Network Charges Reform: The Federal Network Agency's AgNes Process

Why network charges are being reformed

Network charges pay for building, operating and maintaining electricity grids. According to the Federal Network Agency (Bundesnetzagentur, BNetzA), they amount to about EUR 37 billion a year and make up about 30% of a household's electricity costs. The rules for distributing these costs among network users date largely from the Electricity Network Charges Ordinance (Stromnetzentgeltverordnung, StromNEV) of 2005. Since then, the energy system has changed fundamentally: generation is increasingly decentralised and volatile, connection capacity is scarce, and costs for grid expansion and congestion management are rising.

A legal trigger forced the change. In its judgment of 2 September 2021 in Case C-718/18, Commission v Germany, the Court of Justice found that Germany had not given the national regulator the exclusive competence required by EU law to determine network access conditions and tariff methodologies. Germany responded by transferring these competences to the BNetzA. The ordinance-based rules on grid fees therefore expire at the end of 2028 and are being replaced by BNetzA determinations.

This article explains the AgNes process, the main changes proposed for different groups of network users, the timeline and what companies should do now.

The AgNes process and timeline

AgNes stands for Allgemeine Netzentgeltsystematik Strom – the general structure of electricity network charges. The BNetzA started the process in 2025, presented an interim status on 27 May 2026 and on 6 August 2026 began consulting its final draft determination. Stakeholders could comment until 18 September 2026. According to the BNetzA, the framework determination is to be adopted at the end of 2026, followed by more detailed determinations in 2027. It replaces the StromNEV, which expires on 31 December 2028.

The legal basis is the BNetzA's competence under § 21 EnWG and related provisions to set conditions and methods for grid fees. They must be appropriate, non-discriminatory and transparent, and based on the costs of an efficient operator. The BNetzA has stressed that the reform concerns the distribution of costs; efficiency and the level of allowed revenue are dealt with separately in the incentive regulation process.

Network charges for large consumers

For consumers with an annual consumption above 100,000 kWh, the BNetzA's interim status of May 2026 proposes replacing today's demand charge, which is based on the annual peak load, with a capacity price in euros per kW per year for booked capacity. Consumption up to the booked capacity is subject to an energy price in cents per kWh; consumption above it triggers a surcharge. The aim is to remove economic barriers to increased consumption at times of very low electricity prices and to encourage flexibility.

Under the current system, a single peak in consumption can raise grid fees for the whole year, which discourages companies from increasing consumption when renewable electricity is abundant. The new structure would make it easier to respond to price signals, for example by running electric boilers or electrolysers when prices are low. Companies will, however, need to decide how much capacity to book, which requires good load forecasting and, for many companies, new internal processes for energy management.

Industrial special charges

Many energy-intensive companies benefit from individual network charges under § 19(2) StromNEV, either for atypical network use or for steady band-load consumption of at least 7,000 hours a year. Band-load discounts reward constant consumption, which conflicts with the goal of flexibility.

According to the BNetzA, the framework determination will contain basic rules and transitional provisions: the band-load rule is extended for existing customers until 31 December 2031, and the current discount structure for atypical network use is retained for large consumers on a transitional basis. The future design for industrial consumers is to be decided at the beginning of 2027, taking into account pilot projects running until the end of 2026.

Generators and storage

Today, generators pay no grid fees for feeding electricity into the grid. The BNetzA intends to change this: generators would contribute through a limited annual capacity price, expected initially at EUR 4 to 7 per kW per year. Existing plants would be exempt for 20 years from their first commissioning. According to the BNetzA, such a charge would hardly affect market prices but could contribute up to EUR 2 billion a year to network costs over time. Plug-in solar devices and prosumers are not affected.

Storage operators – batteries and pumped storage – would also contribute through a moderate capacity price similar to that for generators, but would not pay energy-based charges. This reflects their role as providers of flexibility. Currently, storage facilities commissioned by 4 August 2029 benefit from an exemption from grid fees for electricity withdrawn for storage for a period after commissioning under § 118(6) EnWG. Investors in battery projects should model the transition carefully; our article on battery storage projects covers the business case.

