ENERGY IN ICELAND - Orkustofnun

5 RegulatorystructureLegislation onelectrical energyOddur SigurðssonYellow roses in a greenhouse. Many greenhousesuse geothermal heat and artificial lighting to extendthe growing season.The Electricity Act, No. 65/2003,based on EU Directive No. 96/92was enacted in mid-2003. The Actincludes aspects of the Inland WatersAct, No. 15/1923; the EnergyAct, No. 58/1967; the Act on ElectricGenerating Stations, No. 60/1981;and Acts on individual energy enterprises.The objective of the ElectricityAct is to encourage an economicalelectricity system, thereby strengtheningIcelandic industry and regionaldevelopment. In addition, the Actis intended to create a competitiveenvironment for the generation andsale of electricity, foster efficiency and cost-effective transmission and distributionof electricity, ensure the security of the electricity system and the interests of its consumers,and promote utilization of renewable energy sources.In accordance with the Electricity Act, Landsnet, a limited liability company, was establishedto provide the electrical transmission and system operation services. The com-The Electricity Actof 2003The 2003 Electricity Act creates a competitive environmentfor the generation and sale of electricity.The transmission and distribution of the electricityis on a non-competitive basis.30