Bundestag approves subsidy for grid fees

14.11.2025

Source: E & M powernews

The German parliament has approved a subsidy of 6.5 billion euros towards transmission grid costs for 2026. The aim is to ease the burden on households and companies.

On November 13, the Bundestag passed the federal government's bill for a subsidy towards transmission grid costs in 2026. The law provides for 6.5 billion euros to be made available from the Climate and Transformation Fund (KTF) to reduce electricity prices for private and commercial consumers.

According to the German government, the subsidy is to be passed on to electricity customers via the grid operators. The basis for this is the new Section 24c of the Energy Industry Act (EnWG), which enshrines the cost relief in law. The aim is to reduce electricity costs for households and industry and at the same time ensure the competitiveness of the business location.

Passing on the reduction in charges

In the Bundestag, the CDU/CSU and SPD parliamentary groups voted in favor of the bill, while the Greens voted against and the AfD and Die Linke abstained. The Committee on Economic Affairs and Energy had previously approved the draft with minor amendments. An extension of the measure beyond 2026, as demanded by the Bundesrat, did not receive a majority.

Grid operators will be obliged to show examples on their websites of how the subsidy affects typical customer groups: Household customers with 3,500 kWh annual consumption, commercial customers with 50,000 kWh and industrial customers with 24 million kWh. This is intended to create transparency about the effect of the relief. An amendment proposed by the coalition restricts the obligation to pass on the relief: The rule does not apply to contracts with a price guarantee, provided the guarantee also covers the grid fees.

Energy sector reacts positively

The German Association of Local Utilities (VKU) welcomes the law. Chief Executive Ingbert Liebing said it was the right step to relieve the burden on electricity customers. "Accounting for around 30 percent of electricity costs, grid fees are an effective lever," explained Liebing. At the same time, he called for the subsidy to be partially extended to grid-side levies from 2027 in order to reduce regional differences in the relief.

The German Association of Energy and Water Industries (BDEW) also supports the subsidy. Managing Director Kerstin Andreae described it as an important contribution to curbing electricity prices, but called for the measure to be extended for several years. "In order to create planning security for investments, the subsidy should have been decided on a long-term basis," said Andreae. The subsidy could not guarantee equal relief for all electricity customers. A reduction in electricity tax would be better suited to this, she suggested.

Speed up grid connection procedures

The Federal Association of the New Energy Industry (BNE) also criticized the proposal. Managing Director Robert Busch sees progress in digitalization, consumer protection and energy sharing in the EnWG amendment, which includes the subsidy, but is calling for improvements. The German government must "act swiftly and professionally", particularly with regard to grid connection procedures, in order to solve the existing bottlenecks in the electricity grid.

Clarify the term customer installation

The German Solar Industry Association (BSW Sola) praised a transitional regulation contained in the EnWG to the previously applicable law for so-called customer systems. According to this, the previous regulation, which was rejected by the Federal Court of Justice, will be retained until the end of 2028, at least for existing installations.

At the same time, the association criticizes that it remains questionable to what extent this regulation will help in practice and, in particular, be applicable to new projects for tenant electricity and shared building supply. The legislator should therefore deliver a permanent, legally secure regulation that complies with European law as quickly as possible, as developed in the legal opinion, the BSW-Solar appeals.

The Bundestag announced that it would re-examine the procedure for relieving grid charges in 2027. It remains to be seen whether the subsidy will be extended. However, according to the Federal Ministry of Economics, the financial support for 2026 should ensure that electricity prices for consumers fall significantly.

Author: Susanne Harmsen