Tensions increase over electricity prices

Plans to increase the price for electricity have come in for further criticism by major businesses and political parties.

Utilities services announced price increases for next year as part of the gradual opening up of the electricity market.

Leading retailer Migros said it was not acceptable that prices soar by more than 20 per cent next year.

“It is a scandal. The decision could backfire because voters will have the final say on further steps towards liberalisation,” chief executive Herbert Bolliger told the SonntagsZeitung newspaper.

For its part, the life science group Lonza argued higher electricity costs were damaging for manufacturing companies, which risked losing their competitive edge.

However, representatives of the electricity industry dismissed the criticism saying the price increases were moderate.

The cabinet on Wednesday called on electricity producers to reconsider because the hikes hit low-income households and Swiss businesses hard.

Three years ago parliament voted for a two-stage approach to liberalisation of Switzerland’s electricity market. The proposal foresees opening the market to big electricity providers in 2007 and to private homes in 2012.