Shelling Out Way Too Much on Electricity: Moved Households Lose 550 Million Euros Each Year due to Negligence
Households relocate, overspend €550 million on electricity expenses
Switching electricity providers when you move could save you a whopping 550 million euros annually! Many movers don't even think about it, and that's where they go wrong. This is what a report from Verivox, published in various Funke media outlets, suggests.
Every year, around 4 million households move within Germany, and almost two-thirds fail to switch electricity suppliers, ending up in the pricier default supply tariff instead. That's approximately one million households squandering around 550 million euros each year due to unnecessary high prices.
Economy Electricity Prices and Suppliers in Germany ### Expensive Mistakes
In 2023, approximately 1.5 million households changed their electricity supplier during a move. Out of these, around 1 million households (60%) sadly did not think of switching, leaving them paying top dollar for electricity.
Verivox claims that around a quarter (25%) of all German households are currently burdened with the high-priced default supply tariff. If a similar proportion of relocating households find themselves in the default supply, it equals roughly one million electricity customers coughing up an extra 550 million euros per year.
Economy Economists Predict Decreasing Electricity Prices Relocating households typically pay around 1281 euros per year for a consumption of 2800 kilowatt-hours if they default to the local electricity supplier's priciest tariff. This translates to a whopping 548 euros more than the cheapest new customer tariff with a price guarantee!
Time to Cancel Your Contract
When moving, remember you are obligated to cancel your old electrical contract. Usually, electricity suppliers grant a special cancellation right upon moving. Make sure to exercise it in time, otherwise, you might continue to be responsible for the electricity consumption in your old apartment - even if it's been rented out to someone else.
From June 2025, electricity providers and networks will be required to enable electricity supplier changes within 24 hours, following the termination of the contract. Both the move-in and the move-out must be reported promptly to prevent any confusion or delayed contract changes.
Alternative Energy SourcesSimilar to switching your electricity supply, monitoring your energy consumption is key. Understand the base fee and consumption charges on your bills. Be aware that usage depends on appliances and habits, especially if hot water is electric.
Reduce electricity consumption by using energy-efficient appliances and turning off devices when not in use. Opt for providers offering green or renewable energy plans if you prefer eco-friendly options while minimizing costs.
Verify your rental contract to check whether or not electricity is included in the rent. If electricity is not covered, take the necessary steps to arrange it before moving to avoid paying twice for the same service.
By choosing the cheapest electricity provider, registering your contract promptly, actively monitoring your consumption, and making energy-conscious decisions, you can prevent unnecessary electricity costs when moving in Germany. Consider switching providers every 1–2 years to benefit from special offers and maintain low rates.
- The community policy for a neighborhood should include an education segment about the importance of switching electricity providers when moving to save on personal-finance, as failing to do so could cost households an extra 550 million euros each year in Germany.
- To avoid wasting money on business expenses, a company's employment policy could foster awareness among employees about the financial benefits of comparing electricity suppliers upon relocation, given that neglecting this task annually results in approximately 550 million euros being squandered by one million households in Germany.
