Swiss price watchdog senses public concerns about inflation
Price watchdog Stefan Meierhans once again received more messages from citizens last year, with around one in five related to energy prices.
Presenting his annual report in Bern on Monday, Meierhans said he believed that state-owned companies had a particular duty in times of inflation.
In 2022 the price watchdog received 2,368 messages from citizens. Since the end of 2021 the number has almost doubled, according to a press release. In 2023 alone, there was an increase of 17% to 2,775 compared to the already record-breaking previous year.
Meierhans explained that this development was an expression of growing concern and discontent among the population about the rising cost of living. The implementation of measures to combat Switzerland’s high prices is far more urgent for large sections of the population than the national consumer price index would suggest, he said.
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Energy was the most frequent topic in the reports submitted to the price watchdog by citizens, namely in 20.4% of cases. Healthcare followed in second place (13.4%), well ahead of public transport (5%).
The price watchdog also saw opportunities to reduce electricity costs. He complained that the public and businesses have been paying significantly excessive usage fees for years. This amounts to a three-digit million sum per year, he said.
As far as petrol and diesel prices are concerned, the price watchdog examined the margins of refineries and petrol stations. The price increase cannot be fully explained by higher crude oil prices, he stated. It was certain that there had been an increase in margins at refineries. Whether this was a temporary disruption of the market mechanism or a lasting phenomenon would be investigated further, he said.
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The price watchdog cited the agreements reached with Swiss Post and the public transport industry organisation Alliance SwissPass as key results of his work. In the case of Swiss Post, planned price increases managed to be reduced by 40%.
In July Swiss Post announced it would be increasing its rates for letters and parcels at the start of 2024. Since the beginning of the year, A and B Mail letters have cost CHF0.10 ($0.11) more each, while prices for priority and economy parcels have risen by CHF1.50 each.
As far as public transport prices are concerned, Meierhans emphasised that, among other things, it had been possible to prevent holders of a second-class general travelcard from being overcharged. Since the timetable change, the second-class general travelcard has cost CHF3,995; Alliance SwissPass originally wanted a price increase to CHF4,080.
Health insurance premiums
The price watchdog also called on the public sector itself to exercise “the utmost restraint and a sense of proportion” when increasing charges for water, wastewater and waste. Profits on fees are not permitted, he said, noting that it was pleasing that many of the recommendations had been heeded.
As in previous years, Meierhans also called for system errors in the healthcare system to be eliminated and, for example, for drug prices to be lowered to the level of other European countries. In 2023 he recommended measures totalling CHF1 billion in the healthcare system with the aim of slowing down the rise in health insurance premiums.
However, whether the potential identified in the healthcare and electricity markets could be realised was in the hands of the legislator, Meierhans said. The price watchdog intends to convene a second purchasing power summit in the middle of the year. Following a first round with the consumer side, this time the business community will also take part.
The price watchdog will also monitor the impact of the VAT increase on prices and scrutinise retail prices, where abuses cannot be ruled out. In 2024 the price watchdog will have three additional posts and thus more than 20 full-time positions.
Translated from German by DeepL/ts
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