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State Aid

State Aid: No aid to Landsvirkjun

26.9.2018

PR(18)24

EN | IS

The EFTA Surveillance Authority (ESA) concluded today that state guarantees for Landsvirkjun's hedging derivatives did not involve state aid.

Landsvirkjun is an Icelandic state-owned energy company and one of the largest producer of renewable electricity in Europe. As such, the company competes with other large scale electricity manufacturers on the continent to attract energy intensive industry to Iceland. Landsvirkjun is exposed to foreign currency exchange risk as well as interest rate risk on its debt portfolio and uses various derivative contracts to hedge these risks. The Icelandic state has granted guarantees for some of Landsvirkjun's hedging derivatives.

In 2017, ESA started an investigation to look into whether the state guarantees were in line with EEA rules. After an inquiry, ESA finds that Landsvirkjun did not gain an economic advantage through these state guarantees and has therefore closed the case.

For further information, please contact:

Ms. Ásta Sigrún Magnúsdóttir
Communications officer
tel. +32 2 286 18 78
mob. +32 490 57 63 59




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