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Germany Confirms €6.5 Billion 2026 Subsidy to Cut Grid Fees and Lower Power Bills

Supplier discretion leaves the effect on household bills uncertain across regions.

Overview

  • From January 2026, the federal government will channel €6.5 billion to the four transmission operators Amprion, 50Hertz, TenneT and TransnetBW to reduce network charges by roughly 2 cents per kilowatt-hour on average.
  • Government figures show sharp regional differences in relief, with example calculations indicating Avacon at −2.58 ct/kWh and Hamburg’s grid at −2.38 ct/kWh versus E.DIS at −1.27 ct/kWh, Bayernwerk at −1.36 ct/kWh and SWM at −1.48 ct/kWh.
  • Despite the subsidy, eastern Germany is expected to remain comparatively expensive due to historically higher network fees and ongoing grid investments by 50Hertz, according to regional reporting.
  • Energy suppliers are not legally required to pass the subsidy through one-to-one, prompting consumer groups to advise customers to review 2026 price sheets and consider switching if reductions are not reflected.
  • Market data underscore the price gap, with wholesale day-ahead power around 14–15 ct/kWh and typical new-customer offers near 27 ct/kWh, while households pay an electricity tax of 2.05 ct/kWh compared with 0.05 ct/kWh for industry.