New tariff rules for electricity will provide considerable relief to consumers in areas with high renewable energy production. This will go into effect on January 1, 2025.
Bonn – The costs for the necessary expansion of the electricity network in connection with the expansion of renewable energies are set to be distributed more equitably across the country starting next year. The Federal Network Agency in Bonn published a new regulation on Friday (August 30) aimed at alleviating the burden on regions with high renewable electricity production. “We are creating fair grid fees for people and companies living and working in regions with strong development of renewables,” explained agency director Klaus Müller.
Relief for East Germany: Electricity grid fees to decrease
Regions that produce significantly more renewable energy than they consume face substantial costs for network restructuring, which currently are passed on to local consumers. As a result, grid fees are notably higher in much of northern and northeastern Germany compared to other regions. The primary reason for this disparity is the concentration of wind farms in the north and large-scale solar installations in predominantly rural areas.
In the future, these additional costs will be distributed among all electricity consumers in Germany. “The significant relief for the affected regions will consequently incur manageable additional costs for all electricity consumers,” stated the network agency. Therefore, some regions will see an increase in electricity prices.
Initially, network operators with particularly high costs will be identified. They will receive “financial compensation for the additional burdens.” The costs for this relief will be “evenly” distributed across all electricity customers in Germany.
Grid fees play a major role in electricity costs: 20 percent of the price
When the Federal Network Agency first presented its plans, it anticipated relief primarily for Brandenburg, Schleswig-Holstein, and Saxony-Anhalt. Additionally, local grid fees may decrease in Mecklenburg-Vorpommern, Bavaria, and Lower Saxony. Detailed assessments regarding who will benefit and who will not are expected to be available by mid-October. On average, grid fees account for about one-quarter of total electricity costs for private households.
According to the network agency, grid fees in different regions vary between 5 and 15 cents per kWh. Notably, even within federal states, there can be significant differences in grid fees. Currently, residents in areas with high renewable electricity generation bear almost all the costs of the energy transition.
