Network Charges in Germany: Rising Costs, Competitive Implications, and Reform Potential

March 4, 2025 The German electricity market currently faces a significant challenge: despite moments of abundant renewable generation pushing wholesale prices to near-zero levels, consumer prices remain stubbornly high due to substantial network charges and other levies. This comprehensive analysis explores the evolution of German network charges (Netzentgelte), their impact on national competitiveness, and potential paths forward for structural reform.