How switching Gas tariffs in Germany could save you €1,000 a year

Newsworm
with
AFP
August 31, 2025
Gas prices in Germany for new contracts have dropped significantly, with wholesale costs at their lowest in 2025. Consumers switching to cheaper tariffs could save up to €1,000 annually compared to those still on older, expensive plans. Experts advise reviewing current contracts and considering 12-month guarantees.
Advertisement
How
Image by Freepik

Gas customers in Germany are currently paying significantly less when signing a new contract than they were at the beginning of the year. This is reported by the Funke Media Group newspapers, citing an analysis by the comparison portal Verivox. According to the analysis, wholesale prices for gas reached their lowest monthly level this year in August, averaging around 3.3 cents per kilowatt hour.

Advertisement


“Competitive gas suppliers are passing on this price reduction in an attempt to win new customers,” Verivox energy expert Thorsten Storck told the Funke newspapers. In spring 2025, the average price for a kilowatt hour of the cheapest gas offers for new customers was still around ten cents (gross including base price). Over the course of the summer, it fell to around nine cents per kilowatt hour.


According to Verivox, the lower gas prices could result in significant savings for consumers. For a single-family home with an annual consumption of 20,000 kWh, the annual heating costs would be 1,800 euros at a kilowatt-hour price of nine cents, the comparison portal explained.

On the other hand, those who have never looked for a cheaper gas tariff and are supplied under the terms of the local basic service pay around 14 cents per kilowatt-hour. This means annual heating costs of around €2,800, which is €1,000 more per year. “Gas customers who are still being supplied at prices from the energy crisis of 2022 and 2023 should take a critical look at their current gas tariff,” Storck recommended. They may be paying “much more than necessary.”


In principle, signing a new contract with a 12-month price guarantee this fall could also protect against potentially rising gas network fees. Gas network fees rose by more than 20 percent on average nationwide between 2024 and 2025. This led to price increases in many places.

“It is still uncertain how gas network fees will develop in the coming year, as network operators will not publish the fees for the coming year until October,” Storck explained. “However, we assume that they will follow the long-term trend and will be higher again next year.”

Advertisement

Advertisement
Advertisement