Energy Policy This is how Axpo positions itself on energy policy issues

The proposed amendment to the regulation and adjustment to the management fee are not comprehensible. The effects of Swissgrid's new single-price mechanism for balancing energy are not yet foreseeable. Even under the new mechanism, the risk for all plant operators that balancing energy costs will exceed revenues cannot be ruled out.

Axpo welcomes the draft Gas Supply Act. However, in order to ensure competition, the bill needs to be amended in certain areas. The requirement to install a smart meter as a prerequisite for network access must be waived, and the storage obligation must be assigned to the market area coordinator.

Axpo welcomes the quick implementation of a more market-oriented minimum remuneration for small PV systems. However, the relevant reference market price should be determined on an annual basis in order to provide the right incentives for feeding-in. In addition, minimum remuneration should be waived in periods of negative market prices.

The electricity agreement between Switzerland and the EU aims to secure access to the European electricity market and enhance Switzerland's energy supply security. Axpo supports the agreement. However, numerous "Swiss finishes," where domestic regulations go significantly beyond the agreement, appear counterproductive.

With the amendment to the Energy Promotion Ordinance and the Energy Ordinance, the federal government plans to reduce the maximum contributions for the promotion of PV systems and to limit the compensation for ecological refurbishment measures at marginal power plants to the Swiss sovereign share. Axpo is of the opinion that these adjustments are not in line with the legislator's intentions and ultimately run counter to the energy policy objectives.

Axpo can understand the extension of the temporary FiREG (Federal Act on Subsidiary Financial Aid for the Rescue of System-Critical Companies in the Electricity Industry) in principle. However, the situation is different today due to adapted hedging strategies, new energy market rules and reduced volatility. The provision of a commitment credit in the amount of CHF 10 billion is therefore clearly too high. In addition, the calculation of the provision fee should be based on the market interest rate, the scope of application should be broadened and data queries should be limited to the actual purpose of the law.

Axpo welcomes the present amendment to the Ordinance on the Planning Approval Procedure in view of the necessary expansion of the electricity grids. However, the provisions should neither bring about significant changes nor lead to the desired speeding up of procedures in the grid sector.

The proposed measures represent a serious encroachment on constitutional rights. In the event of a severe electricity shortage, they can be justified - in return for full compensation. However, the compensation provided for in the draft on the basis of production costs does not appear to be constitutional.

Axpo welcomes the Federal Council's indirect counter-proposal and supports the postulated principle of technology neutrality. Lifting the ban on new build does not mean that new nuclear power plants will necessarily be built. However, at least it allows for a constructive debate on the possibility of new nuclear power plants and their inclusion in possible scenarios.

Axpo rejects the paradigm shifts associated with the planned amendments to the ordinance for fundamental reasons. A premature call-up of reserve power plants leads to a distortion of the market, while Swissgrid's activities in the areas of electricity generation, distribution and trading or its participation in electricity suppliers contradict the unbundling of the transmission grid and thus the central principle of the liberalized electricity market.