Debate on REI Continues in Reykjavík City Council Skip to content

Debate on REI Continues in Reykjavík City Council

Representatives of the parties holding seats on the Reykjavík City Council had a heated debate on the potential sale of Reykjavík Energy’s (OR’s) holding in Reykjavík Energy Invest (REI) at an outstanding city council meeting yesterday.

Mayor Vilhjálmur Th. Vilhjálmsson said the members of the Independence Party within the council all agreed that after six to seven weeks, when the merger between REI and Geysir Green Energy (GGE) is completed, the process of selling OR’s shares should begin, Morgunbladid reports.

Björn Ingi Hrafnsson, representative of the Progressive Party, disagreed claiming he did not want an immediate sale of OR’s share. “I find it unadvisable.”

Dagur B. Eggertsson, representative of the Social Democrats, said there had always been a cross-political agreement that OR would hold a share in projects related to investments in foreign energy markets, which would be financed by private parties.

Eggertsson claimed that is a common procedure in many other countries and advised against following the proposal of “nervous Independence Party members” to sell OR’s shares immediately after the merger.

Svandís Svavarsdóttir, representative of the Left Greens, has already filed a lawsuit, which will be expedited by the Reykjavík District Court, regarding the legality of the OR owners’ meeting held to vote on the merger.

At yesterday’s meeting it was revealed that the ombudsman of the Althingi parliament had issued 12 questions, most regarding the merger between REI and GGE, to the owners of OR, that is, Reykjavík City Council, and the local authorities of Akranes and Borgarbyggd municipalities.

The questions include whether matters of equality had been considered when Bjarni Ármannsson, who will serve as chairman for REI’s board after the merger, purchased shares in REI worth ISK 500 million (USD 8.3 million, EUR 5.8 million) and whether the shares he purchased had been previously owned by OR.

Click here to read more about the REI debate.

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