Skip to main content

Table 3 Water fee regimes

From: The future of Swiss hydropower: how to distribute the risk and the profits?

Regime Water fee (WF)
Fixed Current water fee level based on gross capacitya WF = 110 CHF/kWBr
Flexible Flexible fee depending on reference market price (RMP) WF = 1.75 RMP/kWBr
Tax on resource rent Tax of 38.7% on resource rent WF = 0.387(R − C)
  1. Based on Swiss Federal Council (2017) and SFOE (2018a, b). kWBr stands for kW of gross capacity
  2. aThe maximum water fee level allowed by federal regulation is set at 110 CHF/kWBr. Only the cantons of Bern, Jura, Zug, and Vaud stayed below this tax level (Swiss Federal Council, 2018). For our analysis, we use the observed water fee payments in 2015/16. As the flexible water fee payments are calculated in relation to observed payments, we assume that these cantons continue to have a relatively lower tax level