Update on AgNes proceedings

The German Federal Network Agency's (Bundesnetzagentur or BNetzA) Grand Ruling Chamber for Energy published the agency's latest considerations on a new overall framework for the network tariff system on 27 May 2026 as part of the so-called "AgNes" proceedings ("Allgemeine Netzentgeltsystematik Strom" or "general network tariff system for electricity"). The framework is set to go into effect when the German Electricity Grid Charges Ordinance (StromNEV) ceases to apply on 31 December 2028. The Federal Network Agency still maintains the fundamental considerations it has expressed previously (see the Federal Network Agency's discussion papers and points of orientation in the AgNes proceedings that have already been published), though reforms have been made concerning electricity storage facilities and protection of legitimate expectations in particular. In addition, the Federal Network Agency intends to introduce extended implementation deadlines for subsequent determinations in some cases. However, the Federal Network Agency is still yet to publish a draft determination.

Background to the AgNes proceedings: ECJ judgment on the role of the Federal Network Agency

The AgNes proceedings were triggered by a judgment by the European Court of Justice (ECJ) from 2021 (judgment dated 2 September 2021 – C-718/18). The ECJ decided that the previous provisions in the ordinances on incentive regulation (e.g. StromNEV, ARegV) violate the competences established in the European Directive concerning the internal market in electricity (Directive 2009/72/EC). It held that the Federal Network Agency as a regulatory authority did not have sufficient discretion with regard to determining the conditions for network connection and access as well as the applicable tariffs and therefore was not sufficiently independent.

As a result of the judgment, German law makers passed the 2023 amendment to the German Energy Act (EnWG), suspending the federal government's authorisation to issue ordinances and instead granting the Federal Network Agency the authority to determine tariffs. The German Electricity Grid Charges Ordinance (StromNEV), which has governed the formation of network tariffs to date, will therefore cease to apply after 31 December 2028 and has to be replaced with specifications made by the Federal Network Agency. 

The AgNes proceedings are a key part of the revised provisions along with the NEST ("Networks. Efficient. Safe. Transformed.") process, which the Federal Network Agency adopted in December 2025 with the publication of the final determinations to revise the ordinance on incentive regulations.

Framework conditions amended on account of the energy transition

The amended framework conditions will play an important part in determining the new network tariff system on account of the progressing energy transition. The network tariff system must be adapted in response to the increasing decentralised feed-in from renewable energy, new sources of flexibility such as storage facilities, the behaviour of prosumers, increasing energy generation by industrial, commercial and domestic stakeholders for their own use and rising network costs. At higher voltage levels, increased demand due to the electrification of production processes and the addition of electrolysers to the network must be taken into consideration. At the low-voltage level, e-mobility and heat pumps are also likely to cause additional, increasingly simultaneous consumption. 

The costs of the network are currently borne solely by the network users consuming the energy. They are based on the costs that the network operators incur operating, maintaining and expanding the networks. The Federal Network Agency now wants network operators, operators of storage facilities and electrolysers, operators of power generation installations, electricity traders and aggregators to share in the responsibility.

The aim of the AgNes proceedings is therefore to determine a non-discriminatory network tariff system that ensures that networks are funded while also providing incentives for behaviour that benefits the networks and the overall system. 

Course of AgNes proceedings to date

The AgNes proceedings were opened by the Federal Network Agency's Grand Ruling Chamber for Energy on 12 May 2025 (GBK-25-01-1#3). On opening the proceedings, the Federal Network Agency published a discussion paper analysing the status quo of how electricity network tariffs are formed on the one hand and putting forward potential options for adaptation on the other. The following topics in particular were addressed:

• Feed-in producers sharing the network costs by paying feed-in tariffs (in contravention of section 15 (1) second sentence German Electricity Grid Charges Ordinance (StromNEV)) and/or contributions towards network costs (in tension with section 17 German Renewable Energy Sources Act (EEG));
• Introducing fee components (mandatory standing rate, performance price replaced with a capacity-based price);
• Dynamic pricing of network tariffs;
• Compensating for exceptional regional charges by completely aligning the network tariffs across distributor networks;
• A follow-up regulation for storage facility tariffs;
• Pooling network and transformation levels as a cost centre and adjusting cost cascading.

The Federal Network Agency subsequently published a whole range of subject specific points of orientation, in which it addressed these issues in more detail and prepared specific questions to be discussed when sharing knowledge with experts and at industry workshops (particularly on dynamic network tariff components, storage network tariffs, injection tariffs, cost cascading and industry network tariffs).

The background paper that has now been published and the presentation of the basic principles at the corresponding information event are intended to summarise the considerations to date and establish a standardised system for network tariffs.

