The new Electricity Price Act is causing debate among politicians, business leaders, and consumers. The federal government under Friedrich Merz is planning a €6.5 billion subsidy from the Climate and Transformation Fund for 2026. This is intended to reduce grid fees, which account for a significant portion of electricity costs. However, for many households, the relief falls short of original expectations. (futurezone: 29.08.25)
Little relief from the Electricity Price Act
On average, the price will fall by two cents per kilowatt-hour, in exceptional cases by three cents. However, when taxes and duties are added, most households will only receive 1.5 cents per kilowatt-hour. The coalition agreement between the CDU, CSU, and SPD originally promised “at least five cents per kWh.” There is therefore a significant gap between the announcement and the reality.
In addition, according to the draft bill from the Ministry of Economic Affairs, grid operators are permitted to raise their grid fees even mid-year if the subsidy is not paid out on time. This poses significant risks for energy suppliers with fixed-price contracts.
Energy suppliers warn of risks
If the increased electricity costs cannot be passed on directly to customers, special termination rights arise. Many contracts could be canceled as a result. Falling grid fees, on the other hand, do not trigger special termination rights. This imbalance is causing discontent among energy suppliers.
The German Association for New Energy Industries (BNE) criticizes: “An adjustment of grid fees during the year is problematic for suppliers and also contradicts the obligation to introduce fixed-price contracts, which was only proposed in July 2025.” The association also calls for funding from the federal budget instead of the Climate and Transformation Fund.
Criticism of the procedure
The procedure surrounding the Electricity Price Act is also causing controversy. The deadline for submitting a statement was extremely tight, even though the coalition agreement actually stipulates four weeks. Industry representatives complain that genuine participation was barely possible.
For consumers, this rush creates additional uncertainty. Important practical advice could barely be taken into account, while electricity costs are likely to continue to rise for many.
Households only benefit slightly
Private households barely notice the relief. Consumption of 4,000 kilowatt hours results in savings of only €60 to €80 per year. But this amount can quickly be wiped out by higher grid fees.
In addition, many energy suppliers factor potential risks into new contracts. This could lead to higher tariffs, even if grid costs remain stable. The hoped-for relief from the Electricity Price Act is thus in jeopardy.
Unclear Future for Electricity Prices
According to information from the Newspaper for Municipal Economy, further relief is conceivable after 2026. However, the subsidy is only fixed for one year. Whether future measures will be implemented through surcharges or additional taxes remains to be seen. This means continued uncertainty for households.
Without a structural reduction in grid fees, the Electricity Price Act remains a temporary solution. Millions of consumers will ultimately face less relief, while energy suppliers struggle with increasing risks. Stability in electricity costs is therefore becoming a distant prospect.