Switzerland faces 20 percent increase in electricity costs
The combined impacts of inflation, the war in Ukraine and the lingering influence of the Covid pandemic have combined to put upwards pressure on electricity costs in Switzerland.
From 2023, customers can be expected to pay an additional 20 percent on their average electricity costs across Switzerland.
This figure is determined on the basis of estimates from the Federal Electricity Commission (Elcom), which looked at the expected price development at 172 energy companies.
According to Swiss tabloid Blick, this corresponds to an 180-franc increase for the average Swiss home.
On the whole, energy tariffs are set to see an increase by 47 percent, although as tariffs only make up around 40 percent of electricity costs, the subsequent increase will be approximately 20 percent.
EXPLAINED: Why Switzerland’s cost of living isn’t as high as you think
According to Credit Suisse, the impact could be much higher in certain apartments where the energy is more reliant on fossil fuel sources. There, prices could rise by up to 500 francs per annum.
Power shortage
Elcom is concerned Switzerland could see a power shortage in the coming winter.
Switzerland is heavily reliant on power from its neighbours, particularly France, but can expect far less energy from French nuclear reactors in the future.
Switzerland will therefore need to turn to Germany, Italy and Austria for energy, however these markets are also subject too cost increases and demand pressures, much of which comes from the war in Ukraine.
A greater percentage of energy in these markets comes from fossil fuels, which also means that Switzerland will have a higher carbon footprint.
In order to beat shortages, Switzerland wants to produce a greater degree of hydroelectric and nuclear power.
The Social Democrats have also put out a proposal to ask citizens to limit heating in their homes to 20 percent.
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From 2023, customers can be expected to pay an additional 20 percent on their average electricity costs across Switzerland.
This figure is determined on the basis of estimates from the Federal Electricity Commission (Elcom), which looked at the expected price development at 172 energy companies.
According to Swiss tabloid Blick, this corresponds to an 180-franc increase for the average Swiss home.
On the whole, energy tariffs are set to see an increase by 47 percent, although as tariffs only make up around 40 percent of electricity costs, the subsequent increase will be approximately 20 percent.
EXPLAINED: Why Switzerland’s cost of living isn’t as high as you think
According to Credit Suisse, the impact could be much higher in certain apartments where the energy is more reliant on fossil fuel sources. There, prices could rise by up to 500 francs per annum.
Power shortage
Elcom is concerned Switzerland could see a power shortage in the coming winter.
Switzerland is heavily reliant on power from its neighbours, particularly France, but can expect far less energy from French nuclear reactors in the future.
Switzerland will therefore need to turn to Germany, Italy and Austria for energy, however these markets are also subject too cost increases and demand pressures, much of which comes from the war in Ukraine.
A greater percentage of energy in these markets comes from fossil fuels, which also means that Switzerland will have a higher carbon footprint.
In order to beat shortages, Switzerland wants to produce a greater degree of hydroelectric and nuclear power.
The Social Democrats have also put out a proposal to ask citizens to limit heating in their homes to 20 percent.
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