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September is a bad month for consumers in Switzerland: new health insurance premiums are announced at the end of the month and electricity prices are announced at the beginning of the month.
The bad news: On the contrary, there is no relief in either budget line. Electricity prices in Switzerland will increase by an average of 18 percent next year. A kilowatt-hour currently costs 32.14 centimeters, 4.94 centimeters more than this year. This was announced by the Federal Electricity Commission Elcom.
This average value says nothing about the tariff structure of individual providers; local prices may differ greatly and depend above all on the purchasing options of the power plants.
Price depends on purchase
For example, the power company of the city of Zurich produces electricity at its own power plants and is not subject to price fluctuations in the electricity market. Accordingly, customers especially need to bear the higher network costs. While these will increase by about 19 percent on average next year, the pure energy tariff still accounts for a slightly smaller portion of the total electricity cost.
Other suppliers obtain their electricity from the free market. For example, if long-term supply contracts have expired, the large increase in grid costs is accompanied by a sharp increase in energy prices.
Increased network costs
A typical household living in a large apartment that consumes 4,500 kilowatt-hours per year will pay 1446 francs for the electricity bill next year, which is 222 francs more than this year.
1. Network usage tariff: The price of transporting electricity from the power station to your own home via the grid. Network costs are determined by the costs of construction, operation and maintenance, as well as the costs of system services necessary for the stability of the network.
From 2024, as a result of the energy crisis, “winter reserve” will be included in the grid usage tariff. It covers the costs of emergency measures to ensure electricity supply during the winter months.
2. Energy tariff: The price of the electrical energy supplied. The grid operator either produces this energy with its own power plants or buys it from suppliers.
3. Taxes to the community: Municipal and cantonal taxes and fees. This includes, for example, concession fees or local energy taxes.
4. Network surcharge: It includes federal taxes to promote renewable energies, support for large-scale hydropower, and ecological rehabilitation of hydropower. The amount of the fee is determined annually by the Federal Council.
The energy tariff and the grid usage tariff are the factors that determine the price of electricity. They make up the largest portion.
1. Network usage tariff: The price of transporting electricity from the power station to your own home via the grid. Network costs are determined by the costs of construction, operation and maintenance, as well as the costs of system services necessary for the stability of the network.
From 2024, as a result of the energy crisis, “winter reserve” will be included in the grid usage tariff. It covers the costs of emergency measures to ensure electricity supply in winter.
2. Energy tariff: The price of the electrical energy supplied. The grid operator either produces this energy with its own power plants or buys it from suppliers.
3. Taxes to the community: Municipal and cantonal taxes and fees. This includes, for example, concession fees or local energy taxes.
4. Network surcharge: It includes federal taxes to promote renewable energies, support for large-scale hydropower, and ecological rehabilitation of hydropower. The amount of the fee is determined annually by the Federal Council.
The energy tariff and the grid usage tariff are the factors that determine the price of electricity. They make up the largest portion.
This year also had an impact on rising network costs. In other words, the costs incurred to deliver electricity to households. Next year, this includes winter reserve compensation, which power plants have to withhold to avoid power outages.
Interesting: Some of these grid costs also depend on electricity market prices, as energy is lost during transmission over the grid. This power loss is charged at market prices.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
