RARIK announces compensation for electronic device damages caused by power outages across Iceland

RARIK, the local electricity provider in Iceland, has announced plans to compensate customers for electronic devices that were damaged or destroyed due to a fault in the Landsnet distribution system in early October. Customers will receive compensation equivalent to the cost of a new device of similar quality, but they are not required to use the payout for purchasing new equipment.

The incident, which resulted in power outages across the country, affected many household appliances. RARIK has taken over the management of customer communications and claims processing in collaboration with the TM insurance company. All damaged electricity meters will be replaced, and customers are encouraged to cooperate with contractors sent by RARIK.

In addition, RARIK will provide compensation for devices that failed during outages that can be repaired and will take into account that electronic devices may malfunction weeks or even months after disruption. Customers have until January 3, 2025, to report damages; reports submitted afterwards will be assessed individually. However, indirect damages such as travel costs, inconvenience, and loss of time will not be compensated, although shipping costs for devices or spare parts will be covered. Non-functional equipment will be collected from customers.

RARIK also expressed regret over misleading information from Sjóvá, an insurance company linked to Landsnet, regarding the eligibility of claims for damages caused by the power outages.