Lawyer warned state links could pass information between power rivals
Tuesday 3rd November 2026 on 22:15 in
Iceland
A lawyer warned that contacts between the government and companies in the electricity market could allow information or instructions to pass between competitors, mbl.is reported.
Jóhannes Karl Sveinsson said the state’s ownership of Landsnet, RARIK and other companies in the electricity market made it important to safeguard Landsvirkjun’s independence from the authorities.
He made the warning in five pages of legal advice sent to Landsvirkjun’s then-chief executive, Hörður Arnarson, on August 31. The advice was linked to Arnarson’s concerns about increased contact between the company’s board and the Ministry of Finance and Economic Affairs.
In a memorandum to the board in June, Arnarson warned that the contact could be interpreted as political interference in Landsvirkjun’s operations, with possible consequences under European Economic Area state aid rules. He resigned in September and left his post on November 1. The board and the ministry have denied that any laws were broken.