A platform for trade in electricity between electricity suppliers
New arrangement for power agreements with suppliers
Landsvirkjun has been working on the development of new sales contracts with energy suppliers to households and businesses. This new type of contract took effect at the beginning of 2017. The new arrangement is an important juncture for Landsvirkjun as the contracts completed in 2005 will shortly expire after being valid for 12 years.
The new contractual arrangement means that suppliers are no longer bound to purchase energy for a one-year period therefore increasing the Company’s ability to sell power at shorter notice.
Electricity consumption is generally lower during the summer months and suppliers can achieve greater efficiency by purchasing less power each time. Landsvirkjun can also use this as an opportunity to improve the scheduling of maintenance, enabling the Company to sell power at shorter notice to those who need it.
The new arrangement will improve the utilisation of energy resources in Iceland, enabling energy companies to be more flexible and therefore better able to respond to any operational changes.
Lower price average
According to projections supplied by energy suppliers to households and businesses, the average price decreased by 1.6% (fixed prices) in 2017 as a result of the introduction of these new contracts.
Energy purchase savings
Suppliers are no longer bound to purchase energy for a one-year period from Landsvirkjun. This will lead to increased energy efficiency as well as lower overall costs to the customer.
Short-term purchases support increased efficiency in energy utilisation
Increased short-term purchases and decreased energy purchase commitments will allow Landsvirkjun’s customers to fully utilise the energy available within the energy system which supports increased efficiency in energy utilisation. This also enables energy companies to be more flexible.
Utilising the summer period
Suppliers need significantly less energy during the summer months. Landsvirkjun can use this period to carry out planned maintenance, enabling them to sell power at shorter notice.
Projections show that the amount of energy sold to the wholesale market is expected to decrease slightly. Landsvirkjun sells a total of 2 TWh to suppliers on an annual basis.