The German Steel Federation (WV Stahl), together with five other industry associations, has called on the German parliament (Bundestag) to maintain the government's annual €6.5 billion subsidy for electricity transmission network charges, warning that a proposed €1 billion reduction would increase electricity costs for industrial consumers.
In a joint statement, WV Stahl, the Federal Association of Energy Consumers (VEA), the Association of Industrial Energy and Power Users (VIK), the Metal Trade Association (WV Metalle), the German Electro and Digital Industry Association (ZVEI) and the German Chamber of Commerce and Industry (DIHK) emphasized that electricity prices in Germany remain significantly higher than those in competing industrial economies such as the US and China, as well as in several other European countries. They also highlighted that ongoing instability in the Middle East has put additional pressure on energy markets, further driving up electricity costs and undermining the competitiveness of German manufacturers.
Electricity grid subsidy reduced network charges to 2023 levels
The €6.5 billion subsidy, introduced at the beginning of 2026, helped reduce electricity transmission network charges to their 2023 levels following substantial increases in previous years. However, the proposed €1 billion reduction in funding would partially reverse this relief, potentially increasing electricity costs for industrial and commercial consumers as well as households.
The associations emphasized that electricity transmission network costs are expected to remain high or increase further in the coming years, making continued financial support necessary to maintain competitive electricity prices. They also warned that reducing the subsidy could undermine investment planning and weaken incentives for the electrification of industrial processes.
Therefore, the six associations called on the Bundestag to reject the proposed €1 billion reduction and maintain the annual electricity grid subsidy at €6.5 billion in the coming years. According to the joint statement, maintaining the subsidy would be consistent with the federal government's previously announced commitment and would help support more competitive electricity prices for German industry.
