Sector Report of the Monopolies Commission
Bonn, 4 November 2025 – The Monopolies Commission calls for stronger efforts to modernise Germany’s energy systems. “Only by addressing the root causes of high energy prices can we achieve lasting progress. Symptom relief alone is not enough,” said Tomaso Duso, Chair of the Monopolies Commission. The Monopolies Commission today presented its 10th Energy Sector Report to the Federal Ministry of Economics. The report offers recommendations for future-proof energy systems covering electricity, district heating, gas and charging infrastructure for electric mobility. According to the Commission, greater efficiency and stronger competition are crucial for a successful energy transition. The Monopolies Commission is an independent advisory body that counsels the Federal Government on matters of competition policy.
ELECTRICITY
For electricity networks, the Monopolies Commission advocates the introduction of dynamic grid charges and consistent digitalisation. “At present, the system rewards behaviour that pushes networks to their limits. With dynamic grid charges, generation and consumption can be guided by price signals – effectively creating a happy hour for electricity use,” explained Duso. Electricity grids are increasingly operating at capacity. The growing share of renewable generation and rising consumption are leading to severe fluctuations – overloads and bottlenecks vary by time of day and region. Current grid charges offer few incentives for using existing capacities smartly. As a result, inexpensive wind and solar power in the North is curtailed, while costly gas and coal plants in the South are ramped up. Dynamic grid charges would allow generation and consumption to adapt more flexibly to the grid both regionally and over time. However, this requires consistent digitalisation of the grid infrastructure. “Only by decisively advancing both – the digitalisation of the grids and the reform of grid charges – can the energy transition be made efficient,” said Duso.
Possible alternatives to dynamic grid charges include electricity price zones and nodal pricing systems, though these are considered politically difficult to implement.
CHARGING INFRASTRUCTURE
Electric mobility is a key component of the energy transition. Lack of competition in the expansion of the charging infrastructure and non-transparent charging prices mean that many drivers end up paying too much. The Monopolies Commission therefore welcomes progress toward the creation of a price transparency body for ad hoc charging and recommends promoting competition through tenders for municipal spaces.
Particularly critical is the expansion of charging stations for electric trucks along motorways. “There must not be a charging monopoly for Tank & Rast GmbH along the motorways,” warned Duso. Background: around two-thirds of the planned motorway charging parks have been awarded directly to this company without a tendering process.
DISTRICT HEATING
The Federal Government aims to supply 30 percent of households with district heating by 2045 and fully decarbonise the sector. “This will only succeed if district heating remains affordable. Currently, local monopolists can push up prices for consumers,” Duso said. As gas and oil heating become less competitive, market pressure on district heating providers is declining. The Monopolies Commission therefore recommends establishing a mandatory transparency platform, introducing a low-bureaucracy benchmarking system to cap prices, and creating access rules for larger heating networks to foster competition both in and around district heating systems. Only in this way can district heating become a key pillar of the energy transition.
GAS
The gas network is also facing structural change: the use of gas as an energy source is to be completely phased out by 2045 at the latest. But what will happen to the gas networks once they are no longer needed? Without early political action, high network costs threaten to fall on the remaining customers. It is currently unclear who will finance the decommissioning or dismantling of the gas networks. “We need targeted decommissioning of gas networks and binding plans from network operators to give all parties planning certainty. They should already be obliged to do so today,” said Tomaso Duso. This would be the most efficient solution.
Looking at the energy system as a whole, Duso emphasised: “The energy transition can only succeed if people are brought along. Our recommendations outline a clear roadmap for a future-proof energy system in Germany. Competition and efficiency can address the current problems.”
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Sector Report Energy 2025 - full version (in German)