Landsnet’s tariff is prepared in accordance with the revenue cap determined by the National Energy Authority of Iceland (Orkustofnun). The tariff applies to general consumers on the one hand and power-intensive industries on the other hand. Transmission fees are independent of the distance travelled by the power through the grid as well as the distance between the sites where the power is injected into and drawn from it.
The transmission fee is based mainly on the amount of power drawn from the grid by distributors and power-intensive industries at delivery points. There are two types of charges: a capacity charge and an energy charge.
The capacity charge is calculated on the basis of the average of the four highest 60-minute monthly power peaks of the year for each delivery point. The energy charge is calculated from each MWh transmitted via Landsnet’s grid. A fixed annual delivery charge is payable for all supply/delivery points connected to the grid, whether for power supplied into or drawn from it.
There is also a charge for ancillary services and transmission losses, at a fixed amount per each kWh drawn from the grid. The purpose of this charge is to cover the expense of Landsnet’s purchasing of these services at any given time. The tariff for consumption by power-intensive industries is in US dollars. Other items are denominated in Icelandic krónur (ISK).
A discount may be given on the tariff for transmission that leads to more efficient use of the grid, such as for curtailable electricity. This applies to, e.g., delivery and transmission at voltages higher than 66 kV. We may curtail curtailable electricity without compensation in case of disturbances in the system.