10/20/2025, 10:00
| News
Its implementation into national law requires fundamental revision.
The electricity agreement is part of the ‘Bilateral III’ package negotiated beetween Switzerland and the EU. The package aims to stabilise and further develop bilateral relations with the EU. It consists of an update to existing agreements and three new agreements: on food safety, health and electricity.
The electricity agreement enables Switzerland to integrate into the European internal electricity market, establishes a framework for coordinated and efficient cross-border electricity flows and ensures Switzerland's participation in the relevant EU committees. Both sides’ focus is on security of supply, which no country can achieve on its own in today's highly interconnected energy system.
Prevent Swiss Finish: deregulation strongly demanded
The proposed legislative amendments for domestic implementation, however, are not yet convincing so far and require fundamental revision. The available scope for design must be used much more consistently to ensure a market-oriented approach and leaner regulation. For example, the design of the regulated basic supply as close as possible to the status quo of the “Mantelerlass” in a fully liberalized market is neither practical nor does it serve consumer protection. In addition, the retained mandatory hydropower reserve represents a competitive disadvantage for Swiss hydropower operators in the European context and would no longer be acceptable at the latest once an electricity agreement is in place. It should be tendered on a competitive basis, as is common practice in the EU. Finally, given the shortage of skilled labour in the industry, monitoring working conditions leads to an unnecessary Swiss finish, which entails a disproportionate administrative burden.
Negotiation outcome is a great success
The electricity agreement has been finalised by both sides. However, it still has to be ratified by the EU and Switzerland. The consultation process in Switzerland dealt with the necessary amendments to national legislation so that the electricity agreement can be implemented in Switzerland (= domestic implementation).
In its statement, Alpiq supports the electricity agreement and considers the excellent negotiation outcome to be a major success. From an economic perspective, it is crucial for Switzerland's electricity supply to have an electricity agreement with the EU. After all, Switzerland is not an island – we are integrated into Europe economically, in terms of the labour market , as well as energy policy and physical infrastructure. But only with an agreement can we truly benefit from the advantages of this interconnectedness.
