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Germany Moves to Cut 2026 Energy Bills With €6.5 Billion Grid Subsidy and Tax Changes

The package still needs Bundesrat sign-off as experts warn households will see smaller savings than energy‑intensive industry.

Overview

  • Bundestag approval clears a €6.5 billion 2026 subsidy for transmission network operators designed to lower grid fees from 1 January 2026, alongside abolishing the gas storage levy and making a reduced electricity tax permanent.
  • The government touts roughly €10 billion in annual relief and says a typical household could save up to €150 a year, but final impacts depend on supplier pass‑through and local network structures.
  • Independent analysis by Verivox estimates household electricity bills will fall by around 4 percent on average and that less than one third of the subsidy will reach private consumers.
  • The law adds a one‑off transparency rule requiring network operators to publish 2026 transmission charges both with and without the subsidy to show the measure’s effect.
  • Industry is expected to benefit more than households, with BDI citing potential average industrial relief of up to 57 percent and BDEW noting transmission charges make up about 28 percent of power prices and could drop by roughly two cents per kWh.