The Federal Council of Switzerland has approved new bilateral agreements with the European Union (EU), seeking to stabilise and develop Switzerland's bilateral approach with the EU. The bilateral agreements include new single market agreements on electricity (including institutional elements and state aid).
This electricity agreement aims at strengthening security of supply, guaranteeing to all market participants equal market access to both the EU and the Swiss electricity markets, and fostering cross-border electricity trade, ensuring the stability of the regional electricity network and of the connection of the Swiss electricity system into the interconnected system of the Union. It also aims at guaranteeing the integrity and transparency of the wholesale electricity market, raising the share of renewable power generation and facilitate the transition to a net zero GHG energy system in Europe by 2050. Implementing the electricity agreement is expected to lower electricity prices, which should be 14% lower with the new electricity agreement in 2050, compared to a scenario without an agreement.
The Federal Council has opened a consultation process that will last until 31 October 2025. These agreements were initialled in late May 2025 and their implementation will require amendments to 32 Swiss laws as well as the creation of three new laws.
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