Electricity agreement
¶ Electricity agreement
Chapter 2.11 of the dispatch (pp. 702-815) covers the new internal market agreement on electricity. At over 110 pages, it is one of the most extensive chapters, governing Switzerland's integration into the European electricity market while protecting universal service and hydropower.
¶ Summary
Switzerland is connected to the European interconnected electricity network via 41 cross-border power lines. Without contractual regulation, increasing marginalisation threatens: Swiss interests are not taken into account in European grid planning and market regulation. The electricity agreement creates a legal basis for participation in the EU's internal electricity market.
Negotiations comprised 13 rounds in 2024 and resulted in a compromise combining market opening with protection of universal service and hydropower.
¶ Central elements
| Element | Regulation |
|---|---|
| Market opening | Yes, with universal service protection |
| Universal service | Consumption threshold of 50 MWh for the protected sector |
| Hydropower concessions | Not affected |
| Public service | Guaranteed |
| ElCom | Continues to supervise |
| DSO unbundling | Required (distribution system operators) |
| Solar transition period | 3-year remuneration protection |
¶ Market opening with universal service
The agreement provides for full market opening while guaranteeing universal service for households and SMEs:
- Consumption threshold: end consumers with annual consumption below 50 MWh retain the right to universal service (regulated tariff)
- Large consumers above 50 MWh must purchase on the free market
- Municipalities may continue to operate their electricity utilities
¶ Hydropower concessions
A key negotiation success: hydropower concessions are not affected by the agreement. This means:
- Cantons and municipalities retain their concession sovereignty
- Reversion rights remain unchanged
- Water royalties are not affected
- No liberalisation of hydropower use
¶ Public service and ElCom
Public service in the electricity sector remains guaranteed:
- ElCom (Federal Electricity Commission) continues to supervise the Swiss electricity market
- Grid tariffs are regulated
- Security of supply takes priority
- Investments in renewable energies are protected
¶ Distribution system operator (DSO) unbundling
The agreement requires legal and accounting unbundling of distribution system operators:
- Separation of grid and retail (unbundling)
- Non-discriminatory grid access for all suppliers
- Transition periods for small grid operators
¶ Solar transition period
For existing solar power remuneration contracts (feed-in remuneration), a 3-year transition period applies:
- Existing contracts are not retroactively amended
- New installations benefit from the market premium model
- Energy Strategy 2050 remains fully compatible
¶ LSVA analogy: emissions-based
The agreement contains an emissions-based component analogous to the LSVA:
- Grid usage charges may contain CO2 components
- Promotion of renewable energies via grid charges possible
- Compatible with the EU Emissions Trading System (ETS)
¶ Security of supply
The electricity agreement strengthens Switzerland's security of supply:
- Integration into European solidarity mechanisms
- Access to European reserve capacities
- Coordinated crisis preparedness
- Better grid planning through participation in ENTSO-E
¶ Key points
| Aspect | Detail |
|---|---|
| Agreement type | Internal market agreement |
| Cross-border lines | 41 |
| Market opening | Yes, with universal service protection |
| Universal service threshold | 50 MWh annual consumption |
| Hydropower concessions | Not affected |
| Supervisory authority | ElCom |
| Solar transition period | 3 years |
| Negotiation rounds 2024 | 13 |
¶ References
- Dispatch of the Federal Council on the Switzerland-EU package, chapter 2.11 (pp. 702-815), FedGaz 2025
- ESA (Electricity Supply Act), current version
- ElCom: activity report 2024
- ENTSO-E: Ten-Year Network Development Plan 2024