Switching Energy Providers: The Secret to cutting bills in Germany

Newsworm
with
AFP
July 14, 2025
In 2024, a record number of German households switched electricity and gas providers to cut costs, reports the Federal Network Agency. Around 7.1M electricity customers and 2.2M gas users made the switch, saving €2.2B in total. Rising energy costs and increased competition fueled the trend, though power and gas cut-offs also spiked.
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According to a survey in Germany, 1.8 million people saved so much on heating costs last winter that they regularly froze. People with gas heating were often affected, according to the comparison portal Verivox. - AFP

More private households than ever switched electricity or gas providers last year. Their number "reached new highs" in 2024, the Federal Network Agency in Bonn announced on Monday. Around 7.1 million electricity customers looked for another supplier, 18 percent more than in 2023. Among gas customers, the number of switchers rose by 22 percent to 2.2 million.

In addition, more than 3.3 million electricity and 1.2 million gas customers adjusted their existing contracts on their own initiative, the Network Agency further announced. The figures show "that consumers are looking for better conditions," explained the agency's president, Klaus Müller. This is "a good sign for competition and the energy transition."

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Müller emphasized that those who opt out of basic services can save several hundred euros per year. By 2024, households in Germany had saved a total of 2.2 billion euros by switching contracts and suppliers. 

A household automatically receives basic electricity or gas supplies; according to the Network Agency, this share was around 23 percent for electricity and around 16 percent for gas last year. As of April 1, 2025, they paid an average of 40.1 cents per kilowatt hour of electricity, 1.9 cents more than the average 38.2 cents with an alternative provider. According to the Network Agency, prices for gas from competing providers were also the lowest, averaging 11.6 cents per kilowatt hour.

Some households are unable to pay their electricity or gas bills: This is reflected in the number of power cuts, which rose by around 20 percent to 245,000 last year, according to the Network Agency. The number of gas cuts also climbed by 20 percent to 33,700. In addition to rising energy prices, possible catch-up effects are also a reason, the Network Agency explained. In previous years, many providers had voluntarily waived cuts. Energy prices rose sharply following the Russian war of aggression against Ukraine in early 2022. 

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