VDA Statement regarding the draft law of the Federal Ministry for Economic Affairs and Energy to reduce network charges

    VDA Statement regarding the draft law of the Federal Ministry for Economic Affairs and Energy to reduce network charges

    VDA President Hildegard Müller regarding the draft law of the Federal Ministry for Economic Affairs and Energy to reduce network charges

    Stetement

    Berlin, August 27, 2025

    VDA President Hildegard Müller:

    "The fact that the current draft legislation by the Federal Ministry for Economics Affairs and Energy on network charge relief does not provide for any funding beyond 2026 clearly contradicts the coalition agreement. This agreement proposes a permanent reduction in electricity prices for businesses and consumers—and that is precisely what must happen.

    The fact is: Manufacturers and suppliers in the German automotive industry pay significantly higher energy and electricity prices than their competitors internationally. Electricity prices in Germany are up to three times higher than in the US or China, for example—a significant competitive disadvantage that places an additional burden on companies in the transformation process.

    A key cost driver is network charges, which now account for a considerable and growing share of electricity costs. Temporary government co-financing of network charges is therefore fundamentally welcome.  

    We expect the federal government to provide clarity on the financing of network charges as soon as possible. A binding relief must be established beyond 2026, and it has to be passed on to consumers guaranteed by law. Furthermore, the cap on network charges announced in the coalition agreement must be implemented immediately. The coalition must also urgently improve the electricity tax reduction for all consumers and the industrial electricity price and present a binding roadmap.

    In addition to short-term and targeted measures, fundamental reforms are also needed to bring energy and electricity prices back to a competitive level. Only in this way Germany can assert itself as a business location in international competition."
     

    Press Office

    Felicia Fullbrecht

    Spokesperson