Prime minister rejects concerns over ESA scrutiny of Landsvirkjun

Icelandic Prime Minister Kristrún Frostadóttir said she was not concerned about the EFTA Surveillance Authority (ESA) examining Landsvirkjun, the state-owned energy company, over possible political interference. She made the remarks in parliament on Monday, according to mbl.is.

Frostadóttir was responding to a question from Progressive Party MP Stefán Vagn Stefánsson about Landsvirkjun and the departure of its chief executive, Hörður Arnarson. Arnarson resigned earlier this autumn after 17 years in the role and left at the end of last month.

Arnarson had voiced concern about changing relations between Landsvirkjun and the Finance Ministry. He feared political interference by the company’s board could make it unable to operate and expose it to legal risks, including under European Economic Area rules on state aid.

Stefán asked whether Frostadóttir shared those concerns and whether she was worried that ESA might begin an investigation on its own initiative, and what effect that could have on Landsvirkjun.

“I am not concerned about ESA’s involvement in this case. It is entirely normal for institutions and companies to be monitored,” Frostadóttir said.

She said Finance Minister Daði Már Kristófersson had carefully explained the nature of meetings he held with Landsvirkjun’s board without the chief executive. Those meetings have been central to the dispute, and Arnarson cited them as one reason he believed the board lacked confidence in his work.

Frostadóttir said she had full confidence in the finance minister and believed he had made all the information available. She also said parliament could examine the matter further if it wished, noting that the minister had responded positively to that possibility.