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Romerio, Franco --- "Opening the Swiss Electricity Market to Competition" [2003] ELECD 52; in Glachant, Jean-Michael; Finon, Dominique (eds), "Competition in European Electricity Markets" (Edward Elgar Publishing, 2003)

Book Title: Competition in European Electricity Markets

Editor(s): Glachant, Jean-Michael; Finon, Dominique

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843761785

Section: Chapter 10

Section Title: Opening the Swiss Electricity Market to Competition

Author(s): Romerio, Franco

Number of pages: 14

Extract:

10. Opening the Swiss electricity
market to competition
Franco Romerio

INTRODUCTION
Market liberalization means the Swiss electricity sector is undergoing
radical change. In this chapter I shall outline those changes in the light of
the initial situation.
From an institutional point of view, the organization of the Swiss
electricity sector is clearly influenced by the federal context: the confedera-
tion provides legislative guidelines, while the cantons retain a marked
degree of autonomy. Switzerland is home to some 1200 electrical compa-
nies, of which seven play a dominant role. In most cases the capital belongs
to public authorities; however, several private companies play a major role
at local, regional or inter-regional level. Until very recently, the market was
closed to competition. Although not part of the European Union,
Switzerland does represent a focal point for European interconnection.
Hydroelectric power stations with reservoirs1 mean Switzerland can help
cover peaks on the Central European network.
I shall begin by presenting the main characteristics of electricity con-
sumption and production in Switzerland, and of external trade in electric-
ity. I shall then examine the organization of the market, dispatching and
networks, the relations between electrical companies and between these and
public authorities. I shall also comment on prices, costs, concession fees
and water royalties, as well as the question of `stranded investments' in
hydroelectric and nuclear power plants. I shall conclude by outlining the
federal electricity market legislation of 15 December 2000, the legal basis
for the process of liberalization which began de ...