Landsvirkjun’s EVP of Sales and Services, Tinna Traustadóttir, said there was a reason to celebrate that the energy security issue was finally on the agenda, as work on changing laws and regulations had commenced. For the longest time, Landsvirkjun had championed the importance of providing energy security for households and smaller companies. Large-end users had already ensured their interests in long-term agreements.
Tinna pointed out that Landsvirkjun alone cannot ensure energy security. Energy generators and the government must join hands to ensure that the state of these matters is satisfactory. Competent institutions and the government must have an overview.
As is, no one party has an overview or can inform us to what extent households are ensured energy security. However, predictability is vital in a growing market.
Tinna stated that Landsvirkjun’s wholesale market share is 50%. There, agreements with a duration of several years were made with electricity retailers that sell energy to households and smaller companies. This ensures predictability.
The other 50% of the wholesale market originates from retailers that generate energy. These companies are not legally bound to continue selling their energy to households and smaller companies. Instead, these companies might start selling their energy to data centres, land-based aquaculture, electric fuel generators, or microalgae production, which would generally be fine. However, there should be a reservation rule, as selling energy to the retail market for households and smaller companies carries obligations.
Furthermore, Tinna emphasised the necessity of separating the market for households and smaller companies from the market for power intensive customers. The energy must be delivered to the right places, but currently, there is a danger of leakages between the two markets. It could be tempting for energy intensive customers to knock on doors in the wholesale market, but that market is intended for the general public.
Therefore, it is imperative to ensure that households will never have to compete with power intensive customers for energy security.