District Heating Prices Surge, Driving Sharp Rise in Iceland’s Home Heating Costs

District Heating Prices Surge, Driving Sharp Rise in Iceland’s Home Heating Costs

ICELAND: Latest inflation data from Statistics Iceland show a sharp increase in home heating costs, driven mainly by a 9.2% rise in district heating prices. According to Landsbankinn, this marks the largest increase in 15 years, last seen in 2010. The rise follows the introduction of new tariffs in December, meaning much of the expected January impact has already been reflected in inflation figures. Utilities have raised charges to fund major infrastructure investments, with Veitur increasing usage fees by 7% and adjusting fixed charges. The company plans to invest around ISK 55–60 billion (USD 0.4-0.5 billion) by 2030 to expand capacity, maintain infrastructure and ensure secure hot water supply amid growing housing demand.

Source: Iceland Monitor