity consumption of power users.
It is also called for the rules of conduct and penalties to be clearer and that information on electricity security be regular.
Environmental analysis of concessionaires
It is proposed that a special efficiency analysis be carried out on concessionaire companies that handle the transmission and distribution of electricity.
It is also proposed that increased follow -up to the implementation of smart meters for distribution utilities, but according to the report, household distribution costs have increased by 14% at constant prices since 2020.
Emphasis is placed on increased data disclosure to strengthen the debate on the development of electricity costs and to support decision -making both government and companies.
Possible reforms of the Electricity Act are also proposed, which relate to reviewing the provisions of the Electricity Act and the regulation on exemptions in the tariffs of distribution utilities. The general legal authorization is also proposed on the development of transport tariffs.
