Executive Summary
The Federal Department of Environment, Transport, Energy and Communications (UVEK) is lowering the WACC (Weighted Average Cost of Capital) for power grids in the tariff year 2027 to 3.28% – a decrease from 3.43% in 2026. This reduction in the average capital cost rate provides relief to electricity consumers of approximately 34 million francs. The determination was made following consultation with the Electricity Commission (ElCom) and applying a new calculation method that has been valid since March 2025.
Persons
- UVEK (Federal Department of Environment, Transport, Energy and Communications)
Topics
- Electricity prices and grid usage costs
- Capital cost rates (WACC)
- Energy supply and regulation
- Consumer protection
Clarus Lead
The UVEK is reducing the WACC for power grids in 2027 to 3.28%, thereby lowering grid usage costs by 34 million francs. This leads to direct price moderation for electricity customers. The decision is based on an updated calculation method and consultation with the ElCom, which has been binding since March 2025. The lower calculated interest rates for grid investments and existing infrastructure provide substantial relief to consumers.
Detailed Summary
WACC is a central regulatory parameter in the Swiss electricity sector. It determines the permitted return on capital invested in power grids as well as future investments in infrastructure renewal. Grid usage costs, which are influenced by this rate, are a significant component of the end-customer price for electricity – alongside energy procurement and distribution.
The new calculation method, anchored in the Electricity Supply Ordinance since March 1, 2025, leads to a more realistic representation of capital costs. The reduction from 3.43% to 3.28% reflects changed market conditions and financing costs. The resulting reduction in grid usage revenues of 34 million francs has an immediate price-moderating effect and improves the competitiveness of the Swiss electricity sector in a tight energy market.
Key Points
- The WACC for power grids falls to 3.28% in 2027 (2026: 3.43%)
- Electricity consumers benefit from relief of approximately 34 million francs
- New calculation method since March 2025 enables more realistic cost determination
- Grid usage costs are a direct lever for electricity price setting
Critical Questions
Data Quality & Validity: On which market data and interest rates is the new calculation method based? How was comparability with international regulatory standards verified?
Conflicts of Interest: Which stakeholders (grid operators, energy suppliers, consumer associations) were included in the consultation, and how were diverging positions weighted?
Causality & Alternatives: To what extent is the reduction attributable to changed financing costs or to regulatory reassessment of risk premiums? Which scenarios were analyzed?
Feasibility & Risks: How do grid operators ensure that the lower calculated interest rates are sufficient to finance necessary grid investments (e.g., for digitalization, decarbonization)? Is there investment pressure?
Transparency: Are the detailed calculation steps and assumptions of the new method published to ensure traceability?
Distributive Impact: Do all customer groups benefit equally from the 34-million-franc relief, or are there regional or categorical differences?
Sources
Primary Source: UVEK sets WACC for power grids for tariff year 2027 – news.admin.ch, March 2, 2026
Verification Status: ✓ March 2, 2026
This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-checking: March 2, 2026