Germany's new network tariff rules take shape – draft determination for future network tariff regulation published

On 6 August 2026, the regulator published a draft determination setting out the future framework for electricity network tariff regulation. The draft determination contains substantial changes to the existing legal framework. For the first time ever, the feed-in of electricity will be subject to the tariff system and capacity tariffs will apply to storages and electrolysers. The final determination is set to enter into force on 1 January 2027 after a consultation period until mid-September 2026. 

Background

As part of the implementation of the 2021 ruling by the European Court of Justice ("ECJ") regarding the independence of the national regulator, the German legislator has decided to repeal the current electricity network tariff regulation effective on 31 December 2028. The redesign of the future electricity network tariff regulation from 2029 onwards is now the sole responsibility of the German Federal Network Agency (Bundesnetzagentur, "BNetzA"). The BNetzA launched a reform process in May 2025 ("AgNes"), in which it proposed substantial changes to the current electricity network tariff system that has been in place for more than 20 years¹. After a recent public interim consultation of its considerations², the BNetzA has now published its draft for the final determination (“AgNes Draft Determination”)³ which in particular provides for the following key changes: It revises the existing financing tariffs for consumption (Verbrauchsentgelte)⁴, introduces new capacity-based feed-in tariffs (kapazitätsbasierte Einspeiseentgelte) for operators of generating plants⁵, and introduces capacity tariffs (Kapazitätsentgelte) for storage facilities⁶ and for electrolysers⁷. In addition, the AgNes Draft Determination sets the framework for the introduction of dynamic tariffs⁸. 

Revision of Network Tariffs for Consumption

As the current electricity network tariff regulation's repeal will take effect on 31 December 2028, the AgNeS Draft Determination establishes a new framework for consumption tariffs. It distinguishes two models. Smaller end consumers on the low-voltage level with an annual withdrawal of up to 100,000 kWh will be charged under a basic tariff model (Grundmodell), consisting of a fixed price component (Grundpreis) and a demand-based price component (Arbeitspreis).

Larger end consumers whose annual withdrawal exceeds 100,000 kWh on the low-voltage level or who are connected at the medium or high-voltage level will be charged under an ordered capacity model (Bestellkapazitätsmodell). Under this model, each consumer orders an annual capacity (Bestellkapazität), to which a capacity price applies. In addition, two demand-based price components apply: a lower rate for consumption within the ordered capacity and a higher rate of 200 to 350 per cent. of the lower rate for any consumption exceeding it⁹.

Capacity-based Feed-in Tariffs for Electricity Suppliers

Under the AgNes Draft Determination, operators of generating plants with an installed capacity exceeding 30 kW will have to pay a feed-in tariff. The tariff is capacity-based and federally unified¹⁰.  The transmission system operators (“TSOs”) must calculate it annually and publish it by 15 October for the following year. The cost base consists of a fixed component (Grundkomponente) of EUR 0.50 per MWh of annual fed-in energy, plus half of the TSOs’ balancing energy costs and half of their loss energy costs. These costs are then allocated to the obliged plant operators based on their contractually agreed feed-in capacity¹¹. 

Capacity Tariffs for Storage Facilities and Electrolysers

Operators of grid-connected storage facilities will pay an annual capacity tariff based on their contractually agreed network connection capacity. The tariff level equals the feed-in tariff for generating plants¹². It is foreseen that demand-based charges will not apply to energy that a storage facility draws from and feeds back into the grid, provided this can be metered separately. BNetzA intends to avoid double charges for both withdrawal and feed-in for storage operators.

Electrolysers producing green or low-carbon hydrogen will also start to pay a capacity-based network tariff under the AgNes Draft Determination. This tariff consists of a pure capacity price based on the agreed network connection capacity¹³.

New Dynamic Tariffs

The AgNes Draft Determination sets the framework for future dynamic network tariffs¹⁴. The details will be governed by a separate determination. Storage operators will be subject to dynamic tariffs no earlier than 1 January 2030 and by 1 January 2033 at the latest. Operators of generating plants will follow no earlier than 1 January 2032 and by 1 January 2035 at the latest. Offshore wind farms are exempt. The dynamic tariffs will vary by time and location. However, the obligation is subject to a key condition: the BNetzA must finalise the detailed rules at least two years before the respective start date¹⁵. If it does not, the obligation does not take effect. For the time being, the BNetzA will not apply dynamic tariffs to end consumers¹⁶. It does, however, reserve the right to introduce them for electrolysers at a later stage.

