Increase in electricity prices

While inflation has had a substantial impact on electricity prices throughout Europe, electricity prices in the Faroe Islands have hitherto not been affected.

SEV has been able to maintain a steady electricity price seemingly unafffected by inflation and increasing oil prices, mainly thanks to a well functioning hedging programme.

However, it is no longer possible to fend of inflation and hiking transportation costs of oil etc. and as of 1 January, electricity prices in the Faroe Islands have increased for retail as well as business customers.

"The price hike is necessary", said Kári Johansen, chairman of the Board of SEV, "however, it is not a considerable increase and will not affect households or the competitive power of the industry."

In the last decade, electricity prices in the Faroe Islands have increased by 6.8% in total, while the cost-of-living index has seen a 13.3% rise in the same period.