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Swiss Steel to procure its electricity from Alpiq

As of 1 January 2014 steel producer Swiss Steel will procure its electricity from Alpiq under a multi-year supply contract concluded between the two companies. The steel producer will therefore switch from a basic service provider model to procurement on the open electricity market, where Alpiq offers attractive terms and conditions and greater flexibility.

Electricity prices are a major cost factor for large consumers. Alpiq offers customised supply models with transparent terms and conditions and a high level of flexibility in terms of adjusting forecasts. The multi-year supply contract between Alpiq AG and Swiss Steel AG, which will be valid as of 1 January 2014, is based on this principle. Since 2009, thanks to many years of experience in Europe's liberalised energy markets, Alpiq has also been offering flexible, tailored supply contracts at market conditions to Swiss industrial companies. By doing so Alpiq is contributing to strengthen Switzerland as a business location.

Swiss Steel AG, based in Emmenbrücke in the canton of Lucerne and a subsidiary of Schmolz+Bickenbach AG, consumes over 400 gigawatt hours of electricity a year and is one of the biggest industrial purchasers of electricity in Switzerland. The company is a centre of excellence for the production of high-grade steel for the automobile, machinery and equipment industry. In concluding this contract, the company is switching to the open electricity market so that it can benefit from more attractive terms and conditions.

The growing trend in Switzerland to switch from the basic service provider to the open electricity market is being driven by low prices on the European electricity exchanges. All companies with annual electricity consumption in excess of 100 megawatt hours (100,000 kWh) can switch to the open market.