FluxSwiss’ position on the draft gas supply law (GasVG)
The regulation of gas transit should seek to ensure advantages for consumers and enhanced supply security in SwitzerlandFluxSwiss manages the majority of gas transit capacity through Switzerland. FluxSwiss is not active in gas trading itself or in the domestic Swiss market, but only sells the transit capacities of the Transitgas pipeline to international gas transporters. To this end, FluxSwiss has leased 90 percent of the pipeline capacity from Transitgas AG on a long term basis. The remaining 10 percent is reserved for Swiss gas supply.
The enactment of the Gas Supply Act (GasVG) in the current version would make the efficient management of gas transit difficult and transfer costs and risks of transit utilisation to Swiss consumers. Last but not least, for Swiss investors at FluxSwiss including numerous pension funds, this would mean a substantial devaluation of their investments.
FluxSwiss therefore rejects the current regulatory proposal for transit and instead proposes an alternative market model that ensures that the transit through Switzerland is regulated to be Europe-compatible, as required by the Federal Council, and makes an additional contribution to Switzerland's security of supply.
With its statement on the draft GasVG, FluxSwiss wants to ensure that ...
... no risks and costs linked to transit are transferred to Swiss consumers: the demand for transit capacities fluctuates strongly and there is no secured base load in the transit business. Revenues to cover costs can only be achieved through entrepreneurial flexibility. With this, FluxSwiss and foreign customers of FluxSwiss bear 90 percent of the risk of the pipeline costs. If the existing set-up was to be abruptly changed, Swiss consumers would have to assume these risks and costs, since the uncovered costs of the transit would be passed on to the domestic market.
... there is no nationalisation of an efficient competitive business: the international transit of gas through Switzerland is now fully exposed to the market and - in contrast to the domestic gas market - there is no monopoly but there is competition with other transport routes, mainly serving the Italian market. Where there is no monopoly, no unnecessary regulatory intervention should be necessary. The GasVG should therefore not destroy the efficiency of business entrepreneurship.
... no material expropriation takes place: the consultation proposal provides for FluxSwiss to withdraw from its current activity as it should no longer be responsible for the marketing of its transit capacity. FluxSwiss would remain with the sole “bare ownership” of the pipeline. This would be a material expropriation of FluxSwiss’ shareholders, which includes numerous Swiss pension funds. FluxSwiss is therefore resisting the fact that a market area manager on the domestic and transit market should now be responsible for the management of all capacities and congestions, plus the definition of network tariffs.
See the detailed response to the GasVG consultation