On 10 September 2019, the EFTA Surveillance Authority (the ESA)* handed down a decision where it ruled that energy prices, set in an arbitral award, which a private company had to pay to the Icelandic State-owned energy producer did not amount to State aid.
In the case at hand, a dispute had arisen between Elkem Iceland (Elkem), a ferrosilicon producer, and Landsvirkjun (Landsvirkjun), the Icelandic state-owned energy producer, concerning the price to be paid by Elkem to Landsvirkjun for energy supply.
Pursuant to the contract between Elkem and Landsvirkjun, the dispute was referred to arbitration.
In May 2019, the arbitral tribunal handed down its award in which the tribunal set the energy price to be paid by Elkem to Landsvirkjun.
However, concerned that such an arbitration-set energy price could amount to State aid, Iceland notified the arbitral award to the ESA for an assessment with State aid rules.READ MORE