Overview

• The cabinet approved a permanent cut of the electricity tax to the EU minimum for the producing sector and agriculture, potentially covering more than 600,000 firms, while the DIHK estimates only up to about 15 percent of all companies will benefit.
• Berlin will subsidize transmission system costs with €6.5 billion in 2026, financed from the Climate and Transformation Fund, with a four-year envelope of €26 billion and a possible shift in 2027 to supporting the offshore surcharge subject to EU approval.
• Government calculations point to household relief of up to 2.4 cents per kWh, averaging around 2 cents, whereas Verivox estimates closer to 1.6 cents per kWh.
• Savings will vary widely by region due to local grid structures and generation patterns, with studies indicating some distribution areas may see little or no reduction.
• Legislation now goes to the Bundestag as business groups and consumer advocates criticize the limited scope, after a broader, universal tax cut promised earlier was not delivered.