Gas Supply: The Great Liberalization?

Article published by Gilles Robert-Nicoud, attorney at law, on November 10, 2025.

On September 19, 2025, the Federal Council launched a consultation on a new draft federal law on gas supply (LApGaz), which takes into account the criticisms made of the first draft. It is worth recalling that ComCo opened the gas market in principle in June 2020.

The law provides for a single balancing zone equivalent to the Swiss market zone, the establishment of an independent market zone operator (who will not own the transmission network), and a Federal Energy Commission (EnCom, the current ElCom whose duties will be expanded). Negotiated network access will be replaced by regulated access under the supervision of EnCom.

All end consumers, regardless of consumption volume, will have free choice of supplier. Network usage fees will be based on attributable costs plus an appropriate profit margin (WACC).

Given Switzerland’s climate objectives, network development plans must be primarily focused on decarbonization, which could lead to the decommissioning of networks in favor of district heating (CAD). These costs (extraordinary depreciation and dismantling costs) are to be borne by end consumers. The Federal Council suggests paying particular attention to informing consumers, coordinating with the development of CAD, and distributing costs over a reasonable number of clients. The risk is that dismantling costs may be borne by consumers who have no immediate alternative to gas supply.

A potential contradiction lies in giving end consumers the freedom to choose their gas supplier (while networks are gradually being decommissioned) and at the same time keeping them in a monopoly of CAD, which is not regulated and solely under the Price Supervisor’s authority. The Confederation has little authority in the area of heat networks. Ideally, LApGaz should therefore be accompanied by regulation of thermal networks, which is not currently planned.