Federal network agency plans to redistribute grid fees

The Federal Network Agency has presented cornerstones of a reform to electricity grid fees. In future electricity producers will also contribute. This affects in particular owners of photovoltaic systems.

The Federal Network Agency plans a redistribution of fees for the use of electricity grids. Annually this involves costs of about 37 billion euros currently borne by businesses and private households via electricity bills.

Network Agency President Klaus Müller said on Wednesday the new system should strengthen cost efficiency and achieve a fair distribution of burdens. Private electricity producers such as those on house roofs will also be included.

For the economy the regulation is to become more flexible in important parts.

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Swedish PM Ulf Kristersson shakes hands at EU summit, securing bottleneck fees for national electricity grid expansion.
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Kristersson secures Swedish bottleneck fees at EU summit

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Prime Minister Ulf Kristersson has received guarantees at the EU summit in Brussels that Swedish bottleneck fees will only fund expansion of the Swedish electricity grid. The funds will not be used for European projects. Meanwhile, the EU emissions trading system is defended against calls for changes.

Federal Economy Minister Katherina Reiche wants to abolish feed-in tariffs for new photovoltaic systems up to 25 kilowatts from 2027. The draft amendment to the Renewable Energy Sources Act provides for this change.

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Federal Economy Minister Katherina Reiche faces growing criticism over plans to abolish the legal feed-in tariff for solar systems on house roofs. Yet not all industry representatives reject the move.

German Finance Minister Lars Klingbeil, together with counterparts from Austria, Italy, Portugal and Spain, has called on the EU Commission to swiftly develop an EU-wide tax on excessive profits by energy companies. In a joint letter, they reference the 2022 solidarity contribution introduced during the energy crisis following Russia's invasion of Ukraine, proposing a similar instrument amid current market distortions from the Iran war.

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The Department of Energy backed proposals to suspend, reduce or remove value-added tax on electricity amid rising power bills and inflation. The agency said it is ready to provide technical input on energy-sector impacts. This comes as inflation surged to 7.2% in April.

One year after the April 28, 2025, blackout that paralyzed power for 36 million consumers across Spain, Portugal, and parts of France, Spain's CNMC has escalated sanctions against Red Eléctrica and utilities including Endesa, Iberdrola, and Naturgy. Reinforced grid operations have spiked electricity costs, yet no structural reforms or political accountability have emerged.

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Energy Minister Ebba Busch (KD) launches a sharp attack on EU Energy Commissioner Dan Jørgensen in the dispute over Swedish bottleneck revenues. She recently paused the expansion of a power cable to Denmark.

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