The board of directors of the municipal utility company Reykjavík Energy (Orkuveita Reykjavíkur) agreed yesterday to reduce hot water prices by 1.5 per cent. According to Reykjavík Energy in inflation adjusted terms, this means that hot water prices have fallen by 5 per cent since last year.
In July and August of 2003, Reykjavík Energy increased hot water prices by 3.8 and 5.8 per cent in two successive price hikes. The adjustments caught residents of Reykjavík by surprise, not least since it was justified by warm temperatures in the two preceeding years. This was the first time in the history of Reykjavík Energy that prices fluctuated in tandem with the notoriously fickle Icelandic weather. Yesterday’s price adjustment was not explained in meterological terms.