Scholz Proposes Energy Price Cap, Rejects Full Nationalization of Power Grids

The German Chancellor suggests federal involvement and cost-sharing reforms to address rising electricity prices, while emphasizing the need for infrastructure investment.

Chancellor Olaf Scholz opposes the full nationalization of Germany's power grids, citing financial and logistical challenges.
Scholz has proposed a price cap of 3 cents per kilowatt-hour and halving grid fees to alleviate energy costs for consumers.
He supports federal participation in the power grid sector and potentially consolidating the four major transmission operators.
Germany faces significant infrastructure demands, with billions required to expand power networks to transport renewable energy from north to south.
Industry leaders stress that accelerating grid expansion is critical to reducing long-term costs and supporting the energy transition.