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There is an old power strip on the table with Michael Frank’s laptop plugged into it. As director of the Association of Swiss Electricity Companies, he is concerned with ensuring the flow of electricity. Not always an easy task.
Blick: Mr. Frank, we have had another winter without a lack of electricity. Was it all just fear mongering?
Michael Frank: No, in the winter of 2022/23 the risk was high and real, and in fact we barely got through it – the price explosion made that clear. With the war in Ukraine and the failure of almost half of France’s nuclear power plants, no one knew how the situation would develop. At persistent minus 10 degrees it would have taken only two weeks for the system to collapse.
Michael Frank (60) has been director of the Association of Swiss Electricity Companies, based in Aarau, since 2011. The more than 400 members of the umbrella organization produce more than 90 percent of Switzerland’s electricity. Frank, a trained lawyer, previously worked at Swisscom and the electricity company Axpo.
Michael Frank (60) has been director of the Association of Swiss Electricity Companies, based in Aarau, since 2011. The more than 400 members of the umbrella organization produce more than 90 percent of Switzerland’s electricity. Frank, a trained lawyer, previously worked at Swisscom and the electricity company Axpo.
The Federal Administrative Court sees it differently. It has declared the operating license for the Birr reserve power plant illegal.
This judgment is incomprehensible. Everyone has liability insurance – and no one blames you if you don’t need it. The power plants are insurance. The Federal Council acted correctly.
The energy situation has now calmed down. Are electricity prices falling again?
The war in Ukraine is not over yet. If Russia gains strength again, things will become difficult. Also for energy supply.
But if the situation remains stable, prices will have to drop next year!
In some places on the wholesale market we have almost returned to pre-war levels. However, due to the lack of market opening, this has no direct impact on electricity prices for households. The electricity price for the basic supply is determined annually. Customers took advantage of this at the beginning of the war. We won’t know the prices for 2025 until the end of August.
What do you expect?
From the current perspective, prices should at least remain stable and even tend to decline slightly. But this cannot be guaranteed. We are also in the midst of restructuring our energy system.
On June 9, we will vote on the electricity law, which should give the expansion a boost. Will electricity become more expensive if we vote ‘yes’?
We want to become climate neutral, the only way to do that is through electrification. This means: today we need 60 terawatt hours of electricity annually; in 2050 there will be 90. This requires more power plants and expansion of the networks. This is not free. On the other hand, we save because we need less fossil energy. But if we don’t expand domestic electricity production, it will cost us much more.
And if the electricity law does not pass, does this mean that the lights have to be turned off?
No, I don’t want to paint the devil on the wall. But if we do not expand quickly with the Electricity Act, we will become even more dependent on foreign countries. If we have to start all over again, the solutions won’t get any better. The Electricity Act, on the other hand, provides the ‘four S’: safe, clean Swiss electricity.
Even if the vote were yes, complaints such as those now against the Trift hydroelectric power plant, which must be explicitly supported in the Electricity Act, could slow expansion.
We have no guarantees for anything. If splinter groups fight everything with objections, we will not achieve our goals even with an electricity law. The entire process is unnecessarily delayed. Trift is a crucial power plant because it contributes to a stable winter supply.
They are now targeting environmentalists, and there is also resistance from the right. The SVP could also say no.
Two-thirds of the parliamentary group in the SVP voted yes. Will the Assembly of Delegates reverse this? I’m excited. After all, SVP councilor Albert Rösti is committed to the electricity law. In addition, a broad alliance of politics, business and major environmental organizations will be involved. I am confident.
Would a no be a door opener for new nuclear power plants? The Council of States has just requested a test report on this.
In the long term, we need to be open to technology. It would be absurd if we rejected a future technology that we know nothing about today. Even if it is democratically desired, there will not be a new nuclear power plant in the next ten to fifteen years. However, we must solve the winter electricity problem now and guarantee security of supply for years to come. We also have to have the debate.
Back to the expansion: our electricity grids cannot transport that much extra electricity.
From a technical point of view, network expansion is not a moon landing, but a proven feat of engineering work. But things are not moving forward. Until now, the Internet has not really been taken seriously in politics. That is now changing. There are also objections after objections. In one project it took decades before the line could be expanded. This is not acceptable.
You have already mentioned the electricity market: it needs to be liberalized – not least in order to be able to conclude an electricity agreement with the EU. But that is very controversial.
The EU stipulates that customers have the freedom to choose whether they want to remain on the basic supply or buy electricity on the open market. We have to sort this out in our own country. In any case, the basic provision must ensure that no one is disconnected from electricity. However, the customer should have the option to choose the supplier of his preference. The question is: who doesn’t like having a choice?
The unions.
Especially with a view to purchasing power, they should have an interest in an electricity agreement and a free choice of provider. This counteracts rising costs and therefore has a positive effect on prices.
At the beginning of the war in Ukraine, prices on the open market rose sharply, which caused problems for many companies. If consumers could return to basic services, perhaps unions would get on board.
This may not be an option for large companies. Once free, always free. Whether it should be possible for ordinary citizens is a political question. It is conceivable that there would be a right of return in combination with a blocking period, so that there is no constant switching back and forth. The power plants must be able to plan. I am convinced that we will find a pragmatic and widely supported solution.
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
