Upheaval on the Swiss car market in May

Electricity prices will rise sharply for many providers next year, ElCom announced on Thursday. There are also uncertainties about the security of supply in the coming winter. Missing quantities are not excluded

This information comes from a survey by the Federal Electricity Commission (ElCom) among 613 energy supply companies, of which 172 responded, said the latter at a media conference in Bern.

It shows that the majority of the responding network operators will demand higher energy tariffs of around 47% on average for the coming year. This increase will affect large consumers as well as households.

180 francs more per year for a household

For a 5-room household with an average annual consumption of 4500 kilowatt hours, the electricity price would fall from around 21 centimes per kilowatt hour in 2022 to almost 25 centimes in 2023, i.e. an additional financial burden of around 180 francs per year.

Companies with an annual consumption of 150,000 kWh must expect a surcharge of around 6,000 francs (excl. VAT). In some cases, however, the differences can be greater. The final electricity prices for end customers will be recorded by the providers by the end of August and communicated by ElCom at the beginning of September.

It should be noted that utility companies have the option of taking voluntary measures to cushion price increases, such as charging Swiss-produced energy from renewable energies at cost price instead of at market price.

Imports from neighboring countries

In addition to the availability of national nuclear energy production, the export capacity of neighboring countries will be decisive for security of supply for the coming winter. Due to the expected low availability of French nuclear power plants, imports from France are likely to be very limited.

Switzerland’s structural import requirement of around 4 terawatt hours during the winter semester should therefore primarily be covered with electricity from Germany, Austria and Italy. However, the export capacity of these countries is highly dependent on the availability of fossil fuels.

Conversely, the good availability of Swiss nuclear power plants and the reduced consumption in industry with persistently high prices speak for the security of supply.

Preparations for next winter are also underway. In addition to the advance purchase of control energy, Switzerland wants to have a strategic hydraulic reserve for the first time. Uncertainties about the supply situation are therefore likely to persist until winter.

Russian invasion of Ukraine

Wholesale electricity prices have risen unprecedentedly since August 2021. Gas prices, which rose dramatically after Russia invaded Ukraine, are the main reason for the currently very high electricity prices, which are common in Europe and thus also in Switzerland.

According to ElCom, a possible tariff increase not only depends on the price development on the market, but also on the supply strategies and production portfolios of the utility companies.

In general, the greater a utility’s share of self-generation and long-term market share of purchased energy, the smaller the increase in energy tariffs should be.

This article was published automatically. Source: ats

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