Electricity Suppliers Announce Pricing for 2024: Significant Increases Expected in Friborg, Geneva, Neuchâtel, Lausanne, and Yverdon-les-Bains

2023-08-31 11:59:45

Electricity suppliers are beginning to announce their pricing for 2024. Significant increases are planned in the cantons of Friborg (+28.9), Geneva (+18%), Neuchâtel (+23.7%), as well as in the Vaud towns of Lausanne (+12%) and Yverdon-les-Bains (+10%).

– GROUP E – 28.9% increase for Group E

The rates charged by Groupe E will increase significantly in Friborg and in a large part of the canton of Neuchâtel, from January 1, 2024. The company located in Granges-Paccot (FR) announces average increases of 28.9%. The price per kWh will average 32.4 cents.

The company had never announced such an increase. “An unfavorable context forced Group E to increase its prices. It is not lightheartedly. We are only passing on the costs,” said general manager Jacques Mauron on Wednesday.

“The monthly increase will be between 9.40 francs for people living alone and 27 francs for a family.” At the end of August 2022, the company announced an average increase of 19% for the current year. “Over two years, Group E’s prices are within the national average”, underlines the general manager.

Many reasons

The price of raw energy will increase by 19.7%, the Group E and Swissgrid networks by 4.3% and taxes by 4.9% with the appearance from 2024 ofa tax for the winter reserve of electricity decided by the Federal Council. The increase thus rises for the consumer by 28.9%, to reach a cost of kWh of 32.4 cents. Until 2021, this amount per kWh was less than 25 cents at Groupe E.

Supply problems are linked to various factors such as the war in Ukraine and its repercussions on our supply, the partial unavailability of French nuclear power plants last year, the 2022 drought in Switzerland, a catch-up phenomenon for the years 2021 to 2023 of the prices practiced at Groupe E or even a lack of winter production at the national level.

>> Read about it: Electricity prices are expected to rise further in Switzerland in 2024

Signature of a long-term contract

According to the management of the firm, it is imperative to invest in renewables, in particular through the creation of hydraulic and photovoltaic power stations and to develop wind power. In this sense, the company will inaugurate, next week, its solar park in Cornaux (NE).

The Friborg company nevertheless announced good news during its press conference. The photovoltaic take-back tariff for self-producers will remain stable in 2024 at 14.45 cents per kWh. Groupe E also indicated that it had signed an investment contract with a French specialist in energy conversion (ENAG) in order to secure a supply of 216 GWh/year from 2025 to 2039.

>> Listen to the interview with Jacques Mauron in La Matinale: The electricity price counter for 2024 is already panicking for some Romands / Interview with Jacques Mauron / La Matinale / 1 min. / today at 06:23

– SERVICES INDUSTRIAL DE GENÈVE – 18% increase

The Geneva State Council validated on Wednesday the proposal of the Geneva Industrial Services (SIG) to increase electricity prices by an average of 18% from January 2024. This increase is mainly due to electricity purchases on the market. European Union, which was strongly impacted by the war in Ukraine.

About 5% of the increase in the electricity tariff next year comes from the electricity reserves decided by the Confederation to secure the supply.

In a press release, the Geneva government recalls that a large part of the electricity which will be supplied next year “has already been negotiated in 2023 or before”. The fact that electricity prices have recently fallen on the European market therefore has no influence on the tariffs that will be applied in 2024.

Historic peak in summer 2022

In 2023, electricity prices have already increased by 22% in the canton of Geneva. Despite these adjustments, electricity prices at the end of the lake “remain among the cheapest in French-speaking Switzerland”, write the SIG in a press release.

For a household living in a three-room apartment, the 18% increase in the price of electricity represents an additional 6 francs per month on the bill and 25 francs monthly for a household living in a villa.

The price of electricity had reached a historic peak in the summer of 2022. Today, prices have calmed down a bit, but they “are still well above the levels that have prevailed for fifteen years , when electricity was cheap”, note the GIS.

– VITEOS – 23.7% increase

Viteos announces an increase of 23.7% for next year. The Neuchâtel supplier will however double the feed-in tariffs for solar energy.

The price increase from 2024 is linked “to an increase in the transmission costs of upstream suppliers Swissgrid and Group E, to the new federal winter reserve tax, as well as to energy purchases made at still expensive prices”, a said Viteos on Thursday.

“Our company having only 13% of own production, mainly solar and hydroelectric, most of the electricity supplied by Viteos must be acquired on the wholesale markets”, specified the supplier. The latter is therefore more strongly exposed to the vagaries of international prices than distribution network operators benefiting from numerous dams or nuclear power plants.

