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Electricity Market

Large customers have been free to choose their electricity supplier since 1 January 2009. From 2014 this will also be possible for small businesses and private individuals. The phased liberalisation of the Swiss electricity market is by far the largest change experienced by Switzerland's electricity sector since electricity supplies first became available. Another innovation is the introduction of the feed-in tariff for electricity from renewable energy sources.

The phased implementation of electricity market liberalisation was launched when the Electricity Supply Act (StromVG) came into force in April 2008. While the act creates the framework for competition in the electricity market, market liberalisation only concerns the energy delivery market. To guarantee non-discriminatory access to all market participants, grid operations are separated from production and trading. Swiss electricity supplies and a free market are dependent on an efficient national electricity grid operated by the new national grid operator and owner, swissgrid.

In a first step, large customers (with a consumption volume of more than 100,000 kWh) are granted free market access. This includes businesses such as the branches of a wholesaler or major bakery. However, the second liberalisation step, starting in 2013, is still subject to an optional referendum. Since 2009 the cost of grid usage, energy delivery, taxes and services for the community as well as surcharges on high-voltage grid transmission costs have been billed separately.

swisselectric also supports compatibility between the liberalised Swiss electricity market and the EU, in order to retain the country's position as an international electricity hub. The European electricity market, and in particular the ability to retain long-term contracts, are important criteria in the bid to ensure energy security at home. The EU is driving forward its objectives for integration of the European electricity market and has had deregulated national electricity markets since mid-2007.






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