Facts
In 1962, Kraftwerke Oberhasli AG (KWO) received a comprehensive concession for the utilization of hydropower in Oberhasli. The concession set the water royalty at 6 Swiss francs per PS of gross capacity. Since 1968, the water royalty has been adjusted in line with changes to the federal legal maximum rate, most recently to 54 Swiss francs per kW. Effective 1 May 1997, the federal legal maximum rate was increased to 80 Swiss francs per kW. Consequently, the Water and Energy Management Office of the Canton of Bern set the water royalty for KWO at 80 Swiss francs per kW. KWO filed a complaint against this increase, arguing that a vested right granted to it in the concession prevented the increase.Considerations
The Federal Supreme Court dismissed the complaint. It held that while the water royalty is part of the vested rights conferred by the concession, the concession may reserve the right to future legislative changes, allowing adjustments to the water royalty in line with changes to the federal…