Reykjavík Energy to Raise Prices Skip to content

Reykjavík Energy to Raise Prices

CEO of Reykjavík Energy (OR) Haraldur Flosi Tryggvason announced yesterday that prices of electricity and hot and cold water to individuals and companies will increase. He wouldn’t say by how much but assumed an increase of a two-digit percentage point.

The headquarters of Reykjavík Energy. Photo by Páll Stefánsson.

According to Morgunbladid, OR’s income for such services amounted to ISK 14-15 billion (USD 116 to 124 million, EUR 91 to 98 million) last year. A price increase of ten percent would mean ISK 1.4 billion (USD 11.6 million, EUR 9.1 million) in additional income for OR.

“Our current aim is to guarantee short-term payment [of debts] within the next 13 to 18 months. At the same time, long-term stability must be ensured and that means that we have to make sure that there is a natural consistency between income and expenses,” Tryggvason said.

According to, OR’s debt has grown tenfold in the past ten years and now amounts to almost ISK 250 billion (USD 2.1 million, EUR 1.6 million). The increase in pricing is said to be necessary to save OR from bankruptcy.

The board of OR will meet on Friday and set a policy on pricing.

Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article