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Deregulation of the Swiss Electricity Industry: Implication for the Hydropower Sector

Author

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  • Massimo Filippini

    (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

  • Silvia Banfi

    (Center for Energy Policy and Economics CEPE, Department of Management, Technology and Economics, ETH Zurich, Switzerland)

  • Cornelia Luchsinger

    (BKW FMB Energie AG, Viktoriaplatz 2, 3000 Bern 25, Switzerland)

Abstract

Although Switzerland is not a EU-member country, in December 1999 the Swiss Parliament adopted the new Swiss Electricity Market Law (EML). The EML laid the foundations for reforming the Swiss electricity industry by moving from regulation to deregulation. The Swiss population will vote on this issue in September 2002. If accepted, the deregulation process will be phased in gradually during a transitional period of seven years. This paper describes the Swiss electricity industry and shows how the federal structure leads to different regulation frameworks in each canton and municipality. Moreover, the paper sets out the most important characteristics of the law. In a second part, the paper focuses on the cost structure of the hydropower sector and gives an overview on the development of the production costs over the last decade. The paper shows that the cost structure of the producers has changed in the run-up to market deregulation. Further, the paper analyses the actual cost structure of the hydropower sector in Switzerland and shows the expected impact of the EML on the hydropower firms, especially on the competitiveness of the hydropower sector and on chances and dangers related to the deregulation of the electricity market.

Suggested Citation

  • Massimo Filippini & Silvia Banfi & Cornelia Luchsinger, 2002. "Deregulation of the Swiss Electricity Industry: Implication for the Hydropower Sector," CEPE Working paper series 02-13, CEPE Center for Energy Policy and Economics, ETH Zurich.
    • Handle: RePEc:cee:wpcepe:02-13
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    File URL: http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP13.pdf
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    Citations

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    Cited by:

    1. Reinhard Madlener & Stefan Vögtli, 2006. "Diffusion of bioenergy in urban areas: socio-economic analysis of the planned Swiss wood-fired cogeneration plant in Basel," CEPE Working paper series 06-53, CEPE Center for Energy Policy and Economics, ETH Zurich.
    2. van Ackere, Ann & Ochoa, Patricia, 2010. "Managing a hydro-energy reservoir: A policy approach," Energy Policy, Elsevier, vol. 38(11), pages 7299-7311, November.
    3. Madlener, Reinhard & Koller, Martin, 2007. "Economic and CO2 mitigation impacts of promoting biomass heating systems: An input-output study for Vorarlberg, Austria," Energy Policy, Elsevier, vol. 35(12), pages 6021-6035, December.
    4. Banfi, Silvia & Filippini, Massimo, 2010. "Resource rent taxation and benchmarking--A new perspective for the Swiss hydropower sector," Energy Policy, Elsevier, vol. 38(5), pages 2302-2308, May.
    5. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    6. Silvia Banfi & Massimo Filippini & Cornelia Luchsinger, 2004. "Resource Rent Taxation – A New Perspective for the (Swiss) Hydropower Sector," CEPE Working paper series 04-34, CEPE Center for Energy Policy and Economics, ETH Zurich.
    7. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2012. "Using a choice experiment to estimate the benefits of a reduction of externalities in urban areas with special focus on electrosmog," Applied Economics, Taylor & Francis Journals, vol. 44(3), pages 387-397, January.
    8. Reinhard Madlener & Carmenza Robledo & Bart Muys & Bo Hektor & Julije Domac, 2003. "A Sustainability Framework for Enhancing the Long-Term Success of LULUCF Projects," CEPE Working paper series 03-29, CEPE Center for Energy Policy and Economics, ETH Zurich.
    9. Silvia Banfi & Massimo Filippini & Andrea Horehájová, 2007. "Hedonic Price Functions for Zurich and Lugano with Special Focus on Electrosmog," CEPE Working paper series 07-57, CEPE Center for Energy Policy and Economics, ETH Zurich.
    10. Reinhard Madlener & Carlos Henggeler Antunes & Luis C. Dias, 2006. "Multi-Criteria versus Data Envelopment Analysis for Assessing the Performance of Biogas Plants," CEPE Working paper series 06-49, CEPE Center for Energy Policy and Economics, ETH Zurich.
    11. Kumbaroglu, Gürkan & Madlener, Reinhard & Demirel, Mustafa, 2008. "A real options evaluation model for the diffusion prospects of new renewable power generation technologies," Energy Economics, Elsevier, vol. 30(4), pages 1882-1908, July.
    12. Moret, Stefano & Babonneau, Frédéric & Bierlaire, Michel & Maréchal, François, 2020. "Overcapacity in European power systems: Analysis and robust optimization approach," Applied Energy, Elsevier, vol. 259(C).

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