Veitur Utilities has fifteen water sources, and its water utilities’ distribution systems serve the capital area and the Western and Southern parts of Iceland. ON Power has two water reserves. The water utilities' distribution system serves 45% of the population in Iceland. Strategic water preservation, other preventive measures, and controls have been implemented in order to guarantee water quality. Constant improvements are needed due to the procedure for connecting pipes and flushing in Veitur Utility's distribution systems, see appendixes.

To ensure water quality, water purifying equipment, using ultraviolet (UV) light, have been installed since 2019 at Veitur Utility’s water sources, both in the Reykjavik Capital area and in the countryside, and that work is still ongoing. By doing so, microorganisms that can enter the water supply are rendered inactive before the water is distributed to customers.

The water quality in the water supplies of Veitur Utilities and ON Power in 2023 was generally good and in most cases conformed to quality standards, provisions of laws and regulations, and the goals of Veitur Utilities. Some deviations occurred, which were addressed, and are described below.

Water Quality in Reykjavík

Minor non conformity occurred at Gaja, Sorpa's gas and composting station in Álfsnes in the autumn of 2023.

Water Quality in West Iceland

A minor non conformity occurred in the water supply of Veitur Utilities in Hafnarfjall Mountain in the spring 2023, but samples met the quality requirements upon repeated sampling. The deviation was likely related to the sampling process itself, and conditions at the sampling site were subsequently improved in cooperation with the Health Authorities.

Following a major earthquake in Reykjanes Peninsula in the summer of 2023, a significant increase in turbidity was observed in Veitur Utilities water reservoir in Grábrókarhraun Lavafield. The water was disinfected by UV light, but due to uncertainty , precautionary recommendations were issued to vulnerable users to boil drinking water. Repeated sampling showed good results.

In Akranes Township, residents noticed a bad-taste in the cold water in August 2023, which was traced back to green algae at the water source in Berjadalsá River. High solar radiation, calm conditions, and low water flow in the preceding weeks likely contributed to increased algae growth. Extensive sampling was conducted, and analyses confirmed that the types of algae found were harmless to people and animals. The water source was successfully cleaned.

In Borgarbyggð Municipality, preparations began for the utilization of water extraction wells at Seley, near the Borgarfjörður bridge, which were drilled in 2022. Construction of a new pumping station at Hvanneyri started in 2023 and is still ongoing. A water purifying equipment, using ultraviolet (UV) light will be installed in the pumping station.

Water level, watershed, environment, climate, and volcanic eruptions

A dense network of water level meters exists in and around Veitur Utility’s water resource near the Reykjavík Capital area. Preparations for research drilling in the Bláfjöll mountains are ongoing by the Association of Local Authorities in the Capital Area. The aim is to better determine the watershed in the area and thus the catchment area of ​​the capital area's water sources.

Projects are still being worked on to better understand the connection between environmental factors, microbial pollution, and climate change. Research was undertaken to assess the impact of the eruptions in Reykjanes Peninsula on quality of drinking water. No noticeable changes on water quality were observed, see appendix.

Water conservation

Water conservation areas are delimited around the water sources of Veitur Utilities and ON Power. Water conservation areas in Heiðmörk are monitored with regard to, among other things, the transport of oil, petrol and other hazardous chemicals. Accidents and incidents, caused by dangerous behavior within the protected water areas, are registered, addressed, and appropriate action taken. Veitur Utilitites' and ON Power's employees and contractors, that work at the protected water sources, are required to take environmental courses before projects commence, to prevent contamination accidents. This requirement is stipulated in tender documents.

In order to reduce the risk of accidents from oil- or hazardous chemicals accidents in protected water zones within the area, Veitur utilities has consulted with the Icelandic Road and Coastal Administration (IRCA), the Association of Local Authorities in the Capital Area, and local health inspectorates. These include improvements to the Suðurlandsvegur road, development in the Hólmsheiði Area, closures and improvements to roads within the water protection area, as well as conducting further groundwater research in the area.

Mistakes were made during a joint project by Reykjavik Energy and Reykjavík City when a connection was made to the so-called Ullarhringur, which is a cross-country skiing trail in Heiðmörk. The aim of the project was to improve the skiing trail in the area. However, it was discovered that the connection lies within the catchment area of a water source at Myllulækur, but only a portion of the catchment area is fenced. The connection has been closed, a root cause analysis has been conducted with all parties involved, and tasks from that work have been initiated.

Delays have occurred in the demolition of summer houses within the Elliðavatn Area in Heiðmörk, which is part of the company's water protection measures. The Cultural Heritage Agency has requested a historical assessment of the area in order to preserve its cultural and historical value as one of the oldest summer house communities in Iceland.