published29. June 2022, 21:11
Germany and the Netherlands are struggling with massive increases in electricity prices. In Switzerland, the Ukraine war has not yet had any major impact on electricity prices. But in 2023 it will probably be more expensive.
This is shown by an analysis by the German research institute ZEW for several countries.
Family Business Foundation
In Switzerland, electricity is therefore still significantly cheaper than in Germany or the Netherlands.
Family Business Foundation
The Ukraine war leads to massive uncertainty in the energy supply, resulting in high price increases. Countries in Europe are particularly affected because they are more dependent than the rest of the world on energy imports from Russia and from Russia’s sphere of influence.
But Switzerland is hit much less hard than countries like Germany or the Netherlands. In the first three months of the year – i.e. at the beginning of the war – electricity prices there rose by almost 70 or 200 percent year-on-year. In Switzerland it was about ten percent.
Switzerland, France and Hungary without price explosion
This makes Switzerland, along with France and Hungary, one of the countries with the lowest price increases, as shown by an analysis published on Tuesday by the German research institute ZEW for the Foundation for Family Businesses. The authors attribute this primarily to exchange rate effects. Switzerland already has comparatively low electricity prices (see box).
Larger countries would have a problem with their energy hunger. If the energy crisis escalated, they would have procurement problems. The authors of the study therefore see the greatest import risk with a threat to competitiveness for Germany and Italy. However, the two countries are reducing energy dependency on Russia.
They don’t see any energy risk for Switzerland if there are sanctions or delivery stops. In addition to Russia, Switzerland also obtains oil and gas from countries without a risk of default. In addition, Switzerland has one of the lowest proportions of gas and oil in power generation. The main share is hydro and nuclear power.
Price increase comes with a delay
Real estate economist Fabian Waltert from Credit Suisse also confirmed to 20 minutes: “So far, the Ukraine war has not had any major impact on the price of electricity for private households in Switzerland, unlike the price of oil and gas.”
According to the expert, the rise is yet to come. «Wholesale prices have already risen and we are not completely independent of the world market. Households will therefore have to adjust to higher electricity prices with a regulatory delay,” says Waltert.
In 2023, electricity will probably be 20 percent more expensive
Comparis financial expert Michael Kuhn also expects electricity prices to rise. Depending on the location, price increases of 20 percent or more are possible in 2023. “With an average power consumption of 5,000 kilowatt hours, a household would suddenly have to pay 1,200 francs instead of 1,000,” says Kuhn.
According to Kuhn, whether the price increase will be more or less than 20 percent depends on how much electricity the respective energy provider produces itself or whether it has long-term contracts. “If he has to buy electricity for a lot of money on the spot markets, it gets more expensive,” says Kuhn. If the energy crisis with Russia actually escalates, prices could still become significantly higher.
However, the increase in heating with oil and gas will be significantly higher than with electricity, according to the tenants’ association. In the worst case, the costs could be up to twice as high. According to the association, there could then be a significant additional payment.