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 1st
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
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.