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Merger Could Become Annulled

Some of the representatives of the new majority coalition in Reykjavík’s City Council argue that the controversial merger of Reykjavík Energy Invest (REI) and Geysir Green Energy should be annulled.

Just before the merger went through, the board of directors of Reykjavík Energy, the sole owner of REI, accepted a agreement which would oblige the parent company to provide REI with exclusive technical expertise in the field of geothermal research, as well as planning and marketing, for the next 20 years. The contract was submitted to the board at the meeting, but only in English. According to national radio RÚV, it seems that some of the board members didn’t fully understand the implications of the contract.

Interviewed by RÚV, Thorbjörg Helga Vigfúsdóttir, representative of the Independence Party said that this information changed the premises of the merger and the board meeting where the merger was decided should be annulled. In an interview with Morgunbladid daily today, Björn Ingi Hrafnsson of the Progressive Party says that new board meeting could be held, which implied that the decisions of the previous meeting would no longer apply.

In the same news story, Margrét Sverrisdóttir of the Liberal Party argues that the decision should be annulled and Svandís Svavarsdóttir of the Left Greens agrees. In fact, Svavarsdóttir has taken legal action against Reykjavík Energy to have the meeting invalidated. Dagur B. Eggertsson, the new mayor, did not want to express his opinion on the matter until the whole affair had been scrutinized.

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