Overpaying for Electricity When Relocating: Households Unnecessarily Shell Out 550 Million Euros Annually
Households Relocateing Overpay European Union's Electricity Bill by Approximately €550 Million
Move, meet new neighbors, and…pay more for electricity? Sounds like a frustrating scenario for many households in Germany. According to Verivox's calculations, around 1 million households pay an unnecessary whopping 550 million euros yearly for electricity due to neglecting to switch providers when they move.
Over four million households move within Germany each year, and around two-thirds of them do not bother to find a new electricity supplier. This oversight results in landing in the more expensive default supply tariff, racking up extra costs.
Economy "Suppliers use bait-and-switch tactics"
Verivox bases its calculation on the latest monitoring report from the Federal Network Agency. In 2023, approximately 1.5 million households switched electricity providers due to a change of residence, with around two-thirds not taking the initiative to find a new supplier.
Currently, around a quarter (25%) of all households in Germany are stuck in the expensive default supply tariff, according to Verivox. If moving households follow suit, that translates to around one million electricity customers paying unnecessary additional costs of approximately 550 million euros per year.
Economy When Will Electricity Prices Drop?
If you end up in the expensive default supply of the local electricity supplier after moving, you'll pay an average of 1281 euros per year for a yearly consumption of 2800 kilowatt hours. That's a staggering 548 euros more than the cheapest new customer tariff with a price guarantee!
Time to Think About Cancellation
Upon moving, you must cancel your old electricity supplier yourself. In most cases, electricity suppliers offer a special right of termination, but it's important to exercise this in a timely manner to avoid being held accountable for the electricity consumption in your old apartment, even if someone else has moved in.
From June 2025, electricity suppliers and network operators must enable the electricity supplier change within 24 hours on working days. This means that both the move-in and move-out must be reported promptly. Failure to do so could result in additional hassles in the future.
As Verivox energy expert Thorsten Storck points out, "it will be even more important for consumers in the future to deal with the topic of electricity when moving."
- Electricity Price
- Default Supply
Bonus Insights:
- Electricity prices in Germany have seen volatility due to energy transitions and global factors.
- Taxes and additional charges make up a significant portion of electricity bills in Germany.
- The utility billing system in Germany can contribute to extra costs due to separate billing for electricity, heating, and water.
- To save on electricity costs, research providers, negotiate with landlords, adopt energy-efficient practices, explore renewable energy options, and keep track of consumption.
- In the midst of moving, it's essential for households to remember to switch their electricity suppliers, as failing to do so could lead to being stuck in the expensive default supply, resulting in unnecessarily high finance costs, such as the 550 million euros annually paid by around one million households in Germany.
- As electricity prices in Germany continue to fluctuate due to energy transitions and global factors, businesses and communities would benefit from implementing comprehensive employment policies that address energy conservation, including guidance on finding more affordable electricity providers, thus contributing towards cost-effective business operations and sustainable community living.