Electricity prices in 2027: This will affect companies

Higher gas prices, rising network charges, and a declining federal subsidy will all come together in 2027. The industrial electricity price only benefits a small group of companies and costs the federal government more than planned.

Summary

  • The three electricity tariffs will increase in 2027 for non-privileged consumption from 2.946 to 3.621 ct/kWh (+22.9 %%). This mainly affects companies with annual consumption of up to 1 GWh per consumption point.
  • The spot market prices for 2027 are around €100/MWh; by the end of the year, they could reach around €110/MWh.
  • The industrial electricity price could cost the federal government up to around one billion euros more in 2027 than in 2026.
  • The reference price for 2027 and the law on the federal subsidy for network charges are open to discussion.

Anyone planning energy budgets for 2027 must expect higher costs than this year. Prices on the spot market are significantly above the level of 2026. On October 26, 2026, transmission grid operators also published the levies for the coming year, and they are falling significantly higher.

The background is a combination of several developments. The Iran war and the closed Strait of Hormus have sharply increased the gas price, and this has an impact on the entire electricity market through the gas power plants. At the same time, network levies are rising, and the federal subsidy for network costs is set to decrease. The relief for industry that the federal government introduced in the spring was designed with significantly lower prices in mind. It benefits only a portion of the companies and will cost the federal budget more than expected.

For companies, this means that the electricity costs in 2027 depend on several factors that may still change. We are identifying which developments are driving the electricity price, what is already set in stone, and what remains open.

What will drive electricity prices for companies in 2027?

First of all, the cost of acquiring gas drives up the cost of electricity.

Because of the war in Iran, the Strait of Hormuz has been closed for months; Qatar can no longer deliver liquid gas. The world market is thus lacking about one-fifth of the usual amount of gas. The gas price has now reached about 90 euros per megawatt-hour (MWh), which is approximately three times the pre-war level. Because gas-fired power plants often dictate the electricity price, this is also being passed on to the electricity market: According to Aurora Energy Research, the futures prices for 2027 so far average at around 100 euros/MWh. If prices remain at today's level until the end of the year, they would be around 110 euros/MWh.

Second: A plus of 22.9 % for levies and network costs

The Transmission system operator the surcharges have been published for 2027. For non-privileged end users rising together from 2.946 to 3.621 cents per kilowatt hour (kWh). These standard rates apply fully to the first 1 GWh of annual consumption per delivery point. For quantities exceeding this, rates are sometimes significantly reduced for large consumers, depending on the industry and the intensity of electricity costs. These remain unchanged in 2027 at 0.050 ct/kWh and 0.025 ct/kWh. This increase is therefore primarily borne by companies below this threshold, i.e. a large proportion of the middle class.

Subsidies20262027Change
Surcharge for special network usage (§ 19 StromNEV) for consumers under 1 GWh/a1,559 ct/kWh2,027 ct/kWh+30%
Offshore grid levy0.941 ct/kWh1,143 ct/kWh+21.5%
KWKG levy0.446 ct/kWh0.451 ct/kWh+1.1%
Total2,946 ct/kWh3,621 ct/kWh+22.9%

With this, the total is once again approaching the EEG levy abolished in 2022, which was last at 3.723 ct/kWh. In addition, the network charges will also rise significantly starting in 2027. The federal subsidy, which offsets part of the network costs, is set to drop from 6.5 to 5.525 billion euros.

Thirdly: The relief provided by the industrial electricity price is too short-lived

The federal government supports energy-intensive companies with the so-called. 5-cent industrial electricity price. The instrument, which will apply from 2026, is initially valid for three years. It aims to reduce half of the eligible electricity output to a price of 50 euros/MWh. However, with rising prices, this will now become significantly more expensive for the state. According to a Handelsblatt calculation based on Aurora data, the federal government could spend up to around one billion euros more in 2027 alone than in 2026. The 3.8 billion euros in funding approved by the EU for 2026 to 2028 would therefore be almost reached in just one year.

For the companies, the effect remains manageable because higher network fees, levies and surcharges offset the advantage. Industry associations are therefore demanding a price of 50 euros/MWh including all fees, charges and taxes.

What remains unclear regarding electricity prices in 2027?

The reference price for the industrial electricity price in 2027 will not be fixed until the end of the year, as it is based on the average futures market prices of the year. The law on the federal subsidy is still in parliamentary proceedings; the expert hearing is scheduled for early November. If the subsidy is not approved by December 7, the network charges could be even higher.

How can companies respond to rising electricity prices?

Companies have no influence on exchange rates and levies; they have no influence on their electricity supply or their load profiles. Self-generation via Photovoltaics reduces the network connection and thus the costs per kilowatt-hour consumed. One Battery storage It increases self-consumption, cuts peak loads, and can generate additional revenue through the marketing of flexibility. As prices and network costs rise, the profitability of such solutions improves.

Frequently asked questions about electricity prices in 2027

By how much will electricity prices rise in 2027?

The three remaining levies increase for non-privileged end consumers from 2.946 to 3.621 cents per kWh, which is 22.9 percent. The § 19 StromNEV levy increases the most with 30 percent, followed by the Offshore Netzumlage with 21.5 percent. The KWKG levy remains almost constant at 1.1 percent plus. For part of the levies, reduced rates apply starting at 1 GWh of annual consumption per collection point.

Why will electricity prices for companies rise in 2027?

Three factors are acting together: higher procurement costs due to the increased gas price, rising levies and network charges, and a declining federal subsidy for network costs.

What is the industrial electricity price?

A state subsidy for eligible energy-intensive companies. The price for half of the eligible electricity will be reduced to 50 euros per MWh. The federal government will offset the difference with the reference price, which is derived from the spot market prices.

What will the industrial electricity price cost the state in 2027?

This depends on the reference price and the amount of subsidized electricity. According to a calculation by Handelsblatt based on Aurora data, the federal government could pay up to about one billion euros more in 2027 than in 2026. The EU had approved a total of 3.8 billion euros for 2026 to 2028.

How can companies reduce their electricity costs in 2027?

Through less reliance on the grid, for example through self-generated PV power, and through battery storage that can increase self-consumption, reduce peak loads, and enable flexibility.

Sources

ZfK (Electricity prices 2027: Network charges rise by almost 23 percent, 26.10.2026), Handelsblatt (Gas price shock – Industrial electricity price becomes a billion-dollar risk; calculation based on Aurora Energy Research, KPMG assessment)

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