Swiss Household Electricity Tariff Increase: A Comprehensive Guide for 2024

2023-09-05 18:10:37

Electricity tariffs for basic supply will increase by an average of 18% next year for Swiss households. Over the year, the bill will thus increase by 222 francs compared to 2023 for an “average” household consuming 4,500 kWh.

A typical household will pay 32.14 cents per kilowatt hour (ct./kWh) next year, an increase of 4.94 cents compared to 2023, the Federal Electricity Commission (ElCom) announced on Tuesday. end of the August 31 deadline set for some 600 distribution network operators to communicate their tariffs. Its annual bill will therefore amount to some 1,446 francs.

>> Read also: Municipality by municipality, the map of electricity price increases in 2024

The prices are made up of tariffs for using the network, energy tariffs, fees due to public authorities and the surcharge collected on the network. Grid costs increase by 19% to 10.62 ct./kWh, as they now include winter reserve costs.

Energy prices rose to 15.63 ct./kWh (+19.5%), and royalties rose slightly to 1 ct./kWh (1+%). The network supplement remains at 2.3 ct./kWh.

If the costs and increases are in accordance with the law, Elcom cannot intervene to lower the rates

Laurianne Altwegg, vice-president of the Federal Electricity Commission (Elcom)

SMEs will also see their bills inflate, with network costs and energy prices also increasing for them. However, prices sometimes vary considerably between grid operators within Switzerland, mainly due to large differences in energy supply (share of own generation, supply strategy).

>> Read also: Groupe E, SIG or Viteos, the electricity suppliers announce their increases for 2024

Laurianne Altwegg, vice-president of Elcom, told the press in Bern that she understood the difficulty for certain companies to absorb these new prices. “If the costs and increases are in accordance with the law, Elcom cannot intervene to lower the rates.” On the other hand, it intensified its controls.

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Rising market prices

This development is due to several factors but above all to the rise in market prices, explained Laurianne Altwegg. When supply contracts expire plays a decisive role.

Rising market prices will reverberate more strongly in 2024 than in 2023 for many managers. Much of the buying for 2023 was done before the price hike.

With the current downward price trend in the market, Werner Luginbühl, President of Elcom, expects prices to fall again in 2025. But there are no guarantees due to fluctuations.

>> Read again: Switzerland far from electricity saving targets

Laurianne Altwegg noted that the voluntary reduction in electricity consumption had little effect last winter in Switzerland. According to Urs Meister, director of the technical secretariat of ElCom, it is above all the gas-fired power stations abroad which determine the prices of electricity in Switzerland, even if only a fifth of the electricity in Europe is produced with gas. These plants cover the peaks of the market, hence their importance.

>> Interview with Laurianne Altwegg in Forum: Electricity price increase of 18 percent in Switzerland: interview with Laurianne Altwegg / Forum / 6 min. / today at 6:00 p.m.

Rates by municipality

The Elcom published on the internet the prices of the different municipalities. The data comes directly from the grid operators and is constantly updated by ElCom. About 1% of managers did not report their data on time.

Thus, the inhabitants of Braunau (TG) will have to put their hands in the wallet the most, and those of Zwischbergen (VS) the least. In French-speaking Switzerland, the inhabitants of Allaman, Aubonne, Féchy, Saint-Livres and Etoy, all Vaudois municipalities, will spend the most on the checkout. Conversely, those of Pully (VD) are the best off.

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