Swiss government announces new electricity rate hike of 18 percent
The bad news is that, as expected, electricity tariffs in Switzerland will go up next year. The (relatively) good news is that they will increase less than they did in 2023.
In 2024, electricity prices will increase by an average of around 18 percent for households, the Federal Electricity Commission (ElCom) announced on Tuesday.
As a general indication, this means a typical household that consumes 4,500 kilowatt hours (kWh) per year will pay 32.14 centimes per kWh on average, which would add up to 222 francs more over 12 months.
However, prices could be higher or lower than the national average in individual cantons and municipalities (read more about this below).
That’s because tariffs “sometimes vary considerably between network operators within Switzerland. This is mainly due to large differences in energy supply,” ElCom said in a press release.
Why are energy prices rising next year?
Several factors are at play, according to ElCom.
“Firstly, for many network operators, the increase in market prices from 2024 is reflected more strongly than in the previous year, because a significant part of the purchases for 2023 were made before the rise in prices on the futures market,” the commission said.
Secondly, consumers shoulder the costs associated with the energy reserve stocked for the winter by paying a surcharge on the tariff for the use of the transmission grid.
What increases can you expect in your area?
The 18-percent hike is a national average.
On local levels, tariffs will be higher in some cantons and communities.
Price disparities among some Swiss electricity suppliers are significant, so the amount of the increase will depend not only on your place of residence and the size of your dwelling, but also on the production capacity of the local electricity provider.
Zurich residents, for instance, can expect a 24.5-percent increase, in Geneva rates will go by 28.6 percent, and in Vaud, which has many electricity suppliers, hikes will range from 32 to over 40 percent.
This ElCom map shows by how much electricity prices will go up in your community.
How do these hikes compare to this year's?
Due to lower global energy supply after Russia attacked Ukraine in February 2022, prices climbed substantially.
Nationally, they went up by 20 percent.
However, rates in many regions exceeded that national average by much.
One provider in western Switzerland, Romandie Energie, called the increases “historical”, with tariffs for parts of Vaud rising "by between 49 percent for the vast majority of our household customers, and 61 percent for customers with specific modes of consumption” — meaning those who use a lot of energy.
Sharp increases — between 42 and 46 percent —also hit Basel residents, as well as those living in Zug (39 percent).
Comments (1)
See Also
In 2024, electricity prices will increase by an average of around 18 percent for households, the Federal Electricity Commission (ElCom) announced on Tuesday.
As a general indication, this means a typical household that consumes 4,500 kilowatt hours (kWh) per year will pay 32.14 centimes per kWh on average, which would add up to 222 francs more over 12 months.
However, prices could be higher or lower than the national average in individual cantons and municipalities (read more about this below).
That’s because tariffs “sometimes vary considerably between network operators within Switzerland. This is mainly due to large differences in energy supply,” ElCom said in a press release.
Why are energy prices rising next year?
Several factors are at play, according to ElCom.
“Firstly, for many network operators, the increase in market prices from 2024 is reflected more strongly than in the previous year, because a significant part of the purchases for 2023 were made before the rise in prices on the futures market,” the commission said.
Secondly, consumers shoulder the costs associated with the energy reserve stocked for the winter by paying a surcharge on the tariff for the use of the transmission grid.
What increases can you expect in your area?
The 18-percent hike is a national average.
On local levels, tariffs will be higher in some cantons and communities.
Price disparities among some Swiss electricity suppliers are significant, so the amount of the increase will depend not only on your place of residence and the size of your dwelling, but also on the production capacity of the local electricity provider.
Zurich residents, for instance, can expect a 24.5-percent increase, in Geneva rates will go by 28.6 percent, and in Vaud, which has many electricity suppliers, hikes will range from 32 to over 40 percent.
This ElCom map shows by how much electricity prices will go up in your community.
How do these hikes compare to this year's?
Due to lower global energy supply after Russia attacked Ukraine in February 2022, prices climbed substantially.
Nationally, they went up by 20 percent.
However, rates in many regions exceeded that national average by much.
One provider in western Switzerland, Romandie Energie, called the increases “historical”, with tariffs for parts of Vaud rising "by between 49 percent for the vast majority of our household customers, and 61 percent for customers with specific modes of consumption” — meaning those who use a lot of energy.
Sharp increases — between 42 and 46 percent —also hit Basel residents, as well as those living in Zug (39 percent).
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.