UPDATE!

The ElWG was passed on December 11th, 2025, with the necessary constitutional majority. With the amendment motion, the following changes, among others, were adopted:

• Climate neutrality 2040 anchored;
• Additional target groups to benefit from the social tariff;
• As of January 1st, 2027, feeders are to pay an annual supply infrastructure contribution not exceeding 0.05 cents per kWh of the annual amount of electricity fed into the grid;
• Feeders with a grid-effective capacity of up to 20 kW are exempt from this;
• The amount is to be collected by the grid operators;
• Peak capping must not exceed 1% of the annual energy generated (originally 2% was planned).

On the government bill

The new draft of the Electricity Industry Act (ElWG) went into the next round on November 18th. The federal government approved it in the Council of Ministers, and the responsible parliamentary committee gave its approval as well, though still without the required two‑thirds majority.

We have already dealt in detail with the draft version from July and covered both the new provisions in the areas of energy storage and community energy as well as those relating to system usage charges and peer-to-peer contracts.

In the following article, we focus on the innovations in the November draft and, in particular, on the provisions of the current draft that have been widely criticized yet remain largely unchanged.

Community energy – new structure, little new substance

The new draft restructures the previous provisions on active customers, energy communities, and shared energy use. Although the reorganization brings a clearer system, it does not address the adjustments requested in many comments on the ministerial draft.

Particularly in the area of community generation facilities and billing logic, more practical regulations had been expected. The disappointment is palpable: The criticism that the legal framework is highly technical and too complex for many smaller communities was acknowledged, but not mitigated.

New 6 MW threshold

One of the visible innovations concerns the threshold for the possibility of participating in shared energy use. In the ministerial draft, it was still stipulated that each active customer may only participate in shared energy use with electricity generation facilities up to a maximum capacity of 6 MW. In the new draft, however, this 6 MW limit now only applies to a limited extent, making it possible for larger plants to participate.

In addition, the previous requirement for large companies to be located in the regional area no longer applies. It is now sufficient for these companies to be located anywhere within the federal territory.

Many expectations unfulfilled – less change than hoped for

The number and quality of comments from the relevant industries on the July draft was exceptionally high. Accordingly, the expectations for significant tightening were high. However, the current draft remains comparatively cautious.

Key points of criticism were addressed, but hardly mitigated at the normative level. Particularly affected are:

• the complex determination of system usage fees,
• the treatment of feeders,
• the specifications on peak capping, and
• the design of flexibility mechanisms.

The concern that structural problems of the energy transition are being managed rather than solved continues to accompany the draft.

Peak capping (section 101)

The rules limiting feed-in are intended to cushion grid bottlenecks, but remain caught between network security and the economic viability of generation facilities. The more precise delineation between technical necessity and economic reasonableness, which was frequently demanded, did not take place.

Network usage fees (section 128)

Section 128(2) stipulates that feeders must also pay network usage fees if they use line-bound network services. This provision was viewed particularly critically in the comments, as it makes investments, especially for small PV systems, significantly less attractive. Nevertheless, the provision remained essentially unchanged.

Fallback supply and supported prices

In the area of end-customer supply, the provisions on fallback supply (section 31) and on supported prices for eligible households (section 36) have been clarified.

The structure, however, remains largely unchanged: Fallback supply serves as a safety net in the event of supplier failures, while section 36 establishes a price support model for “eligible households.” The mechanics have been formally refined without altering the basic system.

New: exemption for the first 7 kW

One significant change, which has so far received little attention in the political discourse, concerns the exemption of the first 7 kW in the calculation of certain grid-related fee components. The aim is to relieve the burden on small feeders.

Conclusion

The new draft of the ElWG shows movement, but falls well short of the expectations of many market players. The structural revision, particularly in the area of community energy, provides order but is not transformative. Key points of criticism were either not addressed or only formally adjusted.

For practice, the following picture emerges:

• The legal framework is more clearly structured.
• Many economically relevant regulations remain unchanged.
• Small facilities benefit in specific cases (7 kW exemption).
• Significant investment barriers (feed-in charges, peak capping) remain in place..

Whether the “Cheaper Electricity Act” lives up to its name will depend less on the text of the law than on its implementation and future regulatory practice.

We remain attentive and will continue to keep you informed!

Disclaimer

This article is for general information only and does not replace legal advice. Haslinger / Nagele Rechtsanwälte GmbH assumes no liability for the content and correctness of this article.

 

9. December 2025

 

---

Go back to News