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Germany Plans €6.5 Billion Annual Grid-Fee Subsidy From 2026

A draft law from the Economics Ministry would use the federal climate fund to lower transmission charges.

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

Overview

  • The ministry has submitted the bill for internal government coordination to implement the relief starting in 2026.
  • Funding would come from the Klima- und Transformationsfonds, with €6.5 billion earmarked each year and continuation envisioned beyond 2026.
  • The cut is to be delivered via reduced transmission charges and possibly through other price-linked levies, with the distribution mechanism still undecided.
  • Economics Minister Katherina Reiche expects network operators to pass savings to customers, while the BDEW cautions that benefits will vary by region.
  • The move is part of a broader energy-relief package that includes freeing consumers and companies from the gas storage levy and extending reduced electricity tax for manufacturing from 2026.