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Germany Moves to Cut Power Grid Fees With €6.5 Billion Annual Subsidy From 2026

A draft law now in internal review would tap the climate fund to curb rising transmission charges, with the method for passing savings to bills still undecided.

Stromrechnung
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Union und SPD hatten sich im Koalitionsvertrag auf eine Deckelung der Netzentgelte geeinigt.

Overview

  • The Economics Ministry has circulated a bill to provide a €6.5 billion federal subsidy for transmission network costs starting in 2026, financed from the Klima- und Transformationsfonds.
  • Officials say the relief is intended to dampen energy‑transition‑driven increases in network charges that have lifted electricity prices for households and industry.
  • Energy spokesperson Andreas Lenz estimated the measure could cut net charges by roughly two cents, equating to about €25–50 per year for a typical household, though the actual benefit will vary.
  • The government has yet to decide how to allocate the subsidy across grid fees and other levies, and Economics Minister Katherina Reiche expects operators to pass savings through to customers.
  • The step is part of a wider package that includes scrapping the gas storage levy and making the reduced electricity tax for manufacturing permanent, while a general electricity tax cut for all is not proceeding for now.