Elements of the Swiss market for electricity

Más información sobre el libro

This research analyzes two key aspects of the Swiss electricity market: residential electricity demand by time-of-use and the cost structure of municipal electricity distribution utilities. The findings on demand and cost elasticities facilitate the exploration of significant economic and policy issues, including the potential benefits of implementing time-of-use pricing for residential customers and the implications of competition in electricity distribution. The study also examines the economic impacts of reduced load factors and mergers among electric distribution utilities on costs. In recent years, Switzerland has seen a growing debate over electricity rate reforms aimed at enhancing efficiency in electricity use, sparked by two major events: a notable increase in electricity consumption and public concern following the Chernobyl accident in 1986. This led to a 1991 referendum where Swiss voters approved a ten-year moratorium on new nuclear power plants. Additionally, plans to expand hydroelectric power production have faced strong opposition from environmental groups. Consequently, these factors have limited the expansion of domestic electricity supply, forcing Switzerland to import electricity during winter months.