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Germany’s January Power and Gas Costs Fall as Network Fees Drop

The regulator cites reduced network charges following a €6.5 billion federal payment as the key driver.

Overview

  • Household electricity for new customers averaged 34.87 cents per kWh in January, down 6.7% from December, while existing-customer rates were nearly unchanged at 34.88 cents, according to the Bundesnetzagentur.
  • Industrial power prices fell sharply, averaging 14.49 cents per kWh without discounts (down 12.9%) and 8.96 cents with discounts (down 12.6%).
  • Gas prices eased for new customers to 9.66 cents per kWh (down about 4%) and for existing customers to 10.56 cents (down about 2%).
  • The removal of the gas storage levy supported lower gas bills, though the legally mandated annual increase in the CO2 charge limited the decline.
  • Consumer-facing averages vary by methodology, with t-online reporting 23.8 cents per kWh gross for new electricity customers and outlining a 2026 cost mix of roughly 44% procurement, 27% network charges, and 29% taxes and levies.