Competition chief rejects departing Landsvirkjun CEO’s criticism

The head of Iceland’s Competition Authority has rejected criticism from the outgoing chief executive of energy company Landsvirkjun, saying the authority’s structure meets legal standards. He was responding to an opinion article by Hörður Arnarson published in Morgunblaðið on Friday, mbl.is reported.

Earlier this month, the Competition Appeals Committee overturned the authority’s decision to fine Landsvirkjun 1.4 billion krónur and sent the case back for a new examination and decision. The case concerns Landsvirkjun’s sale of electricity to power grid operator Landsnet to cover transmission losses from 2017 to 2021.

Arnarson said the appeals committee had found serious flaws in the authority’s investigation and handling of the case. He questioned whether the current arrangement sufficiently separates investigation, assessment of alleged violations and decisions on penalties, describing the authority as “investigating, prosecuting and judging.” He also called for the structure to be reviewed.

Páll Gunnar Pálsson, director of the Competition Authority, said the arrangement is in line with practice across much of the European Economic Area. He said the European Court of Human Rights had confirmed that the same body may investigate and decide on violations and penalties, provided courts have full power to review its decisions.

Pálsson said the arrangement had also been upheld by Iceland’s Supreme Court and found to comply with the constitution. He pointed to cases that have been reviewed by the Competition Appeals Committee and the courts, including the Supreme Court.

Arnarson also criticized authority staff for allegedly expressing negative views about Landsvirkjun publicly while the investigation was under way. Pálsson disagreed, saying the authority’s role includes taking part in public debate about competition, including in the electricity market.