Swiss adopt EU target to cut power demand

Switzerland has adopted the European Union's target to cut power consumption but will not impose a windfall profits tax on utilities that use fossil fuels, its government said on Wednesday. From January to March 2023, power consumption during peak times is to fall by 5%. "It makes sense for Switzerland to voluntarily join the EU's electricity consumption reduction targets.

Switzerland has adopted the European Union's target to cut power consumption but will not impose a windfall profits tax on utilities that use fossil fuels, its government said on Wednesday. The cabinet said it would embrace on a voluntary basis the goal of reducing electricity consumption by 10% from January to March 2023 and in November and December 2023 compared to the average of the last five years. From January to March 2023, power consumption during peak times is to fall by 5%.

"It makes sense for Switzerland to voluntarily join the EU's electricity consumption reduction targets. This measure has a dampening effect on wholesale electricity prices. It also strengthens the security of supply," the government said. It will not adopt most other EU measures, such as a levy on surplus profits in the fossil fuel sector, it added, confirming its view from last month that no action was needed given the economic situation and lower inflation than in other countries.

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