Network fees are falling: large industries benefit – households pay more!

Network fees are falling: large industries benefit – households pay more!

The German federal government plans to finance the transmission network costs to the tune of 6.5 billion euros. The aim of this measure is to reduce network fees by around two cents, from which electricity-intensive industrial sectors will mainly benefit. These companies are at the center of the discussion because investments in renewable electricity systems pay off more quickly for them than for private households. This means that large-scale PV systems for electricity-intensive businesses are significantly cheaper thanks to volume discounts.

However, the government faces criticism. According to oekonews, the planned law is perceived as a further subsidy for electricity-intensive companies that have benefited for decades from advantages that are not available to other electricity customers. Stefan Körzell, board member of the DGB, says that the network fee subsidy must not lead to an endless burden on the federal government. He suggests that the federal government intervene with all four transmission system operators to find long-term and cost-effective solutions for network financing.

Regionally different network fees

Another aspect of the discussion is the regional differences in network fees. Some regions in Germany generate more electricity from renewable energies than they consume, but this results in significant costs associated with converting the networks. According to bundesnetzagentur, network fees are falling in these regions, which leads to additional costs for all electricity consumers in Germany, which are levied via the nationwide “surcharge for special network use”.

In 2025, 178 network operators will benefit from the rolling mechanism, which will enable a total of 2.4 billion euros to be redistributed. However, the exact impact on network fees varies as it depends on the total costs of the respective network operator. Despite potential cost reductions, an average household customer with a consumption of 3,500 kWh per year is forecast to have an annual additional burden of around 33 euros.

Measures to stabilize network costs

The analysis by Agora Energiewende highlights that planned state subsidies to reduce network fees could be up to 80% lower if fundamental reforms to increase efficiency in network operation are not implemented become. Without these reforms, grid-related costs for electricity consumers could rise by up to 30% in the next few years. As a countermeasure, the introduction of dynamic network fees for flexible consumers such as electric vehicles and heat pumps is proposed.

In addition, the aim is to reduce the subsidies from the current 197 billion euros to just 35 billion euros in order to achieve significant savings in the federal budget. The proposed measures include, among other things, the use of overhead lines instead of underground cables when expanding the power grid and federal equity investments. The goal is a stable cost structure for network-related items and a transparent cost distribution for all consumers.

The current situation in the energy sector shows that the interests of electricity-intensive companies and general electricity consumers are increasingly coming into conflict. It will take time to find suitable solutions that are both economically sensible and fair.