fastgjöld

Fastgjöld are fixed charges that must be paid regardless of activity or consumption. In Icelandic usage, the term is commonly applied to price structures in utilities, telecommunications, and service contracts, where providers levy a set amount per billing period in addition to any usage-based charges. The purpose of a fastgjald is to cover baseline costs related to maintaining networks, customer administration, meter reading, and capital investments. Because fastgjöld are not tied to usage, they are considered fixed costs in cost accounting and budgeting.

In electricity supply, a fastgjald is a standing charge billed per month or per day, separate from the cost of consumed kilowatt-hours. In telecommunications, it may appear as a monthly base fee for access to service, while some rental or subscription agreements include a fixed service charge as part of the total price.

From a budgeting perspective, fastgjöld reduce the marginal effect of reducing consumption; they influence consumer behavior by creating a fixed cost component. For providers, fixed charges provide revenue stability and help cover network or service maintenance costs; they can be controversial when set high relative to usage or when they apply to low-usage customers.

In financial reporting and cost accounting, fastgjöld are categorized as fixed costs or overhead. They are typically allocated across products or customers based on a chosen cost allocation method and can be part of tariff design and price regulation discussions.