Germany Reduces Electricity Tax and Network Fees for Companies in Major Legislative Move

On November 14, 2025, the German Bundestag passed a significant law reducing the electricity tax for companies, particularly targeting the manufacturing and agricultural sectors. The electricity tax has been cut to the EU minimum rate of 50 cents per megawatt-hour, providing tangible financial relief for businesses. Alongside this, the parliament approved a billion-euro subsidy for network operators aimed at lowering network fees for both companies and individuals, further reducing energy costs across the board.

Additionally, the legislation includes reductions in railway usage fees to avoid ticket price hikes for Deutsche Bahn customers. However, opposition parties criticized the government coalition for not extending immediate relief measures to households, which had been previously promised in coalition agreements but were withheld pending financial evaluations.

The law package also covers other regulatory topics such as restrictions on nitrous oxide sales and possession by minors, including a ban on online sales and sales via self-service machines.

These measures reflect Germany's effort to support its corporate sector amid economic challenges by alleviating energy-related burdens. The approval of both tax reductions and subsidies showcases a comprehensive approach to facilitating business operations and maintaining consumer protections in transport pricing.