Basic network tariff system under AgNes: Tariff components with financing function and with incentive function

At the heart of the future system of network tariffs is the distinction between tariff components with a financing function and tariff components with an incentive function. Tariff components with a financing function are intended to refinance network costs sufficiently and avoid disincentives as much as possible, while tariff components with an incentive function are intended to influence investment and deployment decisions with the aim of internalising more network cost effects. Besides this, metering, meter operation and ad hoc fees such as contributions towards network costs are expected to remain. 

With regard to tariff components with a financing function, the concept that has now been published in the AgNes proceedings matches the previous proposals from the Federal Network Agency. A model consisting of two network tariff components is to be introduced for consumers at the medium/low voltage transformer level or above and consumers in low voltages with a consumption of more than 100,000 kWh: the previous performance price per kW is to be replaced with a capacity-based price in EUR/kW/year and a two-part energy-based price in cents/kWh. In this arrangement, amounts consumed within the ordered capacity are invoiced at the regular energy-based price, while amounts consumed above the ordered capacity incur a higher energy-based price, which as it currently stands is at least 200 % and at most 350 % of the regular energy-based price. In this case, the ordered capacity must not exceed the contractually agreed network connection capacity or fall below 10 % of the individual annual maximum load for the previous year. The previous situation of network tariffs known as "pancaking", the monthly performance price and the network reserve capacity are to be eliminated. The aim of this system is to push network users into making rational capacity orders. 

Consumers connected at low voltage-level with an annual consumption under 100,000 kWh are generally to stay on the same standing rate and energy-based price per kWh. For prosumers, however, the Federal Network Agency provides for an increase in the standing rate of between 70 % and 90 % to limit the self-consumption's effect of reducing solidarity. 

The incentive function is supposed to be developed using dynamic, time-variable and location-variable energy-based prices. The amounts and times of these dynamic components are to be specified the day before in 15-minute intervals and published before the day-ahead auction. The Federal Network Agency envisages introducing the dynamic components in stages, though this will not start in 2029 as originally planned. Dynamic network tariffs for electricity storage facilities with their own network connection at higher voltages are not scheduled to be introduced until 2030 at the earliest. Feed-in producers – with the exception of offshore wind turbine generators – are scheduled to be added from 2032 at the earliest and by 2035 at the latest.

From 2027, the Federal Network Agency wants to develop rules and regulations for contributions towards network costs for feed-in producers and the implementation of flexible connection agreements (FCAs).

AgNes proceedings: Particular features of tariffs for industrial and commercial users

Regarding the special tariffs for large industrial consumers, the Federal Network Agency has announced that after it has finalised the framework determination, it will publish a separate follow-up determination in 2027 that addresses the additional findings from the ongoing pilot projects. It is therefore expected that the AgNes proceedings will only adopt transitional provisions: The rules on permanent loads (section 19 (2) second sentence German Electricity Grid Charges Ordinance (StromNEV)) are to be extended for existing customers until 31 December 2031, while atypical network usage (section 19 (2) first sentence StromNEV) will not receive a general extension. Instead, it is envisaged that the discount structure will be maintained as a transitional measure for industrial final consumers that have a valid individual network tariff agreement on 31 December 2028 and whose consumption at the point of supply exceeds 10 GWh on average between 2024 and 2028.

Federal Network Agency's plans to introduce feed-in tariffs

The Federal Network Agency plans to suspend the previous network tariff exemption for generation installations in the future and include them as feed-in producers in the network tariffs. The payment obligation is to apply to generation installations with an installed gross capacity exceeding 30 kW according to the core energy market data register (Marktstammdatenregister). The initial plan is for an annual capacity-based price without an energy-based price element from 1 January 2029, which will be levied based on the contractually agreed network connection capacity. The charge is expected to be between 4 and 7 EUR/kW/year to begin with. 

To protect feed-in producers already in operation, the Federal Network Agency intends to establish rules on protection of legitimate expectations, which are to be informed by the previous statutory requirements under section 118 (6) German Energy Act (EnWG). Exemptions from the new network tariffs are to apply to: 

1. all generation installations that had already gone into operation before the AgNes determination came into effect; and 
2. those facilities for which a final investment decision (FID) was reached before the AgNes determination came into effect and which have then gone into operation by 4 August 2029 at the latest. 

The Federal Network Agency deems a final investment decision to have been reached if 

binding orders of components that cover approximately half the investment value are made, it is not possible to rescind the contracts closed for this purpose without significant financial loss and a binding network connection commitment has additionally been made. 

In calls for tenders, "the date of the tender deadline after which the submitted tender can no longer be rescinded" is to be decisive; any longer implementation deadline provided for in calls for tenders will determine the deadline for going into operation.

The rules on protection of legitimate expectations are to be limited to a fixed term of at most 20 years from when the facility first goes into operation. 

