The Unintentional Money Pit: Households Overpaying Over 550 Million Euros Yearly for Electricity Due to Lazy Moving Habits
Households relocate to incur excessive electricity expenditures to the tune of €550 million
Moving can be chaotic and often overwhelming, leaving many households to overlook the potential for saving big on their electricity bills. A study conducted by Verivox, reported by Funke media group, reveals that households moving within Germany annually waste around 550 million euros due to default electricity tariffs.
Nearly four million households change residences in the Federal Republic of Germany every year, but only about 1.5 million switch their electricity provider during the move. This results in approximately one million households ending up in the more expensive default supply tariff, racking up an unnecessary extra cost of 550 million euros each year.
Economy: The Scam of Default SupplyAccording to Verivox, around a quarter of all households in Germany currently receive the pricier default supply tariff. If the same proportion of movers find themselves in the local default supply, they're wasting hundreds of millions.
Think about it, households moving into a new apartment pay an average of 1281 euros annually for 2800 kilowatt hours of electricity on the default supply. But, if they switch to the cheapest new customer tariff with a price guarantee, they could slash that cost by over 500 euros per year.
Economy: Things are ChangingFrom June 2025, electricity providers and network operators will allow for electricity provider changes to be made within 24 hours of a contract end on weekdays, taking the burden of retroactive reporting off consumers. Currently, it can take up to six weeks to switch energy providers after a move, so this change will make it even more crucial for consumers to stay on top of their electricity accounts when moving homes.
"The days of taking up to six weeks to switch energy providers retroactively are numbered. It's essential to handle the electricity issue when moving to avoid unnecessary costs," says Thorsten Storck, Verivox energy expert.
In conclusion, moving may seem like a chaotic time, but it's crucial to take a moment to save big on your electricity bill. The inconvenience of coordinating utility account transfers or cancellations pales in comparison to the hundreds of millions wasted annually by households who don't bother. Proactive management of utilities during moves brings significant savings, making it a no-brainer for any responsible household.
- Households should consider reviewing their community policy and employment policy when moving to ensure a smooth transition, as neglecting to switch their electricity policy could lead to unnecessary financial burdens, such as the over 550 million euros annually wasted on default tariffs.
- During the move, it's essential for businesses to factor in utility transfers or cancellations, particularly electricity, as failure to do so may result in additional costs, thereby impacting the overall business finance and profitability.
