Nordic report on wholesale electricity markets

6 May 2024

A new study by Nordic Energy Research on the electricity retail market in the Nordic countries highlights opportunities for improvements to enhance consumer welfare and trust. The study examines the functioning of electricity retail markets across the Nordic nations by assessing regulations, competition, and customer satisfaction individually for each country. The aim is to identify common practices and promote mutual learning among these countries.

The Icelandic electricity market has seen increased competition over recent years, but it still falls short of the competition levels in other Nordic countries. There are currently nine electricity retailers in Iceland, with the five largest holding an 85% market share. The dominance of Landsvirkjun and the limited functioning of the wholesale electricity market are noted as major barriers to enhanced competition. This situation is further complicated by the absence of a financial market for electricity, posing challenges in risk management and competitive pricing for general consumers.

For more detailed insights, you can read the full article here.

For a video presentation on the research paper that provides further information, you can view here.