Electricity Supply Act: Security for the future

Switzerland wants to open up its electricity market. Parliament approved the new Electricity Supply Act in 2007. Its aims are security of supply, liberalisation of the market and funding for green electricity.

Opening up the electricity market

The new Electricity Supply Act (StromVG) came into force in 2008. It establishes the foundations for the liberalisation of the Swiss electricity market. It will guarantee a secure supply of electricity for Switzerland. Swiss companies and private households will benefit from increased competition and transparency in the electricity market. As the national grid company, Swissgrid was entrusted with the operation of the Swiss high-voltage grid.

Key points of the Electricity Supply Act

Increased security of supply: The main focus is on providing Switzerland with a secure supply of electricity.

Competitive orientation and market liberalisation: In the first phase, the electricity market for large companies with an annual consumption of more than 100,000 kWh will be liberalised. After five years, all Swiss end customers will be able to choose their supplier, unless a referendum is called.

Funding for green electricity and energy efficiency: Funding will be provided for electricity generated using renewable sources like water, sun, wind, biogas, biomass and geothermal energy. There will also be support for improving energy efficiency. 350 million francs a year will be invested. Electricity consumers will pay a supplement of no more than 0.6 Rappen per kWh.

Transfer of the high-voltage grid to Swissgrid: The 220/380 kV transmission system will be transferred to the national grid company in 2013. Swissgrid will become the owner and operator of the 6700 kilometre long high-voltage grid.