National Council debates aid for steel and aluminum industry
Published: Tuesday, Dec 10th 2024, 05:40
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On Tuesday morning, the National Council will discuss a legal basis for the creation of an electricity reserve. However, the focus is likely to be on bridging aid for the struggling steel and aluminum industry.
The Federal Council's original aim in proposing amendments to the Electricity Supply Act is to establish an electricity reserve. This is intended to guarantee security of supply and minimize the impact on the environment and climate as well as the costs for electricity consumers.
The Federal Council's proposal is largely undisputed. The majority of the responsible Environment, Spatial Planning and Energy Committee (Urek-N) emphasized in advance that a secure power supply is of crucial importance for Switzerland, even in extreme situations. A reserve outside of the electricity market is therefore to be welcomed.
Several conditions
More controversial are proposals that the Urek-N has also included in the bill. According to these proposals, "strategically important companies" in steel and aluminum production are to receive financial relief under certain conditions. Specifically, they are to be exempted from part of the fees for using the electricity grid for four years.
Stahl Gerlafingen, Swiss Steel in Emmenbrücke and the Valais aluminum foundry Novelis were mentioned in media reports on the support plans. The measures will make it possible to support these companies, said Commission President Christian Imark (SVP/SO) at the request of the Keystone-SDA news agency.
However, this is not a sure-fire success. Because there are conditions. Companies are not allowed to pay out dividends. They also have to provide guarantees as security. If they do not comply with the conditions, they will have to pay back the subsidies.
Demands on the Federal Council
However, a strong minority of the Urek-N opposes the support. It has always been advantageous not to make policy for individual sectors and companies, it believes. The current difficult situation in steel and aluminum production is no reason to deviate from this principle.
The Council of States will also deal with the steel industry in the current session. It is debating motions calling on the Federal Council to take measures to maintain steel production in Switzerland.
The state government had previously rejected state support for individual companies or sectors. Stahl Gerlafingen in the canton of Solothurn is awaiting the political decisions at federal level and has decided not to cut 120 jobs for the time being.
©Keystone/SDA
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