Navigating Swiss Energy Market Liberalisation: Why Large Companies Must Act Now

Switzerland at the Threshold of Market Transformation

Switzerland stands at the threshold of a historic transformation in its energy sector. The government and the European Union are moving toward a comprehensive agreement to fully liberalise the country’s electricity market, integrating it with the EU’s internal electricity market. This transition, expected to be finalised in the coming years, will enable all consumers, including large enterprises, to freely choose their electricity supplier. The era of regulated monopolies is ending, making way for increased competition, innovation, and cross-border trading.

For large companies, this shift is not just a regulatory change but a strategic turning point. The new market landscape offers both significant opportunities and complex risks in procurement, pricing, compliance, and sustainability. Those who prepare proactively will gain a competitive edge, while those who hesitate may face higher costs, operational disruptions, and missed opportunities.

The Drivers and Implications of Market Liberalisation

Liberalisation is driven by Switzerland’s desire to integrate with the EU’s energy system, ensuring access to cross-border trading and improved security of supply. The process will dismantle existing monopolies, allowing all customers to choose their supplier, which fosters competition, transparency, and innovation. By aligning with EU rules and market mechanisms, Switzerland aims to enhance grid stability, crisis preparedness, and the expansion of renewable energy sources.

For large companies, supplier choice will expand dramatically, allowing access to a broader pool of suppliers both domestically and internationally. This expansion enables better negotiation terms and risk diversification. However, exposure to market-driven pricing will increase, making energy costs more dynamic and potentially more volatile. Regulatory complexity will also rise, with new laws such as the Swiss REMIT, aligned with EU REMIT, introducing stricter reporting, transparency, and compliance requirements for all market participants. Additionally, liberalisation does not guarantee sustainability; companies will need to proactively seek green solutions to meet decarbonisation and ESG goals.

The Strategic Imperatives for Large Companies

Large companies must rethink their energy procurement strategies. With more supplier options, it becomes essential to develop robust frameworks for assessing supplier reliability, financial health, and service quality. Flexible, risk-adjusted contracts are crucial as price volatility increases, requiring expertise in structuring deals that hedge against market swings. Data-driven decision making, leveraging analytics to forecast consumption, model price scenarios, and optimise procurement strategies, will distinguish market leaders.

Strengthening risk management is also vital. The end of fixed, regulated prices means companies must actively manage exposure to price fluctuations, using financial instruments and risk management tools. Market volatility can strain liquidity and credit lines, especially during periods of price spikes or supply shocks, making robust financial planning and risk transfer mechanisms essential. New obligations under Swiss REMIT and related frameworks demand enhanced reporting, monitoring, and internal controls to avoid penalties and reputational risk.

Operational continuity must be ensured as the market opens, since the risk of supply disruptions, especially during crises, may increase. Companies need contingency plans and diversified procurement channels. Transitioning to new suppliers or integrating renewable energy sources may require upgrades in infrastructure, metering, and IT systems.

Advancing sustainability and ESG goals is another imperative. Liberalisation enables companies to choose suppliers that offer renewable energy products, but this requires active engagement and due diligence. Investors and stakeholders are increasingly demanding transparent reporting on sustainability performance, making it imperative to align procurement with ESG objectives.

Why Callonexis’s Services Are Essential in the New Market

Callonexis offers comprehensive solutions that support clients from supplier selection and contract negotiation to ongoing management, leveraging deep market expertise and advanced analytics to secure the best terms, optimise costs, and ensure reliability in a more complex and competitive environment. Our advanced risk management services include dynamic hedging tools that enable companies to hedge against price volatility and regulatory changes, safeguarding margins and protecting against unforeseen shocks. Real-time monitoring, through continuous data collection and reporting, empowers clients to make informed decisions and adapt swiftly to market shifts, reducing exposure to adverse events.

Callonexis’s flexible service model eliminates the burden of capital investment and operational complexity, particularly for companies transitioning to renewable energy or electrified fleets. We also support clients in meeting decarbonisation and ESG targets through tailored renewable energy solutions and strategic advisory, helping them stand out in a market where sustainability is increasingly a differentiator.

Why a Chief Procurement Officer Should Choose Callonexis

For chief procurement officers, Callonexis provides clear advantages in navigating the new market. Expert supplier vetting, negotiation, and contract management simplify the process of choosing and working with suppliers. Advanced hedging and risk analytics are tailored for large energy users, ensuring robust protection against price swings. SLA-backed infrastructure, proactive maintenance, and real-time support guarantee operational reliability. Integrated renewable solutions and ESG advisory help companies achieve their sustainability targets, while our full-service model frees internal teams to focus on core business priorities.

Case Example: The Value of Proactive Energy Strategy

Recent market turmoil in Europe and Switzerland has demonstrated that companies with robust procurement strategies and risk management frameworks were able to weather price shocks far better than those relying on short-term contracts or passive approaches. Those who secured favourable terms ahead of market spikes protected their margins, while others faced soaring costs and liquidity challenges. The lesson is clear: in a liberalised market, proactive management is not optional—it is essential.

Turning Market Complexity into Competitive Advantage

Swiss energy market liberalisation is not just a regulatory event but a catalyst for strategic transformation. Large companies that act now to build agile, data-driven, and resilient energy strategies will be best positioned to thrive. By partnering with Callonexis, enterprises can turn market complexity into a source of competitive advantage—optimising costs, managing risks, advancing sustainability, and ensuring operational excellence in a new era of energy competition.