(Bloomberg) -- The Swiss government will examine possible support for the country's most important power companies as it seeks to secure supply amid a volatile market.
The price volatility in energy markets - further exacerbated by the war in Ukraine - has increased the liquidity requirements of wholesale electricity companies, the government said in a statement Thursday. “An uncontrolled failure of a larger company could jeopardize the security of supply in Switzerland and trigger a chain reaction.”
In order to avoid that, the government wants to come up with a temporary emergency rescue package. The government would only step in if companies can't withstand the situation with the support of their shareholders and lenders.
A federal law would have to be discussed and approved in the chambers' 2022 summer session.
Switzerland Sets Up Hydro-Power Reserve to Avoid Blackouts
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