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Germany Moves to Ease Europe’s Costliest Power Bills as 2026 Relief Begins

A €6.5 billion subsidy for grid fees and a pledged cut of up to 3 cents per kilowatt-hour are set to lower household electricity costs from January.

Overview

  • Eurostat reports German households paid about €0.40 per kilowatt-hour in the second half of 2025, the highest in Europe, a snapshot taken before the latest relief measures.
  • The federal government says consumers will benefit from up to 3 cents per kilowatt-hour in electricity cost relief starting in January 2026.
  • Berlin’s grid operator will reduce network charges in 2026, supported by the federal subsidy, and comparison site Verivox says about half of regional suppliers have announced lower tariffs for next year.
  • Gasag will cut its basic-supply gas work price by 0.34 cents per kilowatt-hour from January 1, following the Bundestag’s decision to scrap the gas storage levy that is expected to save households roughly €30 to €60 a year.
  • The Bundesnetzagentur expects electricity prices to be stable or slightly lower in 2026, while Brandenburg’s leader warns industry still needs significantly cheaper power to keep the energy transition on track.