by Switzerland’s electricity supply to end-users is secured by more than 600 companies. Suppliers range from small regional utilities to international energy groups. Most of them are public sector entities. © Keystone/Gaetan Bally The government has decided to prepare a bail-out plan for Switzerland’s main electricity companies to prevent an energy shortage. The aim is to ensure financial liquidity for companies trading energy on an international scale and to avoid an electricity crunch in Switzerland, Energy Minister Simonetta Sommaruga announced on Thursday. She said the bankruptcy of a major electricity company could set off a chain reaction threatening the energy supply of Switzerland. “We have no time to lose, we have to be prepared for a worst-case scenario,”
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swissinfo Business and Economy, Business, Featured, newsletter
This could be interesting, too:
Frank Shostak writes Assumptions in Economics and in the Real World
Conor Sanderson writes The Betrayal of Free Speech: Elon Musk Buckles to Government Censorship, Again
Nachrichten Ticker - www.finanzen.ch writes Bitcoin erstmals über 80.000 US-Dollar
Nachrichten Ticker - www.finanzen.ch writes Kraken kündigt eigene Blockchain ‘Ink’ an – Neue Ära für den Krypto-Markt?
Switzerland’s electricity supply to end-users is secured by more than 600 companies. Suppliers range from small regional utilities to international energy groups. Most of them are public sector entities. © Keystone/Gaetan Bally
The government has decided to prepare a bail-out plan for Switzerland’s main electricity companies to prevent an energy shortage.
The aim is to ensure financial liquidity for companies trading energy on an international scale and to avoid an electricity crunch in Switzerland, Energy Minister Simonetta Sommaruga announced on Thursday.
She said the bankruptcy of a major electricity company could set off a chain reaction threatening the energy supply of Switzerland.
“We have no time to lose, we have to be prepared for a worst-case scenario,” Sommaruga told a news conference.
Under the plan, the government would intervene as “lender of last resort”, while energy firms and their shareholders are urged to take the necessary measures to cope with the massive price hikes since the end of last year.
Companies are competing in a highly volatile international market, made more difficult by the war in Ukraine and Russia’s position as an important export nation of gas, notably to western Europe.
Strict conditions
Sommaruga said the conditions for the bail-out package would be strict, including a ban on paying out dividends, to discourage too many applicants.
It’s estimated that only a few electricity companies would qualify for the government support of up to CHF10 billion ($10.67 billion) in total over the next four years.
Sommaruga said the government will present a bill to parliament to discuss and adopt the law in June.
In January, one of the main Swiss electricity companies, Alpiq, asked the government for financial assistance, but later withdrew its request.
The energy ministry set up a task force amid calls from the right-wing Swiss People’s Party to focus on domestic energy production and the postponement of a planned reduction in CO2 emissions.
Other measures include setting up a hydropower reserve and the construction of several gas power plants.
You Might Also Like
Bankruptcies rise as coronavirus bail-outs phase out
2022-04-05
The number of companies and individuals declaring bankruptcy rose 9.1% last year, which coincided with a gradual withdrawal of state-backed financial support during the Covid-19 pandemic.
Why governments need to tackle the impact of trade on climate change
2022-01-16
In 2021, global carbon pollution returned almost to 2019 levels, after a drop during the lockdowns of the pandemic year 2020. Copyright 2021 The Associated Press. All Rights Reserved
The production and trade of goods is at the heart of the globalised market and has a significant environmental impact. Yet there was little discussion at COP26 on how to make it more sustainable, the former director of the World Trade Institute (WTI) tells SWI swissinfo.ch.
This content was published on January 14, 2022 – 09:00
January 14, 2022 – 09:00
Sara Ibrahim
Writes about the impact of new technologies on society: are we aware of the revolution in progress and its consequences? Hobby: free thinking. Habit: asking too many questions.
More from this author
| Italian Department
The goods we
Watchmaking workforce remains stable despite pandemic
2021-12-28
The annual census of the Swiss watch industry labour force found that partial unemployment helped the industry weather the pandemic over the last year. The number of employees in the industry remained stable in 2021 while the share of high skilled staff increased.
In global supply chain crisis, even Swiss skis are counting the cost
2021-12-27
Shortages of raw materials and logistics bottlenecks have made 2021 a tough year for Swiss manufacturers, and contributed to a downgrade in the government’s GDP growth forecast for the economy next year.
How a secretive central bankers’ club responds to crises
2021-12-24
Every other month, the world’s most influential central bank governors gather in Basel to swap notes, reinforce personal ties and untangle the technical details of keeping money flowing around the world.
Falcon bank fined for money laundering, ex-CEO acquitted
2021-12-18
A Swiss court has found the Zurich-based Falcon Private Bank guilty of money-laundering offences. The Federal Criminal CourtExternal link on Wednesday ordered the Abu Dhabi-owned bankExternal link to pay a fine of CHF3.5 million ($3.8 million) for failing to set up the necessary controls. It was the first time that a Swiss bank was taken to court over accusations of money laundering.
Call to tap potential of professional working women
2021-11-17
Women make up half of the highly skilled workforce in Switzerland, but work fewer hours, according to a study published on Tuesday. One in three would like to work more, under certain conditions.
Swiss companies face severe supply chain bottlenecks
2021-10-25
Four out of five firms surveyed by the Swiss Business Federation (economiesuisse) have complained of problems in getting hold of raw materials and essential parts for their goods.
Tags: Business,Featured,newsletter