Swift Switch or Get Burned: Households Unknowingly Splash Out €550 Million a Year on Overpriced Electricity
Household relocations overpay a total of €550 million for their electricity supply.
Here's the deal: moving house could be costing you a pretty penny on your electricity bill. A calculated analysis by Verivox, accessible to Funke media group newspapers, reveals that many households neglect to think about this cost factor when relocating, leading to additional expenses amounting to around 550 million euros annually.
So, what's the dealio? Every year in Germany, about four million households move within the country. Unfortunately, most of them fail to take advantage of cheaper electricity rates and thus unwittingly land on higher-priced default supply tariffs. This oversight equates to an estimated one million customers unnecessarily paying more for electricity.
Sneaky Strategies of Exorbitant Electricity Costs
The numbers don't lie. Out of the 1.5 million electricity supplier changes in 2023, only two-thirds of households took the time to search for a new electricity provider. As a result, an impressive 25% of households in Germany are stuck with expensive default supply tariffs - showing that some providers strive to attract customers, only to subsequently overcharge them!
Think about it: if a moving household finds itself in the local default supply tariff, it will pay approximately €1281 per year for an annual consumption of 2800 kilowatt hours. Compare that to the cheapest new customer tariff with a price guarantee, which amounts to only €733 per year. That's a whopping €548 difference, all due to lack of research and planning!
Time to Pull the Plug
When moving, it's crucial not only to switch electricity providers but also to cancel your old one. Most electricity providers give their customers a special cancellation right, which must be exercised promptly. Failing to do so leaves you responsible for the electricity consumption in the old apartment, even if someone else has taken occupancy.
As of June 2025, electricity providers and network operators must facilitate the electricity provider change within 24 hours on weekdays after the contract ends. Don't fret—you can no longer report move-out or move-in retroactively. So, it's crucial to focus on electricity-related matters when moving in the future. As Verivox energy expert Thorsten Storck puts it, "The process will become even more important for consumers in the future."
Source: ntv.de, chr
- Soaring Electricity Prices
- Default Electricity Supply
In light of the soaring electricity prices, it's essential for households to be aware of their community and employment policies to potentially secure better employment opportunities in the energy sector, thereby managing their personal-finance and business expenses. For instance, staying informed about the default electricity supply tariffs and actively switching to cheaper providers can save millions in annual expenses, as highlighted by the discrepancy between the cost of default supply tariffs (€1281 per year) and the cheapest new customer tariff with a price guarantee (€733 per year).
