Overview

• The government draft would deploy €6.5 billion in 2026 to halve transmission charges from 6.65 to 3.325 cents per kWh, with the support ending in 2027.
• Funding is slated to come from the Climate and Transformation Fund, and the proposal is due to go to the cabinet next week.
• The previously floated electricity‑tax cut for households has fallen through, and a targeted plan for energy‑intensive firms has not yet been presented.
• Projected savings for households vary widely, with estimates ranging from roughly 1.3 to 2.4 cents per kWh—about up to €100 a year for typical usage—and pass‑through by suppliers is not guaranteed.
• Economic and political voices criticize the one‑year limit as undermining investment certainty, with IW Köln’s Thilo Schaefer calling it a fatal signal and industry groups urging longer‑term decisions.