Electricity prices: Families save more than 900 euros by switching providers

Households with high electricity consumption can currently save more than 900 euros a year by switching providers. An analysis shows that high savings are also possible for single-person households.

According to an analysis by the comparison portal Check24, consumers can currently save a lot of money by switching their electricity provider. A comparison of the 100 largest German cities shows that a family with a consumption of 5,000 kilowatt hours (kWh) has an average of 43.2 percent or 918 euros less electricity costs per year due to the withdrawal from the basic supply. A single gets 37.5 percent less – an annual saving of 277 euros.

primary care without price guarantee

“Even before the price cap was abolished, the prices of almost all alternative providers were well below the brake,” said Steffen Suttner, Managing Director of Energy at Check24. Now the network fees have also increased. Customers of basic services in particular will notice the increase in network fees in their wallets, as these tariffs do not have a price guarantee.

At the end of the year, during budget discussions, the federal government decided to cancel the federal subsidy for network fees. It involved costs of 5.5 billion euros. The four major long-distance line operators in Germany – Tennet, Amprion, 50Hertz and TransnetW – then more than doubled their fees and a number of electricity suppliers announced that they would pass these increases on to their customers.

By switching providers, consumers could significantly reduce their annual electricity costs, says Suttner. “Compared to basic services, customers in some regions save over half the costs.” With a price guarantee, they are also able to protect themselves from future adjustments.

Savings potential is highest in Konstanz and Zwickau

Especially in Konstanz (Baden-Württemberg), families should check their electricity tariff, says Check24. Because that’s where the greatest savings potential is. A family of four with an annual electricity consumption of 5,000 kWh saves up to 1,517 euros or 55.5 percent annually by switching providers. High savings are also possible in Zwickau (Saxony) and Jena (Thuringia).

According to Check24, a single household with an annual consumption of 1,500 kWh of electricity also saves the most in Zwickau. The savings potential from the change is 442 euros or 48.6 percent per year for singles in the Saxon city. This is followed by Jena, Konstanz, Potsdam and Cottbus (both Brandenburg).

According to the comparison portal, people in Wolfsburg save the least when switching. The savings potential there is only 338 euros per year for families and 57 euros per year for singles. It is also low in Bremerhaven, Hamm or Flensburg.

New customer prices at the level of 2019

Prices on the electricity exchanges in general have fallen significantly in recent months. The average price in January on the European electricity exchange EPEX was 77 euros per megawatt hour (mWh). For comparison: In January 2023, a megawatt hour cost just under 118 euros. However, these are the prices at the wholesale market. Consumers do not always notice these developments directly, as most companies rely on long-term procurement of electricity.

However, prices for end customers have also fallen. According to Verivox, the average offer price for new customers yesterday was 25.57 cents per kWh (255.70 euros per mWh), after 36.13 cents (361.30 cents per mWh) a year earlier. It is a long way from the highs of the energy crisis of over 70 cents per kWh in September 2022.

Last summer, some tariffs were once again as cheap as they were before the Russian attack on Ukraine. According to Check24, new customers are paying almost as little this month as they did in 2019 – but only with alternative providers. At the turn of the year there were 498 cases of reductions in basic services. But prices there could now rise again.

With information from Till Bücker, ARD financial editorial team.