Tariff and product structures

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Tariff components

The electricity price is made up of five components:

• Network usage tariff

  Price for transmission of electricity from the power plant to the premises via the supply network. This is calculated based on the network costs, i.e. the costs for its construction, maintenance and operation. The network usage tariff also includes the costs for the winter reserve and meter-reading. From 2026, this component will be indicated as a separate metering tariff.

• Metering tariff (from 2026)

  From the 2026 tariff year, metering costs must be recorded and charged separately from network costs. Metering costs are charged through separate metering tariffs, and these may vary depending on the size of the connection. They are charged at a flat rate per month or per year, per metering point (bidirectional measurements constitute one metering point).

• Energy tariff

  Price for the power supplied. The network operator either generates this energy by using its own power plants or purchases it from suppliers.

• Fees and payments to the state

  Communal and cantonal fees and charges. These include, for example, licence fees and local energy charges.

• Network surcharge

  Federal charge levied to promote renewable energies, support large-scale hydropower plants and renovate hydropower plants for environmental purposes. The Federal Council sets the level of this charge annually.

Network operators’ obligations

The obligations of the network operators are governed by the Electricity Supply Act (ESA) and the Energy Act (EnA). Under the ESA, they include the duty to connect end users and electricity producers (Art. 5 para. 2 ESA) and the duty to supply end users under basic supply (Art. 6 para. 1 ESA). Network operators are also obliged to guarantee the provision of a safe, high-performance and efficient network (Art. 8 para. 1 let. a ESA). The EnA requires network operators to meet purchase and remuneration obligations for electricity produced from renewable energy (Art. 15 para. 1 EnA).

Tariff-setting by the network operators

Network operators are also responsible for setting tariffs. They are granted great leeway under the relevant legislation provided the criteria on tariff-setting set out in Art. 14 ESA and Art. 18 of the Electricity Supply Ordinance (ESO) are complied with: network usage tariffs must have a simple structure and reflect the costs attributable to end users (Art. 14 para. 3 let. a ESA).

Various ways of structuring tariffs

Various network operators apply what are known as ‘two-tier tariffs’, i.e. tariff structures that vary over the course of the day. Higher or lower tariffs may apply, depending on the time of day the electricity is used. This type of tariff structure primarily aims to ensure effective distribution of the network load to avoid the need to expand network capacity due to peak loads. However, many network operators do not use two-tier tariffs and apply only uniform tariffs. There are no legislative provisions on whether network operators should apply uniform or two-tier tariffs. Network operators may also use other tariff models, including dynamic tariffs and other models that improve network performance.

From the 2026 tariff year, network operators may specify the following tariff models for end users under basic supply, in addition to the existing basic customer group tariff:

• A tariff with a flat-rate energy component (centimes per kWh) that accounts for at least 70% of total costs.
• A dynamic tariff as the standard option, based on next-day network load values. Operators must also offer an optional tariff that corresponds to the existing basic customer group tariff.
• A time-variable capacity tariff as the standard option, comprising a flat-rate energy component (centimes per kWh) of at least 50%, and a variable capacity component (centimes per kW) based on network load values, with at least four different values per day. The capacity component must be set in advance for the entire year.

End users under basic supply without a smart meter will continue to be offered the existing basic customer group tariff, with a flat-rate energy component of at least 70%.