Ethanol: Switzerland intends to build up compulsory stocks
As a result of the current pandemic experience, the Federal Council wants to provide the country with sufficient stocks of alcohol for medical use as until 2018
As a result of the experiences during the COVID-19 pandemic, the Federal Council wishes to build mandatory ethanol stocks based on the country’s supply law.
Verordnung über die Pflichtlagerhaltung von Ethanol
Erläuternder Bericht zur Eröffnung des Vernehmlassungsverfahrens
Consultation on the new mandatory ethanol stockpile ordinance opened on March 19, 2021, and will run through June 29, 2021. It is scheduled to go into effect in early 2022.
Until 2018, Alcosuisse had maintained ethanol stocks that allowed for about three months of normal national needs.
Changes since the privatization of Alcosuisse
The sale and privatization of Alcosuisse resulted in the end of the buildup of these stocks.
However, the COVID-19 pandemic has highlighted the extreme importance of a steady supply of ethanol.
As a result, the Federal Council is proposing to build mandatory stocks as required by the National Supply Act.
Ordonnance sur le stockage obligatoire d’éthanol
Rapport explicatif relatif à l’ouverture de la procédure de consultation
All stakeholders will be involved in stockpiling. In this way, competition between market players will be maintained.
According to the draft ordinance now under consultation, companies which import, produce, process or market denatured or undenatured ethanol for the first time on Swiss territory must build up compulsory stocks.
The only exception is for the use of fuels.
The only exception is ethanol used as a fuel or for the manufacture of fuels. The requirement to stockpile arises only if more than 1,000 pounds of goods are sold per calendar year.
The two types of ethanol indicated are suitable for almost all uses essential to the economic supply of the country.
Ordinanza concernente la costituzione di scorte obbligatorie di etanolo (Italian)
Rapporto esplicativo sull’apertura della procedura di consultazione (Italian)
The production of disinfectants, medicines and – to a certain extent – foodstuffs, as well as the overall needs of the health sector and the chemical industry, are classified as systemically important.
The determination of the volume of compulsory stocks, which is the responsibility of the Federal Department of Economic Affairs, Education and Research (EAER), is based on the current structure of the ethanol market in Switzerland and the priority uses of the stored ethanol.
