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Reform of electricity grid charges

Reform of electricity grid fees: Federal Network Agency opens debate

On May 12, 2025, the Federal Network Agency launched a central procedure for the Reform of electricity grid charges and opens the debate with a 57-page discussion paper. This sets out the framework for the "General System of Grid Charges for Electricity" (AgNeS) in order to develop a sustainable, fair and market-compliant system for grid charges. The background to this is a necessary system change as a result of a ruling by the European Court of Justice and the far-reaching changes in the energy system.

Why is the reform of electricity grid charges necessary?

The current Electricity Grid Charges Ordinance (StromNEV)which currently regulates the formation of grid fees, expires on 31.12.2028. In 2021, the European Court of Justice ruled that the regulation based on ordinances issued by the German government violates European law - in particular the Electricity Directive. The ECJ also ruled that the regulatory authorities of the member states should be granted more autonomy. The German government already complied with this in 2024 in an amendment to the Energy Industry Act (EnWG). The Federal Network Agency must therefore independent and independent decide on the structure of the grid fees.

At the same time, the energy system has changed fundamentally over the past two decades. The Integration of renewable energieswith its increasing decentralized energy generation, digitalization and flexibilization, places new demands on the charging system. The current model is increasingly reaching its limits and experts now estimate the costs for the urgently needed grid expansion at almost 700 billion euros. The aim of the reform is to create incentives that serve the market, ensure cost-appropriate allocation and guide investments efficiently - especially in a system with a growing number of prosumers, storage facilities, controllable consumption equipment and volatile feed-in.

What is being discussed in the reform of electricity grid fees?

In the discussion paper that has now been presented, the Federal Network Agency presents numerous options for how the charging system could be structured in the future. The initial focus is on a fundamental restructuring of the grid fees for distribution and transmission grid operators. In principle, the previous special regulations such as individual grid fees in accordance with Section 19 (2) StromNEV, fees in accordance with Section 14a EnWG or avoided grid fees in accordance with Section 18 StromNEV are also up for debate. In the discussion that is now starting, the authority still reserves the right to grant special discounts at a later date, but it had already announced that at least the Belt load-privilege to expire in 2026.

Further points for discussion are:

Participation of feeders in grid costsCurrently, only end consumers pay grid fees in Germany. The Federal Network Agency is discussing whether operators of generation plants should also be required to finance grid expansion in future, as is the case in other European countries. Possible options would be feed-in-dependent charges or a flat-rate basic grid charge for feeders.

Introduction of new remuneration componentsCurrently, all charges above low voltage are purely consumption-based, although consumption is not necessarily the cost driver. Proposals include flat-rate basic prices, capacity prices or direct pricing of the ordered grid connection capacity.

Greater consideration of prosumersIn the low-voltage sector, the basic price share for prosumers could be increased in order to reflect their grid usage more fairly and ensure an appropriate share of the grid costs.

Dynamic grid chargesThe introduction of time- and location-variable charges based on the actual grid load is seen as a long-term option. However, this would require an almost complete digitalization of the grid and grid users. Initial approaches exist in the definition of controllable consumption devices.

Specific regulations for storage tanks: The Federal Network Agency emphasizes that electricity storage and Large-scale battery storage play an important role in system stability. The grid-friendly integration of storage facilities should therefore be specifically addressed. A differentiated fee regulation for storage facilities is also part of the discussion paper.

Why this reform is so important

According to Klaus Müller, President of the Federal Network Agency, the reform is about much more than technical details:

"Firstly, the number of users who pay the full amount of fees is becoming smaller and smaller - while costs are rising at the same time. Secondly, there is a lack of sufficiently effective signals as to how and where systems can be operated cost-effectively. Thirdly, there are currently no incentives in the system that reward flexible behavior - rather the opposite."

The aim is an efficient, future-proof grid fee system that does not hinder the energy transition but actively supports it. The development of this system should be open-ended, transparent and involve the broad participation of all stakeholders.

What are the next steps in the reform of electricity grid fees?

The reform process will start with an initial industry workshop on June 2 and 3, 2025. Market participants can submit their comments on the discussion paper by June 30, 2025. Further specialist events and exchange formats are to follow. The Federal Network Agency plans to issue one or more binding regulations on this basis in the coming years, which will gradually replace the previous provisions of the StromNEV.

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