The promised relief for private households on electricity costs announced by the federal government is falling significantly short of expectations, according to calculations by consumer protection advocates. In "almost all examined regions," the annual relief of €100 that was outlined is being markedly missed, the Federation of German Consumer Organisations (vzbv) announced Friday based on a market analysis. On average, households with normal consumption are saving €56 per year.
Calculated savings vary considerably depending on region and grid area, from an annual €18 in Rostock to €109 in Mainz. A law that came into force in mid-December established a federal subsidy for transmission grid costs amounting to €6.5 billion. Network charges are levied for the use and maintenance of power lines, as well as the provision and reading of meters, and vary by region.
Through this subsidy, the cost burden on electricity customers from network charges is intended to be dampened in 2026, thereby reducing overall electricity costs. The government quantified the expected relief for a household with average electricity consumption at "approximately €100 in calculated terms."
"The federal government is not keeping its own commitments," declared vzbv chief Ramona Pop in response. For most households, the announced relief remains "an empty promise, and as a consequence of the Iran war, electricity prices threaten to rise again."
The governing coalition had actually stipulated in the coalition agreement to implement permanent relief for consumers and businesses by at least five cents per kilowatt-hour. To achieve this, an immediate measure was supposed to include reducing the electricity tax for all to the European minimum level—but consumers were initially excluded from this. At the end of last year, the federal subsidy for reducing network charges was then decided.
A reduction of the electricity tax to the European minimum level would be "more effective and fairer for private households," the consumer protection organization stated. This would be the "more sensible relief measure" and would also apply nationwide to every household, without regional differences.
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