The National Energy Commission has decided to exempt Swiss entities of strategic importance from certain taxes.
Strategically important Swiss companies in the production of steel and aluminum are to benefit from lower electricity prices. The National Energy Commission decided, by 13 votes to 11 and 1 abstention, to exempt them from certain taxes.
Federal support for the Swiss steel industry has been debated in recent months. Last week, the Committee on Economy and Fees of the Council of States called for rapid measures to be taken, given the financial difficulties of the Solothurn steelworks Stahl Gerlafingen. The latter announced in March the closure of one of its two production lines and the elimination of 95 jobs, in particular due to blockages with the EU for exports.
The National Energy Commission, for its part, wishes to act on electricity prices. While production sites in Switzerland are threatened, these companies, with their recycling capacities, are of capital importance for the circular economy in Switzerland, she said in a press release on Tuesday. They make it possible to produce, with a small ecological footprint, raw materials for essential sectors in the country.
Thus, foundries whose annual production exceeds 20,000 tonnes of metal originating mainly from recycled materials must be exempt for four years from part of the taxes collected for the use of the electricity network.
Concretely, network use taxes must be reduced by 50% in the first year, by 37.5% in the second year, by 25% in the third year and by 12.5% in the fourth year, specifies the commission. This reduction is financed by Swissgrid, the national company responsible for the electricity transmission network, and therefore, in solidarity, by all electricity consumers in the country.
Under certain conditions
This exemption is, however, subject to certain conditions. Companies must guarantee the maintenance of their production site in Switzerland. They must also commit to making sustainable investments, renounce paying dividends and be able to provide information on their economic situation. They must provide the corresponding guarantees and reimburse the subsidies if they do not respect these conditions.
A minority rejects any support measure. In his eyes, in the long term, it is always advantageous for Switzerland not to pursue a policy in favor of certain branches and companies. In the current situation, she sees no reason to deviate from this principle. Furthermore, she doubts that the measure will resolve the structural problems of the companies concerned and that it will really and decisively contribute to the sustainability of production sites in Switzerland.
Reserve linked to reduced consumption
The decision was taken as part of a project to enshrine the electricity reserve in law. This project was approved by 21 votes to 0 with 3 abstentions.
In detail, the commission unanimously proposes creating a reserve linked to a reduction in consumption by means of market instruments. Specific contracts between electricity suppliers and large consumers must provide that the consumer cannot or must no longer draw electricity when electricity prices reach a certain threshold.
Thus, if the price of electricity increases in a shortage situation, consumption falls, which unloads the system without the Confederation having to intervene, explains the commission. Consumers are compensated.
This reserve linked to a reduction in consumption is a “central element” for the commission: it has no negative consequences on the environment and its costs are very low.
The commission made further changes to the project. These aim to prevent the costs of electricity reserves from burdening companies with high energy consumption too heavily, to ensure that thermal installations are operated if possible with climate-neutral fuels or to exploit the potential of existing emergency generators.
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