Swiss parliament approves bailout for electricity providers
The Swiss tax payer will be lender of last resort if electricity providers run into financial difficulties.
Keystone/ Valentin Flauraud
Companies that produce Switzerland’s electricity will have access to CHF10 billion ($10.5 billion) in emergency state credit should they run into financial difficulty in the coming months.
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Parlamento suíço aprova plano de resgate para provedores de eletricidade
The Federal Energy Office is concerned that energy companies are facing unprecedented price volatility as Russia restricts gas to Europe and France’s creaking nuclear power network struggles to maintain output.
“We have no time to lose, we have to be prepared for a worst-case scenario,” Energy Minister Simonetta Sommaruga had said when presenting the bailout proposal in April.
Swiss households are expecting an average 27% hike in electricity bills as providers pass on the costs to consumers. Parliament has decided companies like Axpo need extra protection to avoid bankruptcies affecting the critical energy sector.
The rescue package was met with some opposition in parliament, particularly from the right-wing People’s Party. Some parliamentarians criticised energy companies for failing to do their homework and for extracting excessive profits.
But the majority voted in favour of protecting the electricity network with emergency loans with the state acting as lender of last resort.
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Leading Swiss energy firm granted credit to avoid cash crisis
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The Swiss government has granted Axpo a CHF4 billion credit line to prevent a liquidity crisis for the country's largest energy company.
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