Germany to Cut Electricity Transmission Subsidy in 2027, Raising Net Fees

The federal government plans to reduce its grant for transmission network costs from €6.5 billion in 2026 to €5.5 billion in 2027, a cut of roughly 15 %. The subsidy supports the net‑fees component of electricity prices, which accounts for about one‑quarter of the total. With the lower grant, the Bundesverband der Energie‑ und Wasserwirtschaft (BDEW) expects household net‑fees to rise by about 0.25 cent per kilowatt‑hour, roughly a 3 % increase. For a typical three‑person household consuming 4 000 kWh annually, this translates into an extra €12 per year, while smaller households would see rises of €5‑8. The change is part of the Climate and Transformation Fund’s 2027 budget plan and is aimed at easing pressure on the federal budget while shifting more cost to consumers.