Switzerland severs unused financial lifeline for energy giant

Axpo has weathered the temporary energy storm created by the Ukraine war. © Keystone / Michael Buholzer

The Swiss authorities have cancelled a CHF4 billion ($4.6 billion) emergency credit line to key energy provider, Axpo, which no longer needs the financial back-up.

In autumn 2022, the federal government made the billions available to Axpo. The untapped lifeline was revoked on December 1 as it is no longer needed.

Axpo had announced that it was no longer dependent on the credit line, the Swiss energy ministry announced on Monday.

Since the decree was issued, key factors have changed significantly. The electricity company is now significantly less susceptible to unexpected and difficult to predict market upheavals.

In the fall of 2022, strong price increases on the European energy markets put Axpo in a bind. Because the suppliers had to stump up higher security deposits with energy exchanges. Axpo therefore asked the Federal Council for temporary liquidity support.

Axpo never used the credit line during this time, the energy ministry explained.

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