With a view to supporting the energy transition by encouraging the installation of photovoltaic panels in the canton, Viteos has decided to increase the tariffs for the purchase of solar energy. The take-back price will drop from 12.99 cents per kWh to 24.50 cents per kWh from 2024.

In 2022, the increase in supply costs had a significant impact on the company which closed its financial year with a net profit down 31% compared to the previous year. “Despite this, investments for the maintenance and extension of infrastructure, essential for the energy transition, have grown by 10%,” said Viteos.

– LAUSANNE INDUSTRIAL SERVICES – Growth of nearly 12%

The price of electricity will increase by 11.8% from January 1, 2024 in Lausanne, excluding taxes and fees. For an average Lausanne dwelling consuming 2,500 kWh/year, this increase corresponds to 123.95 francs on the annual bill, or around 10 francs per month, indicated the City of Lausanne.

“The new federal tax for the hydraulic reserve, the price of losses on the transmission network and the high cost of energy on the markets will affect the 2024 electricity tariffs of the Services Industriels de Lausanne (SiL) “, writes the City as a warning.

“However, the Municipality has decided to use all of the hydroelectric production of its Lavey development in its basic supply, which makes it possible to limit the increase in the simple tariff”, she explains. For 2024, the price of energy as such increases by 11% on average. This “energy” share goes from 12.52 ct/kWh to 13.90.

Electricity tariffs also include a “delivery” component. Its tariff rises from 1.61 ct/kWh to 14.41, this “mainly due to the overall increase in supply costs which affects the price of losses due to the transmission of electricity”, explain the Lausanne authorities.

A “positive element”

A “positive element” of these high tariff levels is the maintenance of the recovery tariff at 17.8 ct/kWh for photovoltaic solar production installations whose installed power is less than or equal to 30 kW, notes the City.

In addition, the sharp increase in natural gas supply costs in 2022 continues to weigh on gas and district heating tariffs for SiL. They will both increase by 7.8% on average from October 1, 2023, it is still indicated.

They will amount to 13.72 ct/kWh on average, CO2 tax included. For an apartment consuming 8,800 kWh/year, this increase represents approximately 80 francs per year (all taxes included), and for a villa (consuming 20,000 kWh/year), approximately 180 francs per year (also including tax), specifies the City. .

Finally, from January 1, 2024, the share of biogas in the gas distributed by SiLs will increase from 10% to 15%, as provided for in the Climate Plan, we add.

As a reminder, the SiLs supply electricity to the municipalities of Lausanne, but also those of Jouxtens-Mézery, Prilly, Saint-Sulpice, Le Mont-sur-Lausanne, Epalinges and Collonges (VS).

– YVERDON ENERGIES – Average increase of 10%

The Municipality of Yverdon-les-Bains has approved an average increase of 10.6% in electricity prices, excluding VAT. The increase is primarily due to higher shipping costs and a new federal tax. Businesses will be more affected than households.

The City points out that three components enter into the calculation of the price: the energy tariff (electricity itself), the transmission tariff and the royalties, intended mainly for the promotion of renewable energies.

For 2024, the energy tariff will increase by an average of 0.25 cents per kWh, which represents an increase of 1.3% compared to 2023. Transmission costs are strongly affected by the energy crisis, with a increase of 2.11 cents per kWh (+22.8%).

Finally, a new federal tax will affect all consumers up to 1.2 cents per kWh for the years 2024 to 2026. This tax aims to guarantee a reserve of electricity for the winter.

>> Read also: Christian Petit: “We are not responsible for the rise in the price of energy”

Businesses more affected

In total, the Yverdonnois will see their bill increase between 8 and 12% on average. Companies will be more affected than private households by the greater weight of the routing part in their bill, specifies a press release from the city.

Very concretely, for a household consuming 1600 kWh per year (i.e. 65% of households in Yverdon), the increase will represent 4.50 francs per month (excluding VAT). To limit the impact of the increase, the municipality has decided to renew the Eco-challenge program in 2024. All customers – private and business – will benefit from a compensation of 20 cents for each kWh saved compared to 2023.

– DELÉMONT INDUSTRIAL SERVICES – Price increase of 9%

The Services Industriels de Delémont (SID) will increase their prices by an average of 9% in 2024. This increase is mainly due to the increase in the costs of the national transport networks, as well as the new federal tax for the constitution of a winter reserve of electricity.

For the vast majority of SID customers, the increase represents an average amount of around 5 francs per month for a two-person household or 9 francs for a family (excluding VAT), the electricity supplier said on Thursday. In 2024, local solar electricity producers will see the recovery rate set at 17 cents per kilowatt hour.

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