Switzerland will have to dig deep into its pockets for electricity and gas in 2023

Starting next year, Switzerland will have to pay an average of 27 percent more francs for electricity. The average four-person household will pay just under 27 centimeters per kilowatt-hour in 2023, according to calculations from the Federal Electricity Commission. Calculated over the year, this results in an electricity bill of 1,215 francs, which is 261 francs more than the previous year.

However, electricity costs can vary greatly from region to region. There are areas where the costs are more than double. The Bern-based network operator Licht- und Kraftgenossenschaft Richigen demands about 175 percent more. According to the model calculation, the annual electricity bill will increase around 2029 to 3185 francs per year.

Gas uncertainty will continue

The electricity market in this country is regulated by law for households. Energy providers can pass their costs on to their customers, but they can change their electricity tariffs once a year on the anniversary. About 630 companies must notify the supervisory authority of new prices for the following year by the end of August.

The cost of gas used for heating has also increased significantly. According to the Federal Statistical Office (BFS), the gas price in November averaged CHF 3,562 per 20,000 kilowatt-hours. A year ago it was only 2128 francs and in November 2020 it was only 1882 francs.

“The situation remains tense despite some calming down,” said Michael Walser of Energie 360 ​​Grad, one of Switzerland’s largest gas suppliers, when asked by the AWP news agency. However, there is still a risk of gas shortages this winter. “We should also expect fluctuating prices in the near future.” And: “We now assume that this uncertain situation will continue through the coming winter.” Therefore, at the moment it is extremely difficult to predict the further development of prices.

Heating oil and gasoline are also more expensive

A similar picture applies to fossil fuel oil: market prices for the North Sea variety Brent exploded in the spring after the start of the Ukraine war. Meanwhile, they have calmed down again from these highs, but are now about 10 percent higher than they were a year ago.

These moves also affected heating oil and fuel costs, such as gasoline and diesel, in Switzerland. According to BFS data, the price of heating oil in Germany rose to around 140 francs per 100 liters in November (with a purchase volume of 3,000 to 6,000 liters). Two years ago it was 63 francs.

According to the comparison portal Heizoel24.ch, the price has dropped a bit at the moment, but remains at a relatively high level at 131 CHF. With a demand of 3000 liters – this is usually how much a heating oil tank in Switzerland costs.

Drivers also paid an average of 1.92 francs per liter for gasoline and 2.26 francs per liter for diesel. In November 2020, it was CHF 1.39 and CHF 1.50, respectively. Same with heating oil: Prices have dropped slightly since November 2022, but are still significantly higher than they were two years ago. According to Touring Club Schweiz (TCS), it’s currently 1.79 CHF for petrol and 2.08 CHF for diesel.

Concerns about diesel supply

Especially the price of diesel has increased a lot. “The world market is still characterized by a noticeable shortage of diesel,” says Thomas Puls of the Cologne Institute for Economic Research. Medium distillate prices on the ICE energy exchange are significantly higher than oil prices, which also indicates an ongoing shortage.

“While China has now increased its output, it probably won’t have any appreciable impact on Europe,” says the economist. If Russian diesel imports stop next year, it will be difficult to replenish these quantities in Europe. Although imports from Saudi Arabia have already increased, it is becoming clear that it will be difficult to supply diesel to Europe in the coming months. (SDA/smt)