Germany’s federal government plans to keep subsidising electricity transmission costs through 2029, with €5.525 billion proposed for 2027, down from €6.5 billion this year. The German Bundestag reported on 6 November 2026 on a hearing of its Committee on Economic Affairs and Energy. The grid operators have already factored the smaller subsidy into their provisional charges for 2027.
Key facts
- Section 24c of Germany’s Energy Industry Act provides for a total federal subsidy of €6.5 billion in calendar year 2026.
- The government proposes €5.525 billion a year from the Climate and Transformation Fund for 2027 through 2029.
- The provisional charges for 2027 assume that the legislation is passed.
How would the subsidy change grid charges?
Under the current law, the transmission operators responsible for Germany’s control areas are entitled to the 2026 subsidy. The federal government pays it in ten equal instalments. Each operator’s share depends on its portion of the combined revenue caps. When calculating the nationwide transmission charges, the operators must subtract the subsidy from the revenue caps used in the calculation, reducing the amount they have to cover through those charges.
The proposal would put a new provision in the Energy Industry Act for the following three years. The annual amount would be €975 million lower than the 2026 subsidy. Germany’s four transmission operators, 50Hertz, Amprion, TenneT Germany and TransnetBW, published their provisional 2027 calculation on 1 October. It gives the average charge at the extra-high-voltage and transformation levels, alongside a 2026 comparator and a scenario without the proposed subsidy.
| Year and calculation basis | Average transmission charge (euro cents/kWh) |
|---|---|
| 2026, operators’ comparison figure | 2.86 |
| 2027, provisional with the proposed subsidy | 3.54 |
| 2027, scenario without the subsidy | 6.52 |
On those figures, the subsidy would soften the increase. The provisional average would still rise by 0.68 euro cents per kilowatt-hour from 2026. Transmission charges are one part of the costs that reach households and businesses. Regional distribution networks levy charges too, and electricity bills also reflect procurement costs, taxes and levies. The transmission figures therefore do not translate into a uniform change in the price paid by end customers.
Why do witnesses differ on who benefits?
At the hearing, the Federation of German Consumer Organisations welcomed the prospect of relief but argued that cutting the electricity tax would be more targeted. If the government keeps the subsidy, the federation said, it should ensure the relief reaches households. The Macroeconomic Policy Institute welcomed the prospect of a multi-year measure, while raising questions about the effect on households and smaller businesses. It suggested taking larger public stakes in the grid operators as a longer-term approach.
Industry and labour representatives also called for more support. The Federation of German Industries backed the subsidy but said it would have preferred to keep it at the 2026 level. The IG Metall union said the measure could be implemented quickly and called for maintaining at least the previous amount.
The grid operators emphasised that a multi-year subsidy would make it easier to plan and urged lawmakers to complete the legislative process quickly. The practical question for the final charges is whether the subsidy is secured in law in time. The operators identified 7 December 2026 in their October announcement. If they lack legal certainty by then, they expect the final nationwide transmission charges for 2027 to be higher than in their provisional calculation with the subsidy.
