Additional cost financing (ACF)

Article 7 of the Energy Act (EnG) commits energy supply companies (ESPs) to purchase electricity generated by independent producers. As a result, the ESPs are charged additional costs which result from the difference between the average guaranteed purchase price of 15 cents per kilowatt hour and the market-oriented purchase price.

The Energy Ordinance has been revised and now includes a new mechanism created to finance these additional costs. ESPs and end consumers in regions with disproportionately high prices for electricity supplied by independent producers (mainly from small hydropower plants) will no longer have to pay for this and the additional costs will be evenly distributed among all end consumers.

Additional cost financing has been in force since 1 January 2005 and replaces the equalisation fund previously provided by the cantons.

This change to the Energy Act and the implementation of the revised Energy Ordinance have again resulted in modifications to the additional cost financing process . The key change is the obligation to create and issue certificates of origin. This website provides you with an overview of the process before and after the revision to the Energy Act and a summary of the key issues.