Statement on the implementation of the Federal Act on a Secure Electricity Supply from Renewable Energy Sources at ordinance level and further amendments to the relevant ordinances
On 29 September 2023, the Swiss Parliament amended legislation including the Energy Act and the Electricity Supply Act in particular as part of the «Federal Act on a Secure Electricity Supply from Renewable Energy Sources» (known as the «Consolidation Legislation» or the «Electricity Act»). The Federal Council initiated the consultation on the implementing ordinances on 21 February 2024. A total of six ordinances will be revised, including the Electricity Supply Ordinance (ESO), the Winter Reserve Ordinance (WResO) and the Ordinance on the Organisation to ensure National Economic Supply in the Electricity Sector (ESOO).
From Swissgrid’s point of view, the bill represents an important basis for achieving the federal government’s climate and energy targets. The main principles of the Electricity Supply Act passed by the federal government in 2007 have proved their worth. However, it now needs to evolve due to developments in recent years, including the expansion of renewable energies and the resulting increase in fluctuations in the electricity fed into the grid, as well as the advance of digitalisation and the associated opportunities. The bill takes this into account, for example in the new provisions on data interchange, the creation of a central data platform (data hub) and the use of flexibilities.
Important parts of the draft ordinances still need to be revised. In its statement, Swissgrid emphasises the following points in particular:
- The ESO contains a clarifying provision (Art. 13a) on the new provision in the Electricity Supply Act concerning the measures to be taken in the event of a threat to secure transmission system operation. However, this clarification will not be sufficient to resolve the major uncertainties that are likely to arise from the new legal provision with regard to cost allocation. Swissgrid is therefore requesting further clarifications. If Swissgrid were to bear unlimited costs, this could create false incentives that would be contrary to the purpose of the provision – ensuring secure grid operation. All the parties involved (distribution system operators, generators of electricity, storage system operators, etc.) are responsible for ensuring the smooth running of the overall system.
- A further provision in the ESO tasks Swissgrid with operational processing in connection with the lump-sum compensation of the costs for the enhancement of the grid and of connection lines in the distribution system. In its statement, Swissgrid points out that, from a regulatory and organisational perspective, Pronovo would be better suited to perform part of this task. Pronovo has experience with comparable processes as well as some of the necessary data and data systems. This would avoid duplications.
- According to the revised ESOO, the costs incurred by electricity industry players as a result of measures under the National Economic Supply Act are to be passed on via the transmission system tariffs in the future. In its statement, Swissgrid notes that the legislator has not yet stipulated how these costs are to be reported to end consumers, and asks for this to be done as part of the «power reserve» tariff.
Swissgrid also indicates that, notwithstanding the bill, further measures are required to guarantee Switzerland’s security of supply in the long term. The necessary steps include accelerating the approval process, concluding an electricity agreement with the EU, and clarifying the responsibilities of the balance groups.
