Compared to other European countries, Switzerland – together with Germany – has some of the highest electricity prices. This significantly exacerbates the economic conditions for energy-intensive industries. At the same time, Steeltec AG makes an important contribution to the circular economy with its electricity-powered processing of steel scrap into high-quality special steels. Against this backdrop, the Federal Council decided on 7 March 2025 to approve a reduction in grid usage fees for strategically important companies in the energy-intensive iron, steel and aluminum production sector with retroactive effect from 1 January 2025.
After careful consideration, Steeltec AG, based in Emmenbrücke, has decided to make use of the possibility of such relief. Steeltec AG will submit a corresponding application to the Swiss Federal Office of Energy by the deadline of 31 May 2025.
This relief will enable Steeltec AG to benefit from a staggered reduction in grid utilization fees over four years – from 2025 to 2028. The agreed conditions, which will apply until the bridging aid expires, include maintaining the Swiss production site in Emmenbrücke, developing a net-zero roadmap by the end of 2025 for climate protection targets, innovation and strengthening energy security, as well as waiving variable remuneration for the members of the Executive Board and Board of Directors of Steeltec AG.
The reduction in grid utilization fees amounts to 50% in the first year, 37.5% in the second year, 25% in the third year and 12.5% in the fourth year. Steeltec AG expects financial savings of around CHF 17 million by 2028.
One of the conditions of the application is additional support from the canton in which the site is located totaling half of the total amount. The canton of Lucerne is currently reviewing this requirement.