Swiss Electricity Sector’s Demands for EU Agreement and Market Opening: AES Position

2024-02-12 14:36:30

12.02.2024 – 15:36

VSE/AES

Aarau (ots)

The electricity sector expects an agreement on electricity to provide greater security of supply, legal certainty and Swiss participation in the development of legislation. The AES formulates requests which also concern implementation within the country, such as the opening of the Swiss electricity market. Consumers must get freedom of choice, and basic providers more predictability.

The Federal Council is expected to adopt the final mandate very soon to negotiate an electricity agreement with the EU. The AES supports this approach. In order to achieve energy and climate objectives and guarantee security of supply, a close relationship with the EU on energy policy constitutes, together with the development of indigenous renewable production, a central piece of the puzzle.

Security of supply, market access, legal certainty and participation in the development of legislation

An agreement on electricity must absolutely contribute to strengthening security of supply in Switzerland, in particular by (re)integrating our country into the various European platforms and processes. Import capacity would be improved, the stability of the system and network would be strengthened, and, as a result, unnecessary and costly risks linked to supply would decrease. Closer collaboration would also be possible to manage crises, which might make it possible to resize the expensive indigenous winter reserve, thereby lowering costs. Switzerland’s access to the market with the same rights must help ensure that the efficiency gains, which currently only accrue to the EU through market integration, bring regarding a reduction in costs and risks in Switzerland too.

Furthermore, an electricity agreement must create legal certainty for the future and, in particular, offer protection once morest arbitrary decisions, which has not been the case so far. Finally, the AES hopes that Switzerland will obtain the possibility of participating in the development of legislation, namely that Swiss actors can sit within the various important bodies of the common internal market (ENTSO-E, ACER and DSO Entity) . Swiss players must not be disadvantaged compared to their neighbors any longer.

Opening of the electricity market: freedom of choice for consumers

In particular, the EU sets the opening of the electricity market as a condition for the conclusion of an electricity agreement. The opening of the electricity market would concern the entire electricity sector, which is why the latter must imperatively be involved in discussions on implementation at the level of domestic policy. The discussion on this subject is already in full swing, and a first exchange, in which the AES took part, took place today during a round table convened by Federal Councilor Albert Rösti. The AES recognizes the political desire to have a basic supply; it is convinced that an opening of the electricity market applicable and acceptable to all parties is possible, and it has already outlined different implementation models for national regulation.

It will be decisive that clear rules of the game are established, that they guarantee basic supply customers (households, SMEs, any customer whose annual consumption does not exceed 100 MWh) freedom of choice – and that they therefore open up possibilities to remain with basic supply, to change basic supplier or to move to the free market -, and at the same time, they give to basic suppliers, that is to say to electricity suppliers, sufficient predictability in particular for the acquisition of electricity. Finally, regulations must allow electricity prices to be as stable as possible and must protect once morest abusive formation of electricity prices.

Laying the foundations for hydrogen collaboration

Furthermore, the AES would welcome the fact that, in the context of the negotiations, a declaration of intent is made to initiate discussions on the topic of hydrogen once the electricity agreement is concluded. Hydrogen can make an important contribution to a CO2-neutral energy supply and thus to achieving Switzerland’s net zero emissions target. The AES assumes that hydrogen production in the country will not be able to cover demand. It is for this reason that the cheapest and freest possible access to the European hydrogen backbone (hydrogen economy and infrastructure), which is currently being created, must be guaranteed.

Contact:

Valérie Bourdin, Spokesperson for French-speaking Switzerland
valerie.bourdin@electricite.ch / 021 310 30 23

1707749164
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