Overview

• Energy costs for a typical three-person German household have decreased by 5% since January 2025, now averaging 5173 Euros per year.
• The government plans to lower the electricity tax to the European minimum, reduce grid fees, and eliminate certain surcharges by July 2025.
• A four-person household could save up to 220 Euros annually under the proposed measures, according to a study by the Institut der Deutschen Wirtschaft (IW).
• The recent price drops are attributed to a weak global economy and lower crude oil costs, though prices remain over 25% higher than pre-2022 energy crisis levels.
• Experts caution that the planned reductions are short-term relief and stress the need for long-term solutions, including renewable energy expansion and grid modernization.