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German Household Electricity Prices Fall as Grid Fees Are Cut

A €6.5 billion cut to grid fees is driving the decline.

Overview

  • Laut BDEW sank der durchschnittliche Haushaltsstrompreis im Januar 2026 auf 37.2 cents per kilowatt-hour, down from over 40 cents a year earlier.
  • Transmission charges fell from roughly 11 to 9.3 cents per kWh due to the federal €6.5 billion subsidy, identified as the main driver of the relief.
  • Verivox recorded 307 announced electricity and 192 gas price reductions by regional basic suppliers nationwide heading into the new year.
  • Saxony shows the largest regional savings, with average basic-supply cuts of about 8.5% and an estimated €143 annual reduction for a 3-person, 4,000 kWh household.
  • Regional utilities report concrete moves: SachsenEnergie cut up to 4.24 cents/kWh, enviaM and MITGAS lowered tariffs, and Eins Energie plans reductions from March 1, while overall prices remain high in Europe with taxes/levies steady at 12.6 cents/kWh and procurement/sales costs about 15.4 cents.