Management fee

Commissioned by SFOE

Ingmar Schlecht, Vlada Maksimova, Alexander Neef

2025

Switzerland’s TSO Swissgrid will move from a two-price to a single-price imbalance settlement in 2026. The previous formula for the variable part of the management fee for renewables in direct marketing, based on the spread between short and long prices, would structurally yield zero under the new regime. For the Swiss Federal Office of Energy, we analyzed technology-specific balancing costs under single pricing and developed a transparent new methodology: no variable fee for hydro, biomass, waste, and wind, whose imbalances tend to support the system, and an empirically derived quarterly fee for solar. This report was originally published in German.