How much does electricity cost in Germany - FINBER | Easy about finance in Germany (2024)

Germany is one of the countries in the world where electricity costs the most. In 2022, electricity prices have risen to extremely high levels.

The increase in electricity prices is due to several factors, including increased electricity consumption, rising wholesale prices and higher taxes on CO₂ emissions.

Prices are dropping significantly for new customers in 2023, which means that the savings potential from switching electricity suppliers is now at an all-time high. Prices for new customers are at the pre-crisis level.

In Germany, in an apartment building, two people on average consume 2000 kilowatt-hours of electricity per year, and in a single-apartment house - 3000 kilowatt hour. With an electricity price of 32 cents per kilowatt-hour (summer 2023), the annual cost of electricity is 640 or 960 euros, respectively.

In addition, if the house uses an electric hot water heater, electric heating or underfloor heating, this significantly increases energy consumption.

• With electric water heater

• Without electric water heater

Moving to a new apartment can be quite stressful and require a lot of bureaucratic procedures. The good news is that you won’t be left without utilities, such as electricity, water, heating. If you do not conclude an agreement yourself, this will happen automatically at the base tariff of the city utility service. The bad news is that the cost of this tariff may be higher than the average for your city.

We recommend that you conclude an agreement with an electricity supplier on your own, choosing the most favorable tariff using well-known aggregators, such as CHECK24. This way you can save between 200 and 600 euros per year.

To be able to compare current prices with new offers, all you need is a zip code and annual electricity consumption.

1. Prepare the necessary data and decide on a deadline.

If you have the last electricity or gas bill, then you can determine your annual consumption, this is important data when choosing a new supplier. The invoice will also indicate the next possible termination date for your current contract. If your contract has been in effect for more than three months, then you should postpone the search for a new energy supplier. The offers on the market are constantly changing and new interesting offers appear.

If you've just moved or have never changed your rate, then you most likely have a base rate from a regional base provider. You can terminate the contract at any time with 14 days' notice.

You can find consumption in gas or electricity bills. If you do not have data for an entire year, then calculate based on average monthly readings. In the case of gas, it should be borne in mind that gas consumption is unevenly distributed throughout the year. You should also take into account, if you have electric heating, that consumption in cold months is much higher.

If you do not know your consumption, select the standard values ​​that are offered by online rate calculators on aggregator portals. They are based on the number of people using electricity and the size of the apartment.

The actual change of supplier should not last more than three weeks. However, this only applies to the pure switching process from the moment your new energy supplier contacts the grid operator.

2. Select a new tariff.

What you should pay attention to:

- the more accurately you have determined your average annual consumption, the more favorable tariff you can choose.

Most often, the tariff consists of:

- basic service price (Grzundpreis) N-Euro per month

- the cost of actually consumed electricity (Arbeitspreis) in cents per kilowatt.

Depending on the mode of consumption, a tariff with a low cost of service, but an expensive cost per kilowatt, or vice versa, may be beneficial.

Once you have made your choice, take a screenshot of the basic rate data, especially the bonus terms. Compare this screenshot later with your order confirmation. This photo can help if there is any discrepancy with the new supplier.

3. Enter into a new contract and terminate the old contract.

After you have decided on the tariff, you can conclude a new contract directly with the supplier or through the tariff comparison portal. In any case, the new supplier will cancel your previous contract for you if you give him the appropriate power of attorney.

Attention:you must terminate the old contract yourself if the time to cancel the old contract is still too late! If the notice period ends soon and an automatic renewal occurs, you must cancel it yourself.

This also applies to non-standard cases of termination, for example due to an increase in the price of the current supplier. In unusual cases, do not rely on a new supplier and terminate the contract yourself. Be sure to inform the new provider that you have already sent a termination notice to the old provider. It is often possible to mark a corresponding note in the order form of a new supplier, for example: "I myself have terminated my old contract."

A new electricity or gas contract is considered concluded as soon as the new supplier sends you the signed contract with the expected start date. You should compare the prices and terms of the contract with the information in the application.

The previous supplier sends you the final recalculation. He has 6 weeks to do this after the end of the contract.

4. Pay attention to the right to withdraw from the contract (Widerrufsrecht)

If you have entered into a contract online, you have the right to withdraw from the contract without giving a reason.

This not only applies to online contracts, but also includes contracts that you enter into by phone or letter.

You can revoke your consent within 14 days of receiving instructions on how to terminate your contract. As a rule, this is the day of the conclusion of the contract, because along with the confirmation of the order, you will also receive instructions on your right to cancel the contract and a form for cancellation. However, if you have entered into the contract on the premises of the supplier, you have no right of withdrawal.

5. Send meter readings

Take meter readings on the day of the shift. In order to avoid misunderstandings, inform the regional network operator, old and new electricity or gas supplier about the meter readings.

6. Plan your next supplier change.

You should mark the next possible end date or time on your calendar when you want to re-compare prices so you don't miss any deadlines.

If you have other questions, you can always contact us:

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