Grandfathering Rules

Protection of Trust

The AgNes Draft Determination includes protection of trust (Vertrauensschutz) provisions for existing assets and projects under development. The rules differ by asset class¹⁷. For generating plants, the new feed-in tariff will not apply until 20 years after commissioning, provided the plant was either already in operation before the determination was announced or a final investment decision (“FID”) was made before that date and the plant enters into operation by 4 August 2029. For storage facilities, the existing exemption¹⁸ from network tariffs under section 118 para. 6 EnWG will continue for all plants for which an FID was made before the determination became effective. The same applies to electrolysers. Across all three asset classes, operators must demonstrate that the FID was made by providing appropriate evidence to the relevant network operator by 31 March 2027. The FID is defined as having placed binding component orders covering at least half of the total investment volume, where the underlying contracts cannot be terminated without material financial loss¹⁹. Contrary to earlier considerations by the BNetzA, a binding grid connection commitment is no longer a requirement.

Transitional Provisions for Individual Network Tariffs for Industry

Under the AgNes Draft Determination, the current reduced network tariffs for large-scale industrial consumers will no longer be available on a permanent basis²⁰. Instead the regimes for atypical grid usage²¹ and the base-load privilege (Bandlastprivileg)²² will only apply transitional until 31 December 2031. The reduced tariffs for atypical grid usage may continue if the end consumer had an individual network tariff agreement in place by 31 December 2028, its average annual withdrawal between 2024 and 2027 exceeded 10 GWh, and it met the tariff requirements at least once between 2026 and 2028²³. Pumped-storage hydropower plants are excluded. The base-load privilege can also continue on the same transitional basis. The qualifying conditions are the same, except that there is no 10 GWh threshold and no exclusion for pumped-storage hydropower²⁴. Afterwards these privileges will no longer be available for large-scale industrial consumers.

Next Steps

The AgNes Draft Determination is now open to public consultation until 18 September 2026. The draft is set to be finalised by the end of 2026 and the determination is set to become effective on 1 January 2027 onwards. The stakeholders then have a two-year preparation period until the AgNes determination will start to apply in 2029. The BNetzA will also conclude a number of sub-determinations to the AgNes framework determination in 2027. Those may concern the details on dynamic network tariffs, including a regulation for Flexible Connection Agreements (“FCA”), and a regulation for building cost subsidies.

^{1 See Discussion Paper BNetzA: Diskussionspapier – Rahmenfestlegung der Allgemeinen Netzentgeltsystematik Strom (AgNes) – Stand: Mai 2025, available at: https://www.bundesnetzagentur.de/DE/Beschlusskammern/1_GZ/GBK-GZ/2025/GBK-25-01-1x3_AgNes/Downloads/Diskussionspapier_AgNes.pdf?__blob=publicationFile&v=9 (last accessed 2 June 2026); for further information please refer to our Client Alert on the “German Energy Transition - The impact of future electricity network tariff regulation”, available at: https://www.whitecase.com/insight-alert/german-energy-transition-impact-future-electricity-network-tariff-regulation?s=agnes (last accessed 2 June 2026).
2 See Presentation BNetzA: Vorläufiger Meinungsstand im Festlegungsverfahren AgNes – Aktueller Stand der Überlegungen – 27. Mai 2026, available at: https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/20260527_AgnesKurzInfo.pdf?__blob=publicationFile&v=3 (last accessed 12 August 2026) and the Background Paper BNetzA: Hintergrundpapier vom 27. Mai 2026, available at: https://www.bundesnetzagentur.de/SharedDocs/Pressemitteilungen/20260527_AgnesPapier.pdf?__blob=publicationFile&v=1 (last accessed 12 August 2026); for further information please refer to our Client Alert “Update on future German network tariff regulation and its impact on BESS”, available at: https://www.whitecase.com/insight-alert/update-future-german-network-tariff-regulation-and-its-impact-bess (last accessed 12 August 2026).
3 See BNetzA – Entwurf eines Beschlusses wegen des Verfahrens zur Festlegung der allgemeinen Netzentgeltsystematik für die Elektrizitätsversorgungsnetze – Geschäftszeichen GBK-25-01-1#3. 
4 See no. 8 of the AgNes Draft Determination
5 See no. 9 of the AgNes Draft Determination
6 See no. 10 of the AgNes Draft Determination
7 See no. 11 of the AgNes Draft Determination
8 See no. 12 of the AgNes Draft Determination
9 See no. 8.5 of the AgNes Draft Determination
10 See no. 9.1 et seq. of the dr AgNes Draft Determination aft
11 See no. 9.3 of the AgNes Draft Determination
12 See no. 10.1 of the AgNes Draft Determination
13 See no. 11.1 of the AgNes Draft Determination
14 See no. 12.1 et seq. of the AgNes Draft Determination
15 See no. 12.3 et seq. of the AgNes Draft Determination
16 See no. 12.5 of the AgNes Draft Determination
17 See no. 17.4 et seqq. of the AgNes Draft Determination
18 See section 118 para. 6 EnWG
19 See no. 17.4 et seqq. of the AgNes Draft Determination
20 See section 19 para. 2 of the StromNEV
21 Section 19 para. 2 sentence 1 StromNEV
22 Section 19 para. 2 sentences 2 to 4 StromNEV
23 See no. 17.1 of the AgNes Draft Determination
24 See no. 17.2 of the draft}

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