Germany has to make extensive changes to its energy law following a ruling by the European Court of Justice. The highest European court upheld a lawsuit brought by the EU Commission against the Federal Republic in full. Accordingly, the requirements of the EU Electricity Directive and the EU Natural Gas Directive have not been properly implemented in Germany. In essence, it is about the role of the Federal Network Agency as a regulatory authority. It currently sets network charges on the basis of rules that have been decided by politicians. From the point of view of the EU Commission, it is not independent enough – it should be able to act at its own discretion.
The judgment should significantly strengthen the influence of the network agency, which is subordinate to the Federal Ministry of Economics. The federal government must now put the calculation of network charges on a new footing and redefine the role of the network agency. In the energy sector and municipal companies, there are fears that the regulator could develop a life of its own and make decisions that could be detrimental to the economy.