Water rate remains unchanged until 2024
Originally, the Federal Council wanted to reduce the water rate. However, the maximum water rate is now to remain at its current level until the end of 2024 and, as before, amount to a maximum of 110 francs per kilowatt of gross output (Fr./kWbr). This was decided by the Federal Council on May 23, 2018.
With the regulation of the new water tariff, the Federal Council states that a water tariff model should not be developed until the basic features of the new electricity market, which will be defined in the forthcoming revision of the Electricity Supply Act, are known.
In the consultation on the revision of the WRG, the Federal Council proposed to reduce the maximum water rate to 80 Fr./kWbr for three years. It also put up for discussion a flexible water rate model to be introduced thereafter as well as a reduction of the water rate only for loss-making power plants.
Devastating result of the consultation
The discussion on making the water rate more flexible was welcomed in the consultation, but judged to be premature. Moreover, the majority of cantons and municipalities do not see the reason for the deficits in the hydropower sector in the water rate, but rather in wrong political and entrepreneurial decisions, as the Federal Council further states.
The majority of the electricity industry considers the current system - a rigid water rate model and financing by producers in a partially open market - to be a system error. It is therefore in favor of the immediate introduction of a flexible water rate regulation and solidarity-based financing of parts or all of the water rate.
Mountain cantons: factually and politically correct
In view of the poor outcome of the consultation for the Federal Council, the national government concludes that the existing situation should be maintained and at the same time a new regulation should be initiated as soon as the future framework conditions are clearer.
This includes the ongoing work on the revision of the Electricity Supply Act. This involves the opening of the electricity market, but also the planned electricity agreement with the EU. The Federal Council is already instructing the Uvek to analyze and further develop various new water tariff models. (Source: srf)
