Ministers Critical of Merger Skip to content

Ministers Critical of Merger

By Iceland Review

Thorgerdur Katrín Gunnarsdóttir, Minister of Education, and the deputy leader of the Independence Party believe that last week’s merger of the two energy companies Reykjavík Energy Invest and Geysir Green Energy was too hasty.<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

However, in an interview with national radio RÚV, Gunnarsdóttir stressed that she does not oppose the merger since the majority of Reykjavík’s City Council approved it. Furthermore, she welcomes recent proposals that Reykjavík Energy sell it holding in Reykjavík Energy Invest, since the former company is a public entity whose mandate should be to provide the capital with water and electricity.

Also quoted by RÚV, Össur Skarphédinsson, Minister of Industry and MP for the Social Democrats, agreed with Gunnarsdóttir about the hastiness of the merger, which he believes should have undergone more political scrutiny. Skarphédinsson maintains that the merger should have awaited new legislation on energy from the Althingi, <?xml:namespace prefix = st1 ns = “urn:schemas-microsoft-com:office:smarttags” />Iceland’s parliament. One of the goals of the draft of legislation is to ensure that energy resources will remain under public ownership and public organizations will own the majority of shares in companies that distribute water and energy.

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