Mystery Surrounding Electricity Packages in Government Storage: Origin of Discharges Explored

The German federal government has announced a series of measures aimed at reducing electricity costs for consumers, businesses, and industries. One of the key components of this plan is a subsidy for transmission network charges, which account for approximately 28% of the total electricity price.

Older network infrastructures have higher maintenance and repair costs, affecting network charges and, consequently, the overall electricity price. To address this issue, the government plans to provide a 6.5 billion euro subsidy for transmission network charges in the coming year. This subsidy is intended to benefit all electricity consumers, including private households, and could potentially lead to a reduction in network charges of up to 2.4 cents per kilowatt hour on average.

However, the subsidy does not reach all electricity customers equally. According to Kerstin Andreae, Chairwoman of the BDEW Management Board, some regions may experience higher or lower relief depending on the actual grid area.

In addition to the subsidy for transmission network charges, the government also plans to permanently reduce the electricity tax for the manufacturing industry and agriculture/forestry to the EU minimum level starting in 2026. This move is expected to provide companies with greater planning security and lower electricity costs by around 3 billion euros annually.

The Steel Industry Association has expressed concern about the lack of planning security for energy-intensive companies regarding network charges. They have called for a reliable and long-term reduction in network charges to ensure the competitiveness of German industries.

The subsidy for transmission network charges will be financed from the Climate and Transformation Fund, a special fund of the federal government. The fund also plans to provide a total of 26 billion euros in relief for the next four years.

The offshore network surcharge is another component of the electricity price, financing costs from the grid connection of offshore wind farms. In 2027, a significant subsidy of the offshore network surcharge may be aimed for, but this would require the approval of the EU Commission.

Transmission network charges are passed on to the next network level, and suppliers then pass this on to their customers, including private households. Regional network charges vary in height from region to region due to different cost structures and the different age of the infrastructure. The expansion of renewable energies also influences network charges due to costs for integration into the networks.

According to the federal government, a family could be relieved by up to 100 euros per year in electricity costs as a result of these measures. However, it's important to note that only a maximum of 15% of businesses in Germany are estimated to benefit from the reduction in electricity tax.

The subsidy for the operators of transmission networks is estimated to be 6.5 billion euros for the coming year. The government also plans to provide additional relief for electricity customers connected to downstream distribution networks, with the subsidy intended to also mitigate cost burdens for these customers.

These measures are part of the German government's broader strategy to address the rising cost of electricity and support both consumers and industries in the transition towards a more sustainable energy future.