Faroe Islands energy monopoly to end as private companies gain right to sell electricity

The Faroese state energy company SEV will lose its exclusive right to sell electricity directly to consumers, following a new agreement that allows private firms to offer bundled energy solutions, Kringvarp Føroya reports.

Under the revised terms, SEV will continue to sell electricity in wholesale markets, but private companies will now be permitted to purchase and resell it to end users. The agreement, signed earlier this week, explicitly states that “SEV buys and sells all electricity transmitted via its grid, either in wholesale or retail. Private companies must be able to provide comprehensive solutions to private customers.”

This means that if a consumer buys a product like a heat pump, the supplier will also be allowed to sell them the required electricity—a provision that was not included in previous agreements.