Scope The following are the terms and conditions of HS Orka ehf., ID No. 680475-0169, Svartsengi, 240 Grindavík.
These terms and conditions apply to all business and contractual relationships between HS Orka and its customers, including electricity sales contracts, unless otherwise specifically agreed. These terms and conditions are considered standard contracts for electricity transactions between the sales company and the general user according to Article 7, Paragraph 4 of Regulation No. 1050/2004. By making the first payment of the electricity bill, the customer confirms their service relationship with HS Orka, as well as the validity of these terms and conditions, thereby establishing a valid electricity sales contract. These terms and conditions apply to all electricity sales contracts, whether made in writing, orally, electronically, or confirmed by the first payment of the electricity bill. Note that these terms and conditions apply only to the sale of electricity, not to its transmission and distribution.
The sale of electricity by HS Orka is governed by the Electricity Act No. 65/2003, the Regulation on the Implementation of the Electricity Act No. 1040/2005, and the Regulation on Electricity Transactions and Measurements No. 1050/2004.
Usage By requesting to do business with HS Orka, the customer authorizes the company to obtain information about the customer’s electricity usage from the relevant distribution system operator or Netorka. The authorization includes information such as the supply and meter number, distribution area, address, distribution tariff, estimated annual usage, average usage, last reading, metering method, meter status, multiplication factor, and number of digits on the meter. If the supply is time-metered, usage data for up to 24 months back may be provided. The distribution system operator is responsible for measuring the customer’s energy consumption within its distribution area. To estimate energy consumption, the company uses the customer’s electricity usage. If the customer is new and has not previously purchased electricity, HS Orka may estimate their usage based on comparable usage.
If the customer is switching suppliers to HS Orka, the contract takes effect in accordance with Article 10 of the Regulation on Electricity Transactions, which states that a general user may terminate an electricity sales contract with a sales company with three weeks’ notice during its term, effective at the next month-end.
Prices and Payment Terms Prices are according to HS Orka’s general price list at any given time, unless otherwise agreed. The general price list is always updated and published on HS Orka’s website and is also shown on the customer’s bill. The energy charge (ISK/kWh) is paid for each measured energy unit in direct proportion to energy consumption.
The energy price includes only the price of the electricity sales component. In addition to collecting the energy price, HS Orka collects taxes and fees related to electricity usage according to applicable legislation, such as the energy tax. Changes in taxes or fees will affect the amount collected, for example, if charges for the input of electricity from HS Orka’s power plants or power plants from which HS Orka purchases electricity are imposed on the company by public transmission or distribution entities, HS Orka reserves the right to collect these charges from its customers on monthly bills in proportion to usage. Value-added tax, as determined by the Value-Added Tax Act No. 50/1988, is added to the electricity charge plus the energy tax according to Article 5 of Act No. 23/2009 in accordance with the law.
The customer must pay the monthly fee according to the bill from HS Orka. The due date is the issue date of the bill, and the final due date is the 23rd of the same month.
Late payment interest is calculated according to Chapter III of Act No. 38/2001 on Interest and Indexation if the bill is not paid by the due date. HS Orka charges a billing fee or notification and payment fee for issuing bills, and the fee varies depending on whether it is a paper bill, credit card payment, or online banking payment. In addition to late payment interest, HS Orka charges all collection costs according to applicable rules. HS Orka is also entitled to stop the delivery of electricity to the customer with the assistance of the distribution system operator if the customer’s account is in arrears. In such cases, the distribution system operator is entitled to charge the customer for disconnection and reconnection fees.
Termination of Contract HS Orka’s electricity sales contracts are indefinite unless otherwise agreed. Both parties may terminate the electricity sales contract with one month’s notice, effective on the 1st of the month following the notice.
Termination and Refusal of Contracts In accordance with the provisions of Regulation No. 1050/2004, Article 11, HS Orka is entitled to terminate the electricity contract with the customer if they do not pay following collection actions. If the customer becomes bankrupt, HS Orka is entitled to terminate the contract without notice. The customer may also terminate their contract with HS Orka if the company significantly breaches its obligations.
HS Orka reserves the right to refuse a new party or a new usage location of an existing customer who has not made a specific agreement with the company for the delivery of electricity due to, among other things, previous arrears, status on the arrears register, bankruptcy ruling, or if their usage pattern makes it difficult for HS Orka to supply the requested amount of energy. If HS Orka refuses electricity transactions with a customer, they may refer the matter to the National Energy Authority.
Liability Rules HS Orka is not liable for damage caused by force majeure events, such as energy shortages, wars, and natural disasters, and the customer’s and HS Orka’s right to compensation is limited to direct damage. HS Orka is not responsible for the obligations of the energy transmission company and the distribution system operator according to the Electricity Act No. 65/2003. The connection agreement with the distribution system operator is not part of the contract between the customer and HS Orka, and the distribution system operator is responsible for the installation, operation, and maintenance of metering equipment, as well as the collection, correction, verification, and distribution of metering data. If there are difficulties in obtaining energy, HS Orka is entitled to reduce the delivery of electricity, and such reductions will be notified as soon as possible if they occur.
Disputes In the event of a dispute between HS Orka and the customer, both parties shall seek to resolve it amicably. If an amicable resolution cannot be reached, disputes shall be brought before the District Court of Reykjavik.
Changes to Terms and Conditions HS Orka reserves the unilateral right to change the terms and conditions. Changes take effect upon publication on HS Orka’s website.
Privacy To fulfill the obligations of the electricity sales contract according to the terms and the law, HS Orka needs to process personal data about the customer. The processing of personal data is governed by HS Orka’s privacy policy, which is available on the company’s website.
Effective Date These terms and conditions take effect from January 1, 2022.