Regime
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Water fee (WF)
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Fixed
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Current water fee level based on gross capacitya
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WF = 110 CHF/kWBr
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Flexible
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Flexible fee depending on reference market price (RMP)
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WF = 1.75 RMP/kWBr
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Tax on resource rent
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Tax of 38.7% on resource rent
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WF = 0.387(R − C)
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- Based on Swiss Federal Council (2017) and SFOE (2018a, b). kWBr stands for kW of gross capacity
- 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