The electricity agreement with the EU put to the test by its national implementation

Since its official conclusion a year ago, the electricity agreement between Switzerland and the European Union has remained at the heart of debates in the energy sector. To recap briefly, early tensions soon emerged around certain clauses, notably the one concerning market liberalization.

The opening of the market to all consumers has raised several concerns regarding the protection of households, producers and local distribution companies (GRD). According to some parties and unions, this measure risks leading to underinvestment in future production capacities as well as excessive speculation on the electricity market.

Despite these reservations, the agreement received a favorable reception from the main actors in the industry. "The agreement allows consumers to freely choose their electricity supplier, promotes competition and innovation, and strengthens the integration of renewable energies as well as decentralized flexibilities such as storage," the Swiss Association of Electricity Companies (AES) recalls in a statement published a few days ago.

Going so far as to describe the text as "a major success in terms of negotiations," Alpiq mainly reminds that Switzerland is not an island: "We are integrated into Europe economically, in terms of labor market policy, but also in energy and physical terms. Only an agreement will make it possible to fully take advantage of the benefits of this interconnection."

Contested implementation

If, in principle, the agreement very clearly obtains the asserted support of the industry, its national implementation, however, raises more reservations. The AES considers it too complex and contrary to the objective of market liberalization. At the heart of its criticisms: the question of basic supply.

The association deplores an implementation of basic supply that relies almost entirely on the new Electricity Act, which in its view contains unnecessarily strict requirements regarding the origin of energy. These requirements would be an obstacle to the creation of a true fair alternative to open market products. "The constraints imposed on basic supply providers must be considerably relaxed," it insists.

"In its current form, the proposal leads to an increase in costs and risks," warns Michael Frank, director of the AES.

On Alpiq's side, the assessment is similar. In addition to sharing the AES's position on basic supply, the energy producer regrets the maintenance of a mandatory reserve of hydroelectric energy, which it considers a competitive disadvantage for Swiss operators in the European context. The company also calls for a revision of the rules governing working conditions, arguing that their monitoring risks resulting in a superfluous "Swiss finish" and is likely to lead to a disproportionate administrative burden.

The same tune at the Swiss Energy Foundation (SES), which advocates targeted adjustments to protect national production and ensure compliance with environmental standards. "We support the electricity agreement, provided that the ecological transition of the energy system is supported in a targeted manner. Only substantial adaptations will allow the agreement to remain effective in the long term in terms of energy and climate policy and to secure a political majority," says Léonore Hälg, head of the Renewable Energies and Climate sector at the SES.

Next steps

"In its current form, the proposal leads to an increase in costs and risks. For the electricity sector, the proposed national implementation would be more complex, more costly and less attractive," warns Michael Frank, director of the AES. "Under these conditions, its implementation is not acceptable," he insists.

Questioned about the disagreements that have arisen in recent days, the Federal Department of the Environment, Transport, Energy and Communications (DETEC) simply replied that it will analyze the positions of all stakeholders. "But in the end, it is Parliament and the Federal Council who will decide on any adjustments to the electricity agreement with the EU," emphasizes a DETEC spokesperson.

On the political level, it should be remembered that the process has only just begun and that patience will be required. As part of the "Bilateral Agreements III" negotiation package, the agreement is currently in consultation until the end of October. "The final message should be submitted to Parliament in spring 2026. In the event of a referendum, the text would then be subject to a popular vote," Alexandre Fasel, State Secretary at the Federal Department of Foreign Affairs and coordinator of negotiations with the European Union, specifies on the UNIGE website.

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