Germany’s transmission system operators have announced preliminary electricity grid fees for 2026, projecting a 57% reduction, contingent on government subsidies. The cut aims to provide relief for consumers and industrial customers facing some of the highest electricity costs in Europe.

The fees are set to drop from 6.65 cents per kilowatt hour (kWh) to 2.86 cents/kWh, supported by a EUR6.5 billion subsidy from the national climate fund, the operators 50Hertz, Amprion, TenneT, and TransnetBW said in a joint statement. The reduction requires parliamentary approval of legislation by December 5.

Transmission fees, along with levies and taxes, have significantly inflated electricity prices, adding pressure on energy-intensive industries and the wider economy. Private consumers currently pay around 40 cents per kWh, up 20% from pre-crisis levels. In addition to the planned cut, Chancellor Friedrich Merz’s coalition government intends to lower the electricity tax to the European minimum for industrial and agricultural sectors, among others.