Price of electricity in Switzerland set to surge in 2024

The connection fee will more than double in 2024 for the average household, says grid operator Swissgrid. © Keystone / Christian Beutler

The average Swiss household will see its electricity connection costs double next year, as the grid operator plans for the first time to charge consumers for the cost of maintaining winter reserves.

An average household with an annual consumption of 4,500 kilowatt hours (kWh) will pay CHF146 ($158) for connecting to the power grid – more than double the current fee of CHF70 this year, the operator Swissgrid announced on Wednesday.

Behind this hike is an increase in the price of the transmission system coupled with the government’s decision to pass on the cost of keeping winter reserves to both private households and businesses. For the first time, consumers will bear the cost of hydroelectric reserves, reserve power stations and emergency power generators, all measures meant to ensure the country’s supply.

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Swissgrid explained that the increase in prices was being driven by external factors on which it had no influence. Prices on the European electricity markets are expected to remain high amid an ongoing energy crisis; Swissgrid also anticipates a significant increase in procurement costs for the reserve of control power.

The operator believes that if it joined control energy platforms in the European Union, it would have a positive impact on fees and improve market liquidity and the security of the system. However, Switzerland and the EU have not signed an electricity agreement, as talks on a framework deal on bilateral relations remain stalled.

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