Leasing Period is Too Long, Says Minister of Industry Skip to content

Leasing Period is Too Long, Says Minister of Industry

Minister of Industry Katrín Júlíusdóttir believes that the contract between Reykjanesbaer and HS Orka regarding use of energy resources goes against the spirit of the law. She sees the leasing period, 65 years, as too long. Fréttabladid reports this today.

Minister of Industry Katrín Júlíusdóttir.

Júlíusdóttir told Fréttabladid that the maximum time of usufruct is 65 years. However, discussions between the government and the future right holders are assumed to take place when half that time has passed. The conclusion of those discussions could be the prolongation of the agreement but just as well its dissolution. The contract between the municipality and HS Orka has the premises that “HS Orka is entitled to the prolongation of the using rights by the end of the agreement, in concordance with the present law.”

“I consider this to as going against the spirit of the law. I have requested response from the municipality. People are out of line by automatically assuming that there will be an extension of the agreement,” Júlíusdóttir said.

According to the mayor of Reykjanesbaer, Árni Sigfússon, the agreement perfectly complies with the legislation. They waited to draw the contracts until the law was ready. He says that they will gladly look into the matter, as long as the municipality will not suffer.

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