1. 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 transactions and contractual relationships between HS Orka and its corporate customers, with the exception of electricity sales agreements, unless otherwise expressly agreed. These Terms and Conditions are viewed as standard agreements for the trading of electricity between a sales company and a general user pursuant to Paragraph 4, Article 7 of Regulation No. 1050/2004. With the first payment of the electricity bill, the Client confirms their service relationship with HS Orka, as well as the validity of these Terms and Conditions, thereby establishing the applicable electricity sales agreement. These Terms and Conditions apply to all electricity sales agreements, whether concluded in writing, orally, by electronic means or confirmed by the first payment of the electricity bill. Please note that these Terms and Conditions exclusively cover the sale of electricity, but not its transportation and distribution.
HS Orka’s electricity sales are 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 Trading and Measurements No. 1050/2004.
2. Use
With the request to enter into a transaction with HS Orka, the Client entrusts the Company with the acquisition of information about the Client’s electricity consumption from the relevant distribution provider or Netorka. The authorisation includes information on the number of the utilities and meters, the distribution area, the address, the distribution tariff, the estimated annual usage, the average usage, the last reading, the method of measurement, the meter status, the multiplying co-efficient and the character count of the meter. In case of time-measured utilities, usage figures are delivered retroactively for up to 24 months. The distribution company is responsible for measuring the buyer’s energy consumption in its supply area. To estimate the energy consumption data, the Company makes use of the Client’s electricity consumption. In the case of a new customer who has not previously purchased electricity, HS Orka is entitled to estimate their use based on comparable use.
If the Client is in a vendor exchange with HS Orka, the agreement takes effect in accordance with Article 10 of the Electricity Trading Regulations, which states that the general user may terminate the electricity sales contract with the vendor company three weeks in advance of its effective date, which shall take effect by the end of the following month.
3. Prices and Payment Terms
Prices depend on HS Orka’s general price list each time, unless otherwise agreed. The general price list is always updated and presented on the HS Orka website and is also reflected on the Client’s invoice. The energy fee (kr/kWh) is payable per unit of energy measured in direct proportion to energy consumption.
Energy price includes only the price of the electricity sale item. In addition to charging energy prices, HS Orka collects taxes and fees for the consumption of electricity according to current legislation, such as energy tax. In the event that a change in the fees or taxes that affect the amount charged, e.g. if fees for the feed-in of electricity from HS Orka’s generators or from the generators from which HS Orka purchases electricity, is imposed on the Company by a public transport or distribution entity, HS Orka reserves the right to charge those fees to the Company’s clients on monthly invoices in proportion to their usage. Value Added Tax, as determined by the Value Added Tax Act No. 50/1988 each time, is added on top of the electricity fee plus electricity tax pursuant to Article 5 of Act No. 23/2009 in accordance with the law.
The Client shall pay a monthly fee according to the invoice from HS Orka. The due date is the invoice issue date and the final due date is on the 23rd day of the same month.
Penalty interest is calculated on claim, cf. Section VIII of Act No. 38/2001 on Interest and Price Indexation, if the invoice is not paid on the due date. HS Orka charges a note fee or a notification and payment fee for the issuance of invoices, and the fee varies depending on whether it is a paper invoice, a credit card or online banking invoice payment. In addition to the penalty interest, HS Orka charges all collection costs according to the applicable rules. HS Orka is also entitled to suspend the energy supply to the Client with the help of a distributor, in the event of default of a debt. In such cases, the distributor is entitled to charge closing and opening fees to the Client.
4. Termination of Agreement
HS Orka’s electricity sales agreements are indefinite, unless otherwise agreed. Both Parties may terminate the Electricity Sales Agreement with one month’s notice, and the termination shall take effect on the 1st of each month from the date of notification thereof.
5. Termination and Rejection of Agreements
In accordance with the provisions of Regulation No. 1050/2004, cf. Article 11, HS Orka is entitled to terminate the Electricity Agreement with the Client if they fail to pay as a result of collection operations. If the Client is declared bankrupt, HS Orka is entitled without notice to terminate the Agreement between the Parties. The Client may also cancel their Agreement with HS Orka if the Company significantly defaults on its obligations.
HS Orka reserves the right to reject a new party, or a new place of use of an existing customer, who has not entered into a separate agreement with the Company for the supply of electricity due to, i.a. a prior default, status on the default register, a bankruptcy decision or whose usage history is such that HS Orka finds it difficult to supply the requested amount of energy to them. If HS Orka rejects an electricity transaction with the Client, they can pass it on to Orkustofnun (National Energy Authority).
6. Warranty Rules
HS Orka shall not be liable for damages attributable to uncontrollable events, such as energy shortages, wars and natural disasters, and the Client’s and HS Orka’s indemnification rights shall be limited to direct damages. HS Orka is not liable for the obligations of the energy transport company and distributer, according to the Electricity Act No. 65/2003. The connector agreement with the distributor is not part of the Agreement between the Client and HS Orka. and the distributor is responsible, i.a. for the installation, operation and maintenance of the measuring equipment as well as for the collection, correction, verification and distribution of the measuring data. If difficulties arise with power generation, HS Orka is entitled to curtail the supply of electricity, but notification of such curtailment should be communicated as soon as possible in that event.
7. Disputes
In the event of a dispute between HS Orka and the Client, both Parties shall endeavour to resolve it amicably and in harmony. In the event that the dispute cannot be resolved, the dispute may be brought before the District Court of Reykjavík.
8. Amendments To the Terms and Conditions
HS Orka unilaterally reserves the right to amend the Terms and Conditions. Amendments will take effect from the date of their publication on the HS Orka website.
9. Personal Data Protection
In order to comply with the obligations of the Electricity Sales Agreement in accordance with the Terms and the law, HS Orka must process the Client’s personal data. The processing of personal data is governed by the HS Orka Privacy Policy available on the Company’s website.
10. Entry into Effect
These Terms and Conditions are effective as of 1 January 2022.