Donald Trump’s war is also driving up electricity prices in Switzerland.Image: keystone
When it comes to gas, there is a bidding war between Asia and Europe. Switzerland is also feeling this – and not just when it comes to heating.
04/10/2026, 09:59April 10, 2026, 10:00 a.m
Benjamin Rosch / ch media
Germany is groaning: The prices for electricity are four times more expensive than in neighboring France, according to the headlines of several major newspapers last week. Aside from the fact that such comparisons are difficult because the parameters change every quarter of an hour, electricity market prices have also risen in Switzerland. Donald Trump, Italy and the complicated mechanisms of international electricity trading are to blame for this.
The so-called merit order applies to this. In European countries, the various power plants are used in the order of their variable costs. Renewable energies, i.e. electricity from wind and sun, are the cheapest – almost free. This is followed by hydropower and nuclear energy and then by thermal power plants, powered by coal, gas and oil. The price for the electricity is set by the power plant that is switched on last to meet demand.
You can imagine it like a bakery with different ovens. One of them is new, large and very efficient. It is enough for normal needs. However, if there are a lot of customers, the bakery has to use an older oven – and at peak times even a small emergency oven. The price of a croissant is determined by the most expensive oven, which is just needed to cover general demand. And not an average price. In business administration this is called marginal costs.
The Ras Laffan facility in Qatar was bombed.Image: keystone
Bottleneck Middle East – with consequences for the global market
In the case of electricity trading, this bakery is currently located in Italy. Switzerland’s southern neighbor obtains a large part of its energy needs from gas power plants, especially in winter – well over 50 percent at peak times. “Due to the increased gas prices, these power plants are currently producing their electricity significantly more expensively than just a few months ago,” says a spokeswoman for the Federal Electricity Commission Elcom. One reason for this is US President Donald Trump’s attack on Iran.
The Middle East is one of the key suppliers of natural gas. Qatar, as one of the most important producers of liquefied natural gas (LNG), has temporarily almost stopped its operations. Attacks on energy infrastructure have further exacerbated the situation. A fifth of global gas and oil traffic normally passes through the Strait of Hormuz. Due to the blockage of this trade route, there is a shortage on the international gas market – and this is driving up the price. In Europe, short-term gas prices rose by 30 to 60 percent in some cases. The continent currently relies primarily on the USA. This could lead to a bidding war between Europe and Asia.
This will be a challenge, especially next winter: “The filling levels of the European gas storage facilities are currently around 11 percentage points below the long-term average,” says the ElCom spokeswoman. But the market distortions are also making themselves felt here and now – and not just at the pump. Switzerland itself does not have any thermal power plants (so far) – apart from the reserve power plants, for example in Birr. So why is the price of electricity rising in this country too?
Fire in the Iranian capital Tehran.Image: keystone
This is due to the interconnections of the international energy markets. In these, Switzerland plays no role as a price setter: in addition to renewables, the Swiss “peak furnaces” are the remaining nuclear power plants and the storage lakes. Both have marginal costs that are too low to have an impact on the price of electricity. “Because Switzerland is closely linked to foreign countries, this usually defines the market price in Switzerland,” says the ElCom spokeswoman.
In winter this is usually Italy, which mainly imports electricity from France via Switzerland. There is usually enough electricity there, at least when the nuclear power plants are running. The fact that Spain and Portugal provide a lot of cheap solar and wind energy also has a price-lowering effect.
For Switzerland, prices represent risk and opportunity
Switzerland, which is also dependent on winter imports, also benefits from this market situation. In the last cold period, this was around 7 terawatt hours net due to the failure of the Gösgen nuclear power plant. Due to lower domestic production, less was exported to Italy. This meant that the border capacities between Switzerland and Italy were not always fully utilized, which meant that Swiss prices were more often based on the high levels in Italy. A large part of the import flow flows directly to the neighboring country, which has so far been poorly connected to other countries outside of Switzerland.
The current price fluctuations can certainly represent a risk for Switzerland. Especially for those large customers who need to stock up on energy at short notice. On the other hand, business beckons: As a hub between cheap France and expensive Italy, Swiss energy suppliers stand to make profits, especially if electricity prices in Switzerland rise. For private customers who do not participate in the liberal market, the high daily price fluctuations do not necessarily have to mean negative things – especially since the utility companies usually stock up in advance.
The same applies to Swiss gas suppliers. Here too, the risk depends on how long the war in the Middle East lasts. And above all from one person: Donald Trump.