Rarik’s role is to produce, transport, and distribute electricity for the improvement of the quality of life and the economy of the country.  The company started its operations on January 1^st 1947.  It is owned by the state, and is the responsibility of The Ministry of Energy, but operates independently.  It produces its own electricity and also purchases extra power from wholesalers, distributes it along with thermal energy in its areas, where it is sold to retail customers.

In the early years of the 21st century, EU-rules and regulations were met by separating the company's activities.  The production was departmentalised as was the transport and distribution.  This was required of all other companies in the same position.  Many Icelanders were and are afraid of increase in price as a result of these obligations and their implementation.