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Germany Plans €6.5 Billion 2026 Subsidy to Cut Power Grid Fees

A draft law would route KTF funds to transmission operators to lower charges, with pass-through and regional impact still uncertain.

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Stromrechnung

Overview

  • Economy ministry has sent a bill into inter‑ministerial coordination to finance transmission costs in 2026 with €6.5 billion from the Climate and Transformation Fund.
  • Funds would be paid to transmission system operators to reduce net charges, aiming to ease retail electricity bills.
  • Expected effect is about two cents per kilowatt-hour off network fees, translating to roughly €25–€50 a year for a typical household depending on usage and tariff.
  • Consumer groups and municipal utilities warn relief will vary by region and suppliers are not obliged to pass savings to customers; VKU suggests directing part of the money to cut uniform surcharges such as the offshore-network levy.
  • The step is part of a broader relief package that includes freeing customers from the gas storage levy and extending the electricity‑tax cut for manufacturing, while a general tax cut for households remains on hold.