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The 50Hertz CEO says that grid fees in Germany would cost $6.5 billion annually

The head of grid operator 50Hertz stated on Monday that plans by parties seeking to form Germany's new government to reduce electricity network fees could cost up to 6 billion euros per year.

According to an agreement document, the conservatives in Germany and the Social Democrats (SPD), to lower electricity prices, agreed to reduce electricity taxes for all consumers by half and to halve transmission network fees. This was a first step to permanently cap network fees.

In a press conference, CEO Stefan Kapferer stated that six billion euros was the amount needed to halve network fees for transmission system operators. He also said it was crucial to reduce the overall costs.

"Because on the long-term, it won't be easy to mobilise 6 billion Euros in subsidies each year," he said.

The highest electricity prices in Europe are in Germany, due in part to the high grid fees and levies that account for around 50% of total costs. Reporting by Tom Kaeckenhoff and Riham Alkousaa Editing by Miranda Murray

(source: Reuters)