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Germany Approves €6.5 Billion 2026 Grid-Fee Subsidy, Keeps Power Tax Cut to Industry

Household savings remain uncertain because suppliers are not obliged to pass on lower network costs.

Overview

  • The cabinet backed a €6.5 billion transfer in 2026 to the four transmission operators Amprion, 50Hertz, TenneT and TransnetBW, financed from the Klima- und Transformationsfonds as part of a €26 billion four-year plan.
  • The government estimates an average relief of roughly 2–3 cents per kWh for households, with wide regional differences such as Avacon 2.58 ct/kWh, Hamburg 2.38, SWM 1.48, Bayernwerk 1.36 and E.DIS 1.27.
  • Energy suppliers are not legally required to pass the subsidy through to end customers, and industry groups caution that some regions may see little or no effect.
  • The electricity tax reduction is being made permanent only for the producing sector and land and forestry, potentially covering more than 600,000 firms, though the DIHK expects at most about 15% of businesses to benefit.
  • Future measures remain open, including a possible subsidy of the offshore grid surcharge from 2027 that would need EU approval, and multi‑year financing beyond 2026 has not been finalized.