Electricity prices to rise
Prices for electric power from EBM are poised to rise in 2017 on average by 1.5 centimes per kilowatt-hour. For a household of four with an annual consumption of 4,500 kilowatt-hours, this represents an increase of 68 Swiss francs per year. The price hikes are due to the higher energy costs incurred from long-term subscription contracts with Swiss power producers and the steeper fees charged by the federal government for compensatory feed-in remuneration (KEV). The price increase for the coming year will put EBM’s electricity price tags roughly on par with 2014 pricing.
Energy costs for long-term subscription contracts with Swiss power producers are set to rise next year. One reason for the increase is that Leibstadt and Gösgen nuclear power plants have opted to change their valuation method for entitlements from the state decommissioning and disposal funds so as to be based on market value. As a result, fluctuations in the funds’ yields are impacting annual costs. Owing to the developments on the financial markets, the change in valuation method has meant that annual costs are higher at both these nuclear power stations. Added to this is the compensatory feed-in remuneration levied by the federal government for promoting power generation from renewable energy sources (KEV), which was likewise increased, as well as uncovered grid costs that must now be settled retroactively.
For years, EBM has been calculating its electricity prices based on market conditions. Consequently, it passes on cost increases as well as cost decreases to its customers. The Swiss Federal Electricity Supply Ordinance stipulates that tariffs for provision of basic power supply services be oriented on actual power generation costs and long-term subscription contracts. The added costs associated with these external conditions will make electricity more expensive in 2017, raising prices on average by 1.5 centimes per kilowatt-hour. This represents an extra expense of some 68 Swiss francs per year for a household of four with an annual power requirement of 4,500 kilowatt-hours, while a single-person household consuming 1,600 kilowatt-hours per year will pay about 24 Swiss francs more annually. The effective additional costs will vary depending on the customer segment and consumption profile (high or low tariff rates). The increased costs for the coming year will put EBM’s electricity price tags roughly on par with 2014 pricing.
Encouragingly, renewable energy sources are continuing to gain competitiveness as the power generating costs steadily approach parity with conventional, fossil fuel-fired production. This trend is having a positive effect on the electricity products of EBM. In the coming year, the price differences will already narrow between the three power products EBM GREEN, EBM STANDARD and EBM GREY. The strategy EBM launched years ago to establish its own power plant portfolio with renewable energy sources is thus sustainably bearing fruit – for the good of the environment and to the benefit of our customers.
- Joachim Krebs, Head of Corporate Communication, Tel. +41 61 415 43 85, E-Mail j.krebs@ebm