In 2023, the price of a kilowatt-hour will also be just under half the price of actual energy and well over half the price of grid usage and taxes. As a result, a reduction in network tariffs could help counter rising electricity prices.
Functioning electrical networks are important and must be maintained. State-regulated network tariffs must cover the costs and provide a reasonable return – after all, the investment must be made. Appropriate does not mean gilding. But that is exactly what has happened in recent years. With network tariffs, an impressive return on equity of 6.96 percent and an interest rate on borrowed capital of 1.75 percent can be achieved – with virtually no identifiable risks, because: who can do without an electricity connection?
Let’s face it, we’ve gilded old lines in the past. It is difficult to say whether we really encouraged new investments with a high interest rate. In any case, the construction of new electricity networks is more likely to fail due to approval procedures and political resistance than due to lack of funding. For many years I have recommended lowering interest rates to a reasonable level. My last recommendation, from June of this year, was sent directly to the Federal Council. (For those who are interested: Documents can be viewed on my website.)
Now this issue is dealt with by Parliament. The Council of States requires that interest on equity be risk-adjusted and that interest on debt be adjusted for market conditions. Good! I hope that the National Council will come to the same conclusion. In fact, there is no need to change the law. All that would be needed is an adjustment of interest rates, and that falls within the purview of the Federal Council.
Quick action is needed for another reason. The hydropower reserve, which is meant to help avert a looming shortage, will be funded by a surcharge on network fees. We hope that this temporary premium will be at least reduced by the adjusted interest rate.
The situation is difficult. The solidarity of everyone is required, including network operators who have been making very good money for years.
I would also like to encourage all cantons and communes to re-examine what options they have for exempting their residents from energy taxes. Some reserves are created in case of “bad times”. Well, bad times will be here.