The power company SEV is an inter-municipal community, owned by all the municipalities in the Faroe Islands, and therefore owned by the people of the Faroe Islands.
SEV is based on joint and several liability, a democratic organisation. Most of the profit, from sales of electricity, is spent on future developments of supply productions and the power supply system. In this way everybody profits, and developments can be carried out parallel to progress in society, which requires more demand for electricity.
SEV is obliged to supply power to all citizens, companies and organisations 24-hours a day. SEV has sole responsibility for power quality and the power supply system in the Faroe Islands.
The Faroe Islands are an isolated island society. The option of buying electricity from neighbouring countries does not exist. The obligation to supply power as well as run the power supply system results in a 24-hour obligation. It is SEV's responsibility to have enough capacity to keep the system running at full blast, to fix technical problems and problems with production units, which for whatever reason break down.
SEV is organised with a Board of Directors and a management for the everyday running of the company.
On a general meeting every fourth year the municipalities elect seven members for the Board of Directors, which governs the company. The General Manager heads the daily management in cooperation with two Directors.