Habeck expects lower electricity prices in the east

New regulations on cost allocation for the electricity grid could curb electricity prices in parts of Germany, according to Federal Minister for Economic Affairs Robert Habeck (Greens). Until now, electricity customers in the north and north-east have been particularly burdened by the expansion of wind and solar energy. "It was unfair that grid costs were higher in these regions than in areas that benefited from the expansion of cheap renewable electricity," Habeck told Redaktionsnetzwerk Deutschland (RND). "This is now changing, and the reduction in distribution grid fees will also lead to lower prices in Saxony and many regions in the east."

The so-called grid fee accounts for around a quarter of the electricity price for household customers - with large regional differences. This is because customers also use their electricity bills to pay for the digitalization and expansion of local grids. The Federal Network Agency has now announced a new billing model for 2025. It is intended to distribute the additional costs incurred in regions with particularly high levels of renewable electricity generation more fairly.

"We are creating fair grid fees for people and companies living and operating in regions with a strong expansion of renewables," said Agency President Klaus Müller. "The energy transition is a joint task and investment in the grids benefits everyone." How much households have to pay for their electricity depends not only on grid fees but also on the electricity exchange price, taxes, levies and distribution costs.