mai 10, 2025
Home » Increased income actually leads to a loss of income

Increased income actually leads to a loss of income

Increased income actually leads to a loss of income


Examples are that income that generates to municipalities from energy plants is less than the reduction in contributions from the Municipal Equalization Fund, which often follows following increased income. Municipalities therefore even suffer from financial damage caused by energy infrastructure on their land.

Sylvia Vilhjálmsdóttir, project manager at KPMG, held a presentation on the distribution of revenue from wind power plants at a seminar on the status of wind energy today.

« A common question we get from municipalities is about how much their income from the Equalization Fund would be reduced. It is important to see if these new income would cover the reduction and even go somewhat,  » Sylvia said at the seminar earlier today.

Real estate fees do not cover the impairment

Haraldur Þór Jónsson, a spokeswoman in Skeiða- and Gnúpverjahreppi, says that, for example, Rangárþing external will probably be subject to a higher reduction from the Equalization Fund than corresponds to the real estate fees that the Vadölduver Vadölduver will deliver.

« We in the municipality submitted very detailed data that was calculated by KPMG in 2023, where we showed the interaction of these factors in our municipality, in some cases we are in direct losses but in other cases in a small benefit, but the real benefits of this great energy production.

Energy infrastructure exempted by law

Haraldur points out that energy infrastructure is exempt from the Act on Property Taxes, with the exception of the station house itself. However, a new government intends to submit a bill this fall to correct this, according to Harald.

« If this exemption is abolished, it will lead to more municipalities being independent on land and will even become independent of the equalization fund. The municipalities will then be able to build a strong infrastructure and create competitive living conditions. This will also create this incentive that is lacking in order for communities to unite that increased energy production will be built up to improve the quality of life in the local community. « 

Skeiða- and Gnúpverjahreppur receives no income from the Hvamms power plant.

Computer image/Landsvirkjun

Are exposed but not receiving income

Haraldur says that despite the fact that the various power plants have a detrimental effect on the municipality, the income does not result in Skeiða- and Gnúpverjahreppur.

« Búrfellslundur (now Vaðölduver) is on the municipal boundaries and we are truly affected by the power plant, but we receive no income. Hvamms power plant, where hydroelectric power that lies in our municipality is not giving us no income because the station house is in Rangárþing exterior and the same applies to the Holtvirkjun power plant. These are enormous projects that have a huge impact and we get no income from this, it can't be as it is. « 



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