So far, Switzerland has been able to largely avoid power supply bottlenecks. Turning off the lights would be expensive. Drone shot of Zurich at night.
Photo: Urs Jaudas
The cantons of Zurich, Aargau, Schaffhausen, Glarus and Zug could just as well buy Apple shares or even cryptocurrencies instead of their stake in Axpo. At least that’s how it sometimes appears to outsiders. Because apart from the dividends that Axpo yields, the responsible government councilors hardly seem to be interested in the business of the energy company.
They have long since abandoned the original idea of securing the supply with a stake in the energy company and with power purchase agreements. The electricity market was liberalized and managers took seats on the board of directors instead of representatives from the cantons. The energy trade deals are complex and the responsible politicians obviously have no desire to get involved.
As a result, in recent years Axpo has no longer behaved like a company that belongs to the general public, but more like an international listed group: Instead of supply security, the group management pushed the lucrative international trading business.
It is up to the owners to use the strategy to set guidelines to ensure the electricity supply.
But now the cantons are being caught up in the past. The energy crisis in the wake of the Ukraine war may only be a foretaste of what is to come for years to come. This is because fossil fuels are increasingly being replaced by electricity, for example in road traffic. Without expanding electricity production, there is a risk of major supply bottlenecks.
Expanding security of supply costs money and is difficult to implement. But a blackout would be significantly more expensive. According to a scenario by the Federal Office for Civil Protection, a power failure lasting four days would result in billions in the Mittelland area alone.
It is up to the owners to use the strategy to set guidelines and thus ensure the electricity supply. If they don’t, they will be responsible if the worst-case scenario occurs.
Found a mistake?Report now.
– The Axpo owners are shirking their responsibility
Several cantons give the impression that their interest in the energy company is only a financial investment. In fact, there is a lot at stake for them.