Consumer protection advocates have voiced criticism regarding a draft law proposing subsidies for grid connection costs, originating from the office of Economics Minister Katherina Reiche. Ramona Pop, Executive Board member of the Federation of German Consumer Organizations (VZBV), stated on Friday that the federal government’s relief plans continue to disproportionately focus on the economic sector.
The proposed grid cost subsidies are expected to disproportionately benefit industry over individual consumers. Pop indicated that, depending on the region, electricity cost relief for some consumers will “likely have little impact.
The consumer protection advocates are urging the federal government to fulfill its commitment to providing tangible relief to consumers. They are calling for a reduction in electricity price surcharges and the implementation of a reduction in electricity tax for all, as previously announced in the coalition agreement.
The coalition agreement between the CDU and SPD stipulated a commitment to relieve both businesses and consumers in Germany by “at least five cents per kWh” through a package of measures. These measures were initially slated to include an immediate reduction in electricity tax to the European minimum level, alongside reductions in surcharges and grid fees. However, this particular measure is currently absent from the draft federal budget for 2026.
