Future of Reykjavík Energy Company Discussed Skip to content

Future of Reykjavík Energy Company Discussed

Minister of Industry Össur Skarphédinsson had an informal meeting with the directors of the Reykjavík Energy Company (OR) and members of Reykjavík City Council yesterday to discuss whether to change how the company is operated.

“Judging by the firm declarations of Reykjavík Mayor Vilhjálmur Th. Vilhjálmsson and head of the city council Björn Ingi Hrafnsson I don’t worry that OR will be privatized,” Skarphédinsson told Fréttabladid.

Vilhjálmsson said at the meeting that OR should continue to be owned by the Icelandic community, despite potentially being changed into a corporation.

The minister said he does not oppose the proposal to change OR from a state-owned company to a corporation, which could prove a successful way to operate the company and contribute to the expansion of the Icelandic energy industry into foreign markets.

But Skarphédinsson added that hot and cold water should continue to be owned by the community.

Svandís Svavarsdóttir, the city council’s Left Green (Vinstri graenir) representative said that she is disappointed in the minister’s positive response to the proposition of changing OR into a corporation.

The board of OR has already accepted a proposition from the company’s owners that it will become a corporation after January 1, 2008.

Reykjavík City is by far the largest shareholder with 93.5 percent of the share, the Town of Akranes holds 5.5 percent, Borgarbyggd municipality 0.76 percent and Borgarfjardarsveit community 0.17 percent.

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