Draft Law to Amend Energy Law in the Areas of End-Consumer Markets, Grid Expansion, and Grid Regulation
20/14199: Draft Law to Amend the Energy Industry Act in the Area of End-Consumer Markets, Grid Expansion, and Grid Regulation (PDF)
Publication Date: 2024-12-13 11:00
Abstract:
The German government has proposed a draft law to amend the Energy Industry Act (EnWG) in the areas of end-consumer markets, grid expansion, and grid regulation. The proposed amendments aim to:
- Strengthen consumer protection: Improve transparency and comparability of energy prices, provide more options for switching energy providers, and enhance protection against unfair contract terms.
- Accelerate grid expansion: Streamline planning and approval processes for grid infrastructure, including high-voltage power lines and gas pipelines.
- Reform grid regulation: Update the regulatory framework for electricity and gas grids, including measures to promote competition and innovation.
Key Provisions:
End-Consumer Markets:
- Introduction of a “right to switch” energy providers within 14 days
- Establishment of an independent price comparison platform
- Prohibition of certain types of unfair contract terms
- Enhanced consumer information and awareness campaigns
Grid Expansion:
- Streamlining of approval processes for grid infrastructure projects
- Introduction of a “fast-track” procedure for projects of national importance
- Simplified land acquisition procedures
Grid Regulation:
- Reform of the grid fee structure to promote competition and innovation
- Introduction of a capacity market to ensure grid stability
- Strengthening of the regulatory authority’s oversight powers
Next Steps:
The draft law is currently undergoing public consultation. The German Bundestag (lower house of parliament) is expected to debate and vote on the law in 2025. If passed, the amendments would come into force in 2026.
Significance:
The proposed amendments to the Energy Industry Act represent a significant step in the German government’s efforts to transform the energy sector. By strengthening consumer protection, accelerating grid expansion, and reforming grid regulation, the law aims to create a more efficient, competitive, and sustainable energy system.
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