Households Nationwide Expected to Change Energy Providers in 2024 at Record Numbers
In an unprecedented move, a record 7.1 million electricity customers and 2.2 million gas customers in Germany switched energy providers in 2024. This significant shift was primarily driven by economic considerations, competition, and consumer awareness about potential savings.
The desire to reduce energy expenditure became a stronger motivator amid fluctuating and generally high energy prices. By moving away from the typically more expensive basic supply contracts offered by local utilities, households could save several hundred euros annually. In 2024, German households saved around €2.2 billion on energy costs through such contract changes and supplier switches.
Klaus Müller, the president of the Federal Network Agency, stated that consumers are looking for better terms. He also noted that this trend is a good sign for competition and the energy transition. The increase in consumer switching was welcomed by the Federal Network Agency as a positive sign of healthy competition and support for Germany's energy transition efforts.
Improved competitive market dynamics played a crucial role in the increased switching activity. The decline in reliance on basic supply contracts was evident, with the share of households remaining on basic or default electricity and gas supply dropping notably. For electricity, the share dropped by 2%, while for gas, it decreased by 3%.
Over 3.3 million electricity customers and 1.2 million gas customers adjusted their existing contracts on their own initiative in 2024. The average price for gas with competing providers was 11.6 cents per kilowatt hour, while households on basic supply for gas paid 27.7 cents more. Similarly, households with an alternative provider paid an average of 38.2 cents per kilowatt hour of electricity, while those on basic supply paid 40.1 cents more.
The switch and adjustments in contracts are considered a positive sign for competition and the energy transition. The number of households switching electricity suppliers increased by 18% compared to 2023, while the number of households switching gas suppliers increased by 22%. The share of households receiving basic supply for electricity was around 23%, and for gas, it was around 16%.
This trend highlights how economic considerations, competition, and consumer awareness about potential savings have empowered consumers to make informed decisions about their energy providers. The record number of households switching energy providers in Germany in 2024 underscores the growing importance of competition and consumer choice in the energy market.
[1] Source: Federal Network Agency, Germany (2025)
Small and medium-sized enterprises (SMEs) within the community policy may find it beneficial to explore the changing energy market in Germany, given the record number of electricity and gas customers switching providers in 2024. The finance sector, particularly investors, might be interested in the growth of competition and the trend towards SMEs seeking alternative energy suppliers, given the potential savings and improved terms. Additionally, the energy industry could see an increase in demand for their services as more households and businesses prioritize energy efficiency and cost savings.
