2023-09-08 15:24:01
Electricity is becoming more expensive, which increases security of supply. View of Zurich towards Limmattal.
Photo: Urs Jaudas
“Electricity shock”, “price hammer”: There is a great outcry regarding electricity prices, which will rise in the coming year. Braunau, we read this week, is “foaming” because the population of the small Thurgau community will have to pay the most for electricity in the country in the future.
Looking at the extremes may be attractive in the media, but it only provides a distorted image of reality. On average, a kilowatt hour will cost a little more than 32 centimes next year A typical household with five rooms pays 1,446 francs222 more than currently.
Electricity was very cheap for a long time
The surcharge puts pressure on your wallet, of course. Especially since electricity has already become more expensive this year and prices are now also rising in other areas, such as health insurance premiums, rents and train travel. Social policy measures are certainly needed to support people with little income and assets through this difficult time; Stronger premium reductions are conceivable, as Federal Councilor Alain Berset demands.
High electricity prices are increasing the pressure to save electricity and invest in efficiency.
But it is also a fact that electricity has been very cheap for a very long time. It was only two years ago that electricity prices on the wholesale market began to rise sharply, due, among other things, to higher fuel and CO₂ prices. With the war in Ukraine and the drought across Europe, the situation worsened further and finally reached historic highs in August 2022.
Despite high prices, electricity suppliers had to purchase for 2024 and subsequent years. Consumers are now feeling this. For many this is a new experience. Seemingly endlessly available and cheap, electricity has so far been consumed quite carelessly.
The savings potential is huge
Seen this way, the high electricity prices also have their positive side. They are increasing the pressure to save electricity and invest in efficiency – not only for the almost four million households in the country, but also for companies. Replacing old devices costs money. But such investments can pay off fairly quickly, especially when electricity prices are high. If you don’t want to spend extra money, you can adjust your habits a little and save electricity, for example, only taking short showers and not taking hot showers.
The potential is huge. Up to 40 percent of consumption can be saved without painful cuts, such as one A federal study showed last year. Of course, miracles are not to be expected. Even under the impression of a possible shortage, the population and the economy only saved just under half of the 10 percent hoped for last winter.
Saving electricity is also climate protection.
One thing is clear: saving electricity also means conserving electricity reserves and thus strengthening security of supply and reducing dependence on foreign countries. The energy crisis has dramatically shown how vulnerable Switzerland is, especially in winter when it is dependent on imported electricity. With a view to the coming winter, the risk of a shortage has decreased significantly, but it has not been averted.
And the situation remains fragile because the federal government has still not concluded an electricity agreement with the European Union – and it is therefore not clear to what extent Switzerland will remain integrated into the European electricity market in the future. In order to keep the risk as small as possible, the Federal Council has created a so-called winter reserve. This includes three reserve power plants that run on oil or gas and are intended to bridge bottlenecks in an emergency.
Saving electricity is also climate protection. It reduces the risk that these CO₂ generators will ever have to go into operation or that Switzerland will have to resort to dirty imported electricity. Just as an aside, it should be remembered that the current increase in electricity prices is also a consequence of this winter reserve, as the federal government is passing the costs on to consumers. If the reserve were not needed, around a quarter of the price premium would be eliminated.
Consumers are trapped
So that there are no misunderstandings: The savings incentives that arise thanks to higher electricity prices are not a free pass for electricity suppliers to fleece consumers with exorbitant price increases. The federal electricity market supervisors have to take a close look, if any Trickery with adjusted tariffs that are at the expense of consumersare prohibited.
Politicians also have to take a closer look: What consequences would a complete opening of the electricity market have on electricity prices? The parliament in Bern has been putting off the dossier for years – not least because it is controversial what consequences this step would have for the energy transition.
This means that only a few large consumers are still allowed to buy electricity on the open market. Private households, small and medium-sized companies, i.e. 99 percent of end consumers, must purchase electricity from their local electricity company – regardless of how they do business, for example when purchasing electricity on the open market.
There are no options for switching like there are with health insurance companies. Many consumers are now becoming aware of this for the first time. Perhaps this will create the necessary pressure to seriously negotiate a complete opening of the electricity market politically.
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– The high electricity prices also have their advantages
Electricity is becoming more expensive. It increases the pressure to save electricity – this not only takes the strain off your wallet, but also has other advantages.