Shelling Out More Bucks for Juice: Households Spending 550 Million Euros More on Electricity During Moves
Households relocate were apparently overpaying €550 million for electricity
Let's get real, folks. Moving sucks, and it seems like there's no shortage of hidden expenses to gouge you. One of them? Overpaying for electricity. The comparison platform Verivox crunched the numbers and estimates that households in Germany are dropping a whopping 550 million euros needlessly on electricity due to a simple oversight during house moves.
So, what gives?
The Introductory Rip-off
You've probably moved houses before, right? When you move in, you sign up for a new electricity plan, and the provider sets a monthly advance payment based on an assumed annual energy consumption. Guess what? They tend to overestimate how much energy you'll use. This cushion ensures they won't be left in the red at the end of the year (you know, when they finally take the time to read your actual meter).
The Annual Hand-off
Now, here's the kicker. At the end of each year, the electricity company asks for the actual meter reading. Only then do they tally up your true energy consumption, and any overpayment is either refunded or added to the next bill.
The High Cost of Kilowatts in Germany
Germany's electricity prices are already among the priciest in Europe, with the average residential energy rate at around €0.3969 per kWh in 2025. Overestimates can add up quickly and leave you feeling the burn.
Lack of Awareness and Miscommunication
It's easy to feel blindsided when you're focusing on a million other things during a move. Couple that with the fact that many renters and new homeowners don't fully grasp how their contracts work, and you've got a recipe for overpayment.
If You Move, Adjust
From 2025, electricity providers and network operators are expected to process energy supplier changes within 24 hours on working days after the contract ends. So, it'll be even more crucial for consumers to stay proactive about their electricity arrangements during moves.
Got any tips for saving on electricity bills? Sound off!
Related Topics:
- Electricity Prices
- Electricity Supply
Enrichment Data:
Electrical Moving Mistakes to Avoid
- Pay Attention to Initial Payments: Be mindful of the monthly advance payment established by the electricity provider, as it's often an overestimation of your actual energy consumption.
- Meter Reading Matter: Have a clear understanding of when and how your electricity company will ask for your meter reading. Generally, it's at the end of each billing year or contract period.
- Stay Aware and Adjust: As a consumer, it's your responsibility to keep tabs on your electricity usage and make adjustments to your contract as needed, especially after a move.
Estimated Overpayment vs. Actual Cost
- Called Out Overpayments: The difference between your estimated initial billing and your actual energy consumption is cashed out when the meter reading is processed annually.
- Common Overpayment Range: The variation in overpayment depends on the household, but it's typical for households to receive a refund of €100–€400 (or more under certain circumstances) if they underestimated their energy consumption.
High Energy Costs in Germany
- Pricey Current Electricity Rates: Germany has some of the highest electricity prices in Europe, with an average household rate of €0.3969 per kWh in 2025[2].
In short, many households can save money by taking a proactive approach to their electricity contracts during and after a move, minimizing overestimates and reducing unnecessary costs.
After moving, it's essential to review and adjust your electricity policy to avoid overpaying for your energy consumption. This oversight during house moves has led to an estimated 550 million euros in unnecessary expenses for households in Germany. Additionally, understanding the finance aspects of personal-finance management, such as ensuring accurate meter readings and staying aware of your energy consumption, can help mitigate these costs in the business realm of electricity supply and prices.
