The debts of Reykjavik Energy went down by ISK 12 billion (USD 99.5 million) between the first and second quarters of this year due to the strengthening krona. Despite that, the company is to increase its prices to consumers by 28.5 percent.
Consumer groups are advising Reykjavik residents to compare prices between energy providers and change if they can get a better deal with a different company.
The price hikes announced on Friday by Reykjavik Energy amount to 28.5 percent; but the competition can only benefit from 11 percent of that amount. The remainder is in standing charges which consumers pay to Reykjavik Energy regardless of which company they buy their electricity from, RUV reports.
Thuridur Hjartardottir, director of The Consumers’ Union, says that there has not been competition in the Reykjavik electricity market since the new energy laws came into effect in 2003. There is now a chance for the first time, despite the price rises, for competition to take hold. She believes that this massive price hike will spur more people to search for a better deal elsewhere – adding that the various energy companies’ prices can be compared on the website www.ns.is.