Grid connection scarcity

The reform is closely connected with the scarcity of grid connection capacity. Network operators receive far more connection requests for storage, data centres and large loads than they can serve. Pricing capacity – for consumers through booked capacity, for generators and storage through a capacity-based charge – is meant to encourage efficient use of scarce capacity. Companies planning new connections should consider how the capacity they request will translate into future charges, and whether flexible connection agreements could reduce both connection times and costs.

Electrolysers

Electrolysers are a further group whose grid fees matter greatly for their business case. Exemptions and special rules exist today; how they fit into the new system will be part of the detailed determinations. Hydrogen project developers should follow the consultation closely, as the outcome will affect the cost of producing hydrogen from grid electricity and the location choice for electrolysers.

Households and prosumers

For around 40 million household customers on the low-voltage level, little changes in structure: the network charge continues to consist of a standing charge per year and an energy price per kWh. However, the BNetzA proposes binding rules for standing charges, including a capped standing charge. Consumers who generate their own electricity, for example with a rooftop PV system, and therefore draw less from the grid would pay a higher standing charge, according to the BNetzA probably less than EUR 100 a year depending on the location. Plug-in solar devices are exempt.

For commercial property owners and landlords offering tenant electricity models, these changes affect the economics of on-site generation. Our article on direct lines and customer installations discusses on-site supply models.

Network charges in contracts and transactions

The reform has consequences well beyond tariff sheets. Electricity supply contracts for commercial and industrial customers typically treat network charges as a pass-through item, sometimes with detailed definitions that refer to the components of the StromNEV, such as the demand charge or individual network charges under § 19 StromNEV. Once the ordinance expires, such references may become unclear. Long-term contracts running beyond 2028 should therefore be reviewed and, where necessary, amended to refer to charges under whatever regulatory framework applies, with a mechanism for structural changes.

Power purchase agreements and on-site supply arrangements raise similar questions. A PPA with physical delivery through the public grid may allocate grid costs to the buyer; a sleeved PPA may involve a supplier who passes on grid costs; an on-site model may avoid them partly. The introduction of capacity-based charges for generators and storage adds a new cost item on the seller side. Contracts should specify who bears new charges introduced after signing.

Due diligence

In acquisitions of energy-intensive companies or energy projects, buyers should analyse the target's current grid fees, any special charges and their legal basis, the expected impact of the reform and the contractual allocation of future changes. A business case built on band-load discounts or on exemptions for storage may change materially after 2028 or 2031. Valuation models should reflect these scenarios.

Municipal utilities and network operators

Distribution network operators must implement the new structure in their price sheets, billing systems and customer contracts. They also need to communicate changes to customers early, as large consumers will have to book capacity. Utilities that act both as network operators and suppliers should ensure that unbundling rules are respected in customer communication.

What companies should do now

The new network charges will apply from 2029, but investment decisions taken now will be affected. Companies should analyse their load profile and estimate the impact of a capacity price and the end of band-load discounts. Energy-intensive companies relying on special charges should assess the transitional period to 2031 and whether flexibility investments could reduce future charges. Developers of generation, storage and electrolysis projects should model capacity-based charges and secure contractual protection.

Companies should also review electricity supply and grid connection contracts. Supply contracts often pass grid fees through to the customer; changes in structure may require adjustments. Grid connection agreements may need to address booked capacity. Where companies participate in the consultation of follow-up determinations in 2027, well-founded data on their load profile and flexibility potential will carry more weight than general objections.

Legal protection

BNetzA determinations can be challenged by appeal to the Higher Regional Court of Düsseldorf. Because the framework determination affects many market participants, appeals by associations and individual companies are possible. Deadlines are short – generally one month after service or publication – so affected companies should evaluate the final determination promptly once it is published.

How TRW & Co helps with network charges

We advise industrial companies, generators, storage operators, hydrogen developers and network operators on network charges and the AgNes reform. We analyse the impact of the new structure, prepare comments in consultation procedures, review supply and grid connection contracts, structure flexibility and storage projects, and represent clients in appeals before the Higher Regional Court of Düsseldorf and the Federal Court of Justice. Our work connects with our grids and EnWG, energy and utilities and manufacturing teams. Please contact us. This article is general information and not legal advice.