The rules on protection of legitimate expectations are crucial for operators of generation installations, since they have typically performed their cost calculation assuming a 20-year network tariff exemption. Based on the Federal Network Agency's current considerations, protection for facilities still in the planning stage will crucially depend on whether the FID has already been reached before the Federal Network Agency's determination comes into effect at the end of the year. There is therefore great anticipation in practice as to how exactly the FID criterion will be defined. For projects that were not scheduled to go into operation until later, the question arises as to whether the FID should be reached earlier than planned or the cost calculation needs to be redone to include payable network tariffs.

It also remains to be seen to what extent the Federal Network Agency will be prepared to grant protection of legitimate expectations for tariffs with an incentive function or dynamic network tariffs. The principles of protection of legitimate expectations that have been presented at any rate seem to relate explicitly only to tariffs with a financing function and suggest that the introduction of dynamic network tariffs is not expected to be included in the rules on protection of legitimate expectations.

Special features of storage facility network tariffs

Following the discussions as part of the expert workshops, the Federal Network Agency adapted the originally planned tariff system for operators of electricity storage facilities. According to this system, electricity storage facilities connected to networks – like generation installations – are to pay a capacity-based price in the future based on the contractual network connection capacity. The price is to be equal to that of the capacity-based tariff for feed-in producers, i.e. between 4 and 7 EUR/kW/year to begin with. This is to avoid double-charging (capacity-based tariff for feed-in and consuming power). Network tariffs are not to be levied per kWh.

Storage facilities connected to installations are to be treated in terms of the network tariff together with the final consumption or generation installation with which they are connected. Amounts that are consumed from the public grid supply and then fed back in are to be exempted from energy-based prices.

In another move contrary to previous announcements, the Federal Network Agency has now announced that the protection of legitimate expectations for storage facilities' network tariff privilege is to remain unchanged. Accordingly and based on section 118 (6) German Energy Act (EnWG), protection of legitimate expectations will be granted to 

1. storage facilities put into operation within 18 years after 4 August 2011 or 
2. storage facilities for which a final investment decision (FID) was reached before the AgNes determination came into effect and which are put into operation by 4 August 2029 at the latest. 
3. Storage facilities put into operation before 4 August 2011 or whose full exemption for ten years has already lapsed will not receive any protection of legitimate expectations.

As with feed-in producers, protection of legitimate expectations is limited to a fixed term: for newly built storage facilities it applies for a maximum of 20 years from when they first went into operation; for expanded pump storage it applies for a maximum of 10 years from when they were first expanded.

Like for operators of generation installations, the rules on protection of legitimate expectations for operators of storage facilities are of particular commercial importance. Storage facility operators have also typically assumed a 20-year network tariff exemption in their cost calculations. In this respect, storage facility operators are also faced with a decision as to whether the FID has to be reached earlier than planned or the cost calculation has to be redone to include payable network fees.

As with operators of generation installations, the question similarly remains as to whether protection of legitimate expectations will also be granted for tariffs with an incentive function. 

Electrolysers may be treated separately under European law

Because electrolysers as a user group may be treated separately under European law, the Federal Network Agency envisages a capacity-based tariff without a price per kWh for electrolysers for green and low-carbon hydrogen similar to that for storage facilities and feed-in producers. Other electrolysers by contrast are subject to the standard model for consumers, though they are to be given access to use the industrial network tariff system. The Federal Network Agency has also provided for rules on protection of legitimate expectations for electrolysers similar to those for storage facilities.

Cost allocation among network operators: Cost cascading by withdrawn final consumption

The cost allocation among network operators is also subject to new rules. Previously a local network operator's network tariff also included the costs of the upstream network levels ("upstream network tariffs"). This means that downstream network operators are essentially treated as end consumers. This causes regional differences in cost participation and tariff anomalies, particularly as a result of high proportions of distributed generation. In future, the upstream network costs are to be keyed to the electricity consumption of the connected final consumer ("cost cascading by withdrawn final consumption"). The total of all consumption by final consumers from the levels concerned and all levels downstream is decisive for calculating the costs.

The results in the AgNes proceedings have significant impact

The Federal Network Agency has now merged its previous considerations on a standardised concept for network tariffs for electricity from 2029 and presented its overall framework. The corresponding draft determinations on the AgNes proceedings are scheduled to be published for consultation in the summer of 2026. The proceedings are set to end in late 2026 when the final determination is issued.

The results of the AgNes proceedings will have significant impact on the implementation and financing of projects. All players are therefore excited to see how the AgNes proceedings continue, especially since the Federal Network Agency is not ruling out making further changes to the working document that has now been released. Particularly for project developers, operators and financiers, it is recommended that the potential cost effects be analysed at an early stage so that their strategies can be adapted to the new, changed framework conditions.

We will keep you up to date with further developments and are happy to answer your questions at any time.