23.04.2025

Abolition of Avoided Network Charges by the BNetzA: A Step Towards Cost Reduction

Background and Motivation

The Federal Network Agency (BNetzA) plans to abolish the so-called avoided network charges by 2029. This measure aims to reduce costs for the electricity grid and is expected to bring savings of a total of 1.5 billion euros to electricity consumers over three years.

The avoided network charges are a form of compensation for decentralized generation facilities that feed electricity into the grid. This compensation is considered outdated, as it ultimately burdens consumers. The BNetzA argues that subsidizing power plants through these charges is no longer justified.

Planned Implementation

The abolition of the avoided network charges is to be carried out gradually. From January 1, 2026, the charges are to be reduced by 25 percent annually until they are completely eliminated by 2029. This gradual approach is intended to give operators of decentralized facilities sufficient time to adjust to the new conditions.

Impact on Consumers and Investors

The planned abolition of the avoided network charges will have significant impacts on electricity prices, which could subsequently reduce the financial burden on consumers. Such measures are of interest to private investors and savers, as they indirectly influence energy costs and can thus affect investment decisions.

Consultation Procedure

The draft regulation for the abolition of avoided network charges has been put out for consultation. Interested parties can submit comments until May 23, 2025. This procedure is part of the effort to adapt the energy economic framework conditions to changing needs and relieve network charge payers of unjustified costs.