No extension for state guarantees to electricity companies (cross-border guide)
The States' Commission on the Environment, Spatial Planning and Energy has decided not to extend state guarantees for electricity companies beyond 2026.
Contesto
In short - No extension for state guarantees to electricity companies - Companies will have to take risks autonomously from 2027 - The decision follows the opinion of the House of People ## Key facts - What : Decision not to extend state guarantees for electricity companies - When: Starting from 2027 - Where: Switzerland - Who: Council of States Commission on the Environment, Land Planning and Energy - Amount: Unspecified The Council of States Commission on the Environment, Land Planning and Energy (CAPTE-S) has decided not to extend state guarantees for systemically relevant electricity companies beyond 2026. This decision means that, from 2027, companies will have to take risks independently in the event of a crisis. CAPTE-S has aligned its position with that of the House of the People, proposing not to enter into a Federal Council project that envisaged extending the Confederation's financial aid until 2031. The Federal Council had proposed to extend by five years the Federal Law on Subsidiary Financial Aid to Rescue Systemically Important Enterprises in the Electricity Sector (LAiSE), which came into force in the wake of the 2022 energy crisis. ### The context of the decision The rescue mechanism currently in place allows the companies concerned - Axpo, Alpiq and BKW - to avoid problems
Dettagli operativi
Implications of the decision The CAPTE-S decision has several implications for the Swiss energy sector. First of all, electricity companies will have to prepare to manage risks independently, without the financial support of the Confederation. This could lead to a greater focus on risk management and financial planning by companies. ### Responsibility of companies and owners The Commission has reiterated that public bodies that own companies should not be allowed to shirk their responsibilities. This means that Cantons, Municipalities and other public entities will have to take responsibility for ensuring the security of energy supply. CAPTE-S considers that the law on enforcement and bankruptcy provides sufficient tools to ensure the maintenance of the essential functions of an undertaking of systemic importance for electricity even in the context of a bankruptcy or an arrangement procedure. ### Preparing companies Compared to when LAiSE came into force in 2022, systemically important companies in the sector have been better prepared to deal with any market distortions. However, the Commission expressed doubts that the owners have taken all necessary measures to address the crises. This could lead to more pressure on companies to prove their ## Recommended tools For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.
Punti chiave
What to do for power companies Systemically important power companies will need to prepare to manage risks independently from 2027. This means they will need to take steps to ensure their financial stability and security of energy supply. ### Preparation steps 1. Risk assessment : Companies will need to conduct a thorough assessment of the risks they are exposed to and develop risk management plans. 2. Financial planning: They will also have to plan their financial situation to ensure the necessary liquidity in the event of a crisis. 3. Collaboration with owners: Companies will need to work closely with their owners, who are often public bodies, to ensure security of energy supply. ### Tools available CAPTE-S has reiterated that the law on enforcement and bankruptcy provides sufficient tools to ensure the maintenance of the essential functions of a systemically important company for electricity even in the context of a bankruptcy or an arrangement procedure. This means that companies will be able to rely on these tools to ensure the continuity of their operations. ### Monitoring the situation Companies will need to closely monitor the energy market situation and take timely action in the event of a crisis. This could include the Source: tio.ch
Punti chiave
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Frequently Asked Questions
- What does the CAPTE-S decision mean for electricity companies?
- The decision of CAPTE-S means that systemically important electricity companies will have to assume the risks autonomously from 2027, without the financial support of the Confederation. This could lead to a greater focus on risk management and financial planning by companies.
- What are the implications of the decision for power company owners?
- The owners of electricity companies, which are often public bodies such as cantons or municipalities, will have to take responsibility for ensuring the security of energy supply. The Commission reiterated that public bodies that own businesses should not be allowed to shirk their responsibilities.
- How can utilities prepare for the end of state guarantees?
- Power companies can prepare for the end of state guarantees by conducting a thorough risk assessment, planning their financial situation, and working closely with their owners. They will also need to closely monitor the energy market situation and take timely action in the event of a crisis.