You can pay 20% less for electricity

If you have never chosen or switched your electricity supplier, there is a significant chance that you are one of the people paying too much. The reason is that Iceland's largest electricity suppliers have both the largest number of customers and the highest standard rate.

At Straumlind, we want to help Icelandic households to lower their electricity costs, so we will explain:

• Why some are paying too much for electricity.

• How you can find out what you are paying for your electricity.

• How to use that information to pay less.

Why are some people paying too much?

Part of the reason is how the price list of large electricity suppliers are designed. They often advertise a specific product at a low price, while the standard rate, which a large portion of customers pay, is considerably higher.

As a result, new and lower-priced offers primarily benefit customers who actively compare prices and take advantage of cheaper options. This pattern can be observed in many markets, not just electricity.

Seeing advertisements for lower prices may give consumers the impression that there is active and healthy competition in the market.

A consumer may conclude that they automatically benefit from these lower-priced offers and therefore do not need to take any specific action, such as switching electricity suppliers or checking whether their current supplier offers a lower rate.

Unfortunately, that is not the case. In Straumlind's view, the pricing structures of the major electricity suppliers maintain high standard rates for long-term customers and decreases competition.

How can I see what I am paying for electricity?

1. Get your most recent electricity bill. You only need to find two figures:

   • The total cost you are paying, for example ISK 3,891.

   • The number of kWh you used, for example 300 kWh.

2. Calculation: ISK 3,891 (total cost) divided by 300 kWh (usage) equals ISK 12.97 per kWh.

3. This means that you are paying ISK 12.97 for each kWh of electricity.

How can I use this information to pay less?

Once you know what you are paying per kWh, it is easy to compare that figure with Straumlind's standard rate of ISK 10.54 per kWh.

Perhaps you don't even have to calculate: Straumlinds standard rate is approximately 20% lower than the standard rates of the largest electricity suppliers. It is actually that simple!

Straumlind also offers Prepaid Electricity at ISK 9.80 per kWh and Night Time Discount, where the rate is ISK 7.03 per kWh from 11:00 PM to 7:00 AM (Night) and ISK 10.54 per kWh from 7:00 AM to 11:00 PM (Day).

7 August 2026