01 Nov 2023, 13:07
Carolina Kyllmann

German govt greenlights €5.5 bln subsidy to dampen increase of electricity grid fees

Clean Energy Wire

The German government has greenlit a subsidy worth 5.5 billion euros to go towards grid fees in 2024 in a bid to cushion the impact of rising electricity prices on consumers. The economy ministry confirmed that funds from the Economic Stabilisation Fund should help finance the grid fees charged by the four high-voltage transmission system operator (TSO) companies. In 2023, Germany paid just under 13 billion euros towards them to slow the increase of power bills. Network operators recently announced they would increase their grid fees for 2024 as they envisaged continued high costs for so-called redispatch measures to stabilise the grid and for backup capacities.

Grid fees are included in electricity bills and, in the second half of 2022, accounted for more than 20 percent of the price German households paid for electricity. Distribution grid fees are also set to rise, by an average of 11 percent despite the government's financial support, according to price comparison website check24. This would raise costs for an average household by 47 euros per year, according to check24’s analysis. "There will be larger price increases in the previously comparatively cheap federal states in the south," Steffen Suttner from check24 said. Grid fees in southern Bavaria are set to rise by 17 percent next year, with consumers paying roughly 66 euros more compared to 2023, the price comparison website calculated.

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