Temporary relief for operators and users of customer installations (“Kundenanlagen”)

As part of the current amendment to the Energy Industry Act (EnWG), the German Bundestag has adopted a regulation for temporary protection for customer installations (in German: Kundenanlagen) at the suggestion of the Committee on Economic Affairs and Energy. According to this provision, energy systems that fall under the definition of customer installations and were connected to an energy supply network before the amendment came into force will remain exempt from regulations governing energy supply networks until 31 December 2028. This means that operators of such systems will not have to fulfil the extensive obligations of a network operator for the time being.

Background: uncertainty following court rulings

The draft (Printed Matter of the German Bundestag, BT-Drs. 21/2793) thus responds to rulings by the European Court of Justice (ECJ) and the German Federal Court of Justice (BGH) (we reported). Both courts had ruled that the German regulation on so-called customer installations in Section 3 No. 24a EnWG, according to which certain energy systems were exempt from the extensive regulation of energy supply networks, was not compatible with EU law or had to be interpreted in accordance with the directive. The scope of application of the regulation is thus considerably restricted.

However, there was considerable uncertainty because the BGH considered that Section 3 No. 24a EnWG could be interpreted in accordance with the directive and thus continued to see a scope of application for the regulation. However, the BGH did not significantly limit this remaining scope and merely cited domestic installations of home owners' associations (in German: Wohnungseigentümergemeinschaften), in which no electricity intended for sale is transmitted, as a possible example of a customer installation under Section 3 No. 24a EnWG.

Protections according to the draft of the Committee on Energy and Economy

The amendment to the EnWG proposed by the Committee on Energy and Industry, which was adopted and passed by the German Bundestag on 13 November 2025, now provides in Section 118(7) EnWG for temporary protection for systems connected to an energy supply network before the law came into force. Regulations governing energy supply networks will only apply to these plants from 1 January 2029.

The main aim of this provision is to give the legislator additional time: according to the explanatory memorandum, the provision is intended to enable the necessary adjustments to the national legal framework to be made with the participation of all stakeholders and, where appropriate, the European Commission. On the other hand, operators of existing installations for which adaptation to the regulatory requirements of a network operator appears possible should have enough time to adjust to the new legal situation and make the necessary structural adjustments. As possible adjustments, the explanatory memorandum suggests transferring such energy installations to the upstream network operator or transferring their operational management to him as a lessee or service provider.

At the same time, the explanatory memorandum makes it clear that there will still be a scope of application for customer installations under the EnWG. The explanatory memorandum assumes that in-building distribution systems (in German: Hausverteilanlagen) in particular can continue to be regarded as customer installations, but regards other differentiation problems as unresolved.

Outlook: Final regulation remains open

The present amendment is only a temporary solution. It applies only to energy systems that are already connected and therefore does not apply to new projects, which does not help the desired expansion of tenant photovoltaic projects and other decentralised supply projects. It is also unclear whether changes or extensions to energy systems would result in the loss of existing protections.

On the other hand, the protections are temporary and are intended to give legislators time to create a final regulation for customer installations. Whether this transitional solution is compatible with EU law is itself subject to risks in view of the far-reaching ECJ decision. Also, the latest amendment does not clarify how a long-term regulation for customer installations will be designed.