Parliament gives cautious welcome to electricity liberalisation

The House of Representatives has put its weight behind the progressive liberalisation of Switzerland's electricity market. But parliamentarians stressed they did not want any new company to monopolise the industry.

The House of Representatives has put its weight behind the progressive liberalisation of Switzerland’s electricity market. But parliamentarians stressed they did not want any new company to monopolise the industry and allow bosses to cash in on the sudden opening up of the market.

In a wide-ranging debate on electricity liberalisation, parliamentarians agreed to the creation of a privatised electricity network company. This would serve to separate the interests of the electricity producers from the network provider. Possible government participation could also ensure the company sticks to the rules of fairness.

The House of Representatives generally agreed the process of liberalisation was already in motion, but this should not turn electricity into a commodity for speculation.

However, parliamentarians from French-speaking Switzerland expressed fears that the French electricity giant EDF could dominate the market in their part of Switzerland, threatening local jobs and the environment.

This and other concerns, including some left-wing parliamentarians’ views that electricity was a natural monopoly which should be nationalised, were rejected by the House.

Representatives from the Radicals and the Green Party stressed the need for liberalisation on the grounds that it would reduce prices for the consumer.

Switzerland’s electricity industry commands the highest prices in the world. Market analysts predict the price of electricity after liberalisation could fall by up to 30 per cent.

The debate has been adjourned until Monday.

swissinfo with agencies