Germany's Ambitious Plan: Halving Electricity Network Fees

Germany's potential next government plans to halve electricity network fees, a move expected to cost around 6 billion euros annually. The move aims to lower high electricity prices, a significant burden due to grid fees, levies, and taxes. The plan includes reducing electricity tax to the EU minimum.

Germany's proposed coalition government, comprising conservatives and the Social Democrats (SPD), is considering a bold move to halve electricity network fees, according to Stefan Kapferer, CEO of grid operator 50Hertz. The measure, part of an effort to lower soaring electricity prices, would require an estimated 6 billion euros annually.

In a press briefing, Kapferer emphasized the importance of reducing overall energy costs, noting that securing such a substantial subsidy consistently each year poses significant challenges. The initiative also includes reducing Germany's electricity tax to the European legal minimum.

Germany endures the highest power prices in Europe, attributable to substantial grid fees, levies, and taxes, which constitute about half of consumers' electricity expenses. This economic reality places immense pressure on the new government to seek viable cost-reduction strategies.

(With inputs from agencies.)