People in Switzerland are facing an explosion in gas and electricity prices, as the cost of energy rises across Europe. Turbulent energy markets have been reeling from the effects of the war in Ukraine and COVID supply shocks in Asia.
Gas prices have already reached new highs in 2022, with Energie 360°, the gas provider for Zurich, reporting that wholesale prices have risen by 84 percent in the six months leading up to April 1. As Europe tries to wean itself off of Russian oil and gas, the search for new sources of fuel has caused the markets to flux dramatically.
Company spokesperson for Energie 360°, Michael Walser, said that the tense situation in the markets will be felt in the cost of energy and other utilities in Switzerland. He said that fixed annual gas prices are no longer practical and that, “We are constantly reassessing the situation and, if necessary, temporarily adjusting the gas prices on a monthly basis.”
Energy Minister Simonetta Sommaruga told reporters that the government is waiting to see how private companies will react to the high prices. She said the Federal Council will delay its reaction to see how high prices are set for consumers the next time tariffs are adjusted, which is expected to happen in the autumn.
Already, the government is in the midst of drafting emergency energy legislation that would provide financial incentives and bail-out precautions to prevent a major supplier from going bankrupt. When asked about the price rises, Sommaruga said that a price cap on the cost of energy was out of the question.