A new survey from the Association of Swiss Electricity Companies (AES) has forecast that after significant rises in 2022, 2023 and 2024, the price of energy in Switzerland will finally be coming down. However, households will only start to feel the benefit from 2025 onwards.
According to the report, of the 83 participating energy suppliers, 75 told the AES that they are “definitely” or “probably” considering cutting the cost of electricity. The majority of suppliers say that they will likely be cutting bills by the beginning of 2025.
Based on data from 52 providers, which collectively offer 35 percent of Switzerland’s electricity supply, all families and individuals that pay for their power will see prices fall from an average of 33 rappen (cents) per kilowatt hour to 30,5 rappen by next year. For a household that consumes 2.500 kilowatt hours of electricity per year - a four-room apartment with electric appliances and utilities, for example - bills should fall by 10 percent.
The main reason for the good news is the stabilisation of the European energy market following the price shocks resulting from the Russian invasion of Ukraine. In 2022 and 2023, the fear of power shortages, and efforts from EU and Swiss governments to stockpile energy for winter and wean themselves off Russian energy supplies meant electricity prices rose dramatically.
Now, with energy prices in Europe and the cost of the mandatory Swiss energy reserve both falling, the two factors which influence the price of energy for consumers are now in decline. As a result, the AES argued that households and entrepreneurs in Switzerland should soon see their bills fall.
However, while signs are positive, it will still be up to the Federal Electricity Commission (ElCom) to determine electricity tariffs for 2025. These figures should be available to the public by the beginning of September.