- Alpiq got into financial difficulties due to the sharp rise in energy prices internationally.
- The second largest electricity company in Switzerland threatened to run out of money before Christmas.
- But now the shareholders are helping Alpiq with a three-digit million amount.
Energy markets are out of balance because of high demand in Asia, political tensions between Russia and the EU and French nuclear power plant failures. The consequences are significantly higher prices for electricity and gas. This got Alpiq into a tight spot. Because the company sells electricity in advance, long before it is produced – and then has to buy it if suddenly not enough is available.
Alpiq therefore had to buy electricity at high prices in order to fulfill supply contracts – also because the Leibstadt nuclear power plant was out of action for longer than planned. The situation before Christmas was acute. Alpiq even applied for state aid. However, the request was withdrawn.
The situation is likely to remain tense
First of all, the group’s shareholders are providing a financial buffer. They are temporarily providing Alpiq with liquidity of CHF 223 million. An increase to 300 million is under discussion. In addition, Alpiq agreed additional credit and guarantee lines with its banks.
This will make the group more resilient, Alpiq announced at its headquarters in Lausanne. That is also necessary. The situation on the energy markets is likely to remain tense for some time to come.