Those faring best are residents of Ólafsfjörður, who pay just 67 ISK per cubic meter of hot water. On the other end of the spectrum are those in Fjarðabyggð, who are being charged 164 ISK per cubic meter of hot water.
In the capital area Reykjavík residents are being charged 125 ISK per cubic meter in January 2013. This is in comparison to 120 ISK paid in January 2012 and 105 ISK paid per cubic meter in October 2010. Strangely, residents of neighbouring municipality Seltjarnarnes are paying just 74 ISK per cubic meter of hot water this month. This translates to it costing the average resident of Reykjavík 60.000 ISK annually to heat their home, while the average home in Seltjarnarnes costs just 33.600 ISK to heat annually.
The reason behind this hot water price increase is largely due to increased costs and associated fees levied by the energy providers in the wake of the economic crisis. In Fjarðabyggð, for example, the energy provider Hitaveita Fjarðabyggðar had taken out large loans between 2001 and 2007 to finance its development, a portion of which were in a foreign currency, causing the loan value to double or triple following the collapse of the króna.
Orkuvaktin notes that another reason for the price increase is increased consumption. The average home is consuming 20-60% more hot water than had previously been consumed, so taking simple measures in the home to reduce personal hot water consumption should result in lower bills.
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