Appeals panel overturns Landsvirkjun’s 1.4 billion króna fine

Iceland’s Competition Appeals Committee has overturned a 1.4 billion króna fine against power company Landsvirkjun and sent the case back to the Competition Authority for a fresh review and decision, mbl.is reported.

The case concerns Landsvirkjun’s sale of electricity to Landsnet to cover transmission losses. Landsvirkjun appealed the authority’s decision more than a year ago, saying it disagreed with the findings and the market definition on which they were based.

The appeals committee said the case had not been fully investigated before the Competition Authority issued its decision. It found significant shortcomings in the investigation, including an inadequate definition of the relevant markets and insufficient examination of whether the alleged price squeeze could harm competition.

Landsvirkjun said the ruling highlighted the need for clear and predictable rules and market definitions before penalties are imposed. The company said increasing its market share was not the aim of its participation in Landsnet tenders; rather, it sought to ensure an adequate electricity supply for transmission losses and thereby support electricity security.

The Competition Authority will now decide how to proceed with the case.