LEG vs. Traditional Utility: All Differences Explained
LEG vs. Traditional Utility: All Differences Explained
Complete comparison between Local Energy Communities (LEG) and traditional utility providers in Switzerland. Learn which option is better for you.
The energy landscape in Switzerland is changing rapidly. While traditional utility providers were the only option for decades, Local Energy Communities (LEGs) now offer an innovative alternative. But what exactly are the differences? Which option is better suited for you?
In this comprehensive comparison, you'll learn all the important differences between LEGs and traditional utility providers – from costs to sustainability to control over your energy supply.
Overview: LEG vs. Utility Provider
Local Energy Community (LEG)
An LEG is a community of people who collectively produce, consume, and share renewable energy. Members have direct influence on the energy source and price.
Traditional Utility Provider
A utility provider is a company that generates or purchases energy and sells it to end customers. Customers draw energy from the public grid but have little control over origin and price.
Key Differences in Detail
1. Energy Source and Sustainability
LEG:
✅ 100% renewable energy: Energy comes from local solar, wind, or hydroelectric facilities
✅ Local and transparent: You know exactly where your energy comes from
✅ Direct contribution to energy transition: Support for Switzerland's Energy Strategy 2050
✅ CO2 savings: Typically 10-50 tons CO2 per year per LEG
Utility Provider:
⚠️ Mixed energy sources: Often mix of renewable and fossil/nuclear energy
⚠️ Opaque origin: Difficult to trace where energy comes from
⚠️ Limited influence: Little ability to influence energy composition
⚠️ Higher CO2 emissions: Dependent on provider's energy mix
2. Cost Structure and Prices
LEG:
Transparent prices: All costs are visible to members
Cheaper energy prices: Local distribution reduces grid fees
No hidden fees: Clear cost structure without surprises
Potential revenue: Producers receive fair compensation for excess energy
Typical LEG costs:
Energy price: 0.08-0.12 CHF/kWh (vs. 0.15-0.25 CHF/kWh with provider)
Monthly base fee: 5-20 CHF
One-time membership fee: 0-500 CHF
Utility Provider:
Variable prices: Dependent on electricity market and provider strategy
Higher total costs: Grid fees, levies, and taxes increase the price
Price fluctuations: Market-dependent prices can fluctuate
No revenue: No possibility to sell own energy (except via feed-in tariff)
Activation: Smart meter installation (if required)
Termination: Cancel with previous utility provider
Start: Begin LEG membership
Tip: Most LEGs support you during the switching process and help coordinate with your previous provider.
Common Questions About Switching
Can I switch back to a utility provider at any time? Yes, most LEGs have flexible notice periods. Switching back is possible at any time.
Is my supply security guaranteed? Yes, LEGs are connected to the public grid. If local production is insufficient, grid electricity is automatically drawn.
What happens to my existing solar panel? Your solar panel can be integrated into the LEG. You receive fair compensation for fed-in energy.
Does switching cost money? Usually only a one-time membership fee (0-500 CHF). Most LEGs have no hidden costs.
Conclusion: LEG or Utility Provider?
The decision between LEG and utility provider depends on your individual needs:
Choose an LEG if you prefer sustainable energy, cost savings, community engagement, and control.
Stay with a utility provider if you need maximum supply security without community responsibility.
Our Tip
Many Swiss people combine both options: They stay with a utility provider as a backup and additionally join an LEG to benefit from renewable energy and community.
