German businesses and households are likely to see a decrease in electricity prices next year, stemming from anticipated reductions in grid usage fees. Preliminary calculations suggest a significant drop – potentially nearly 60% – in the charges levied for utilizing the high-voltage transmission lines, commonly referred to as “power highways”. This reduction is expected to translate into lower end-prices for both private and commercial consumers.
The decrease is driven by a planned €6.5 billion governmental subsidy for the four transmission system operators responsible for maintaining these vital energy routes. The operators are required to formally register their final rates by October 1st. Following this, distribution network operators, who manage the local networks and directly supply end-users, will compute their fees, culminating in finalized overall charges by October 15th. This total represents roughly one-third of overall electricity costs.
The German Federal Ministry for Economic Affairs, under the leadership of Minister Katherina Reiche, is characterizing the development as a positive outcome. A ministry spokesperson stated the government’s subsidy program is delivering tangible results, providing relief to businesses and consumers amounting to €6.5 billion. The aim is to mitigate the impact of high electricity prices on the nation’s competitiveness.
The anticipated reduction is expected to have a noticeable effect across various sectors, including small and medium-sized enterprises, industry and private households. As an illustrative example, the spokesperson estimates an average relief of two cents per kilowatt-hour for residential customers, potentially saving a four-person household approximately €100.
However, the opposition Green Party has expressed reservations. Michael Kellner, the party’s spokesperson for energy policy, argued that businesses require long-term investment planning certainty and suggested consistent subsidies for grid charges would be preferable. He also questioned whether the full extent of the relief would be passed on to consumers and distributed evenly across the country. While acknowledging potential savings of one to three cents per kilowatt-hour for citizens and businesses, he championed a more uniformly applicable solution through direct subsidies, rather than adjustments to charges.