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Germany Proposes €6.5 Billion Annual Grid-Fee Subsidy From 2026 to Ease Power Bills

Savings depend on regional grid structures and on suppliers passing reductions to customers.

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Overview

  • The economy ministry has sent a draft law into interministerial coordination to use Klima- und Transformationsfonds money to pay €6.5 billion in 2026 to transmission system operators, with the same volume planned in subsequent years.
  • Officials say the subsidy targets transmission charges, with reductions estimated at roughly 2 cents per kWh; comparison portal Verivox estimates about 1.6 cents per kWh on average, equating to typical household savings of around €25–€50 a year.
  • Suppliers are expected by the government to pass through lower charges to end users, yet there is no legal requirement and the impact will vary widely across regions.
  • Consumer advocates, the municipal utilities association and officials in Schleswig-Holstein warn that many households and SMEs may see little relief and urge diverting part of the funds to other levies such as the offshore network surcharge.
  • The proposal forms part of a broader package that includes scrapping the gas storage levy and extending the reduced electricity tax for manufacturing, while a universal cut to the power tax remains deferred.