As of: 11/19/2021 9:23 a.m.
In 2020, more German households replaced their electricity supplier than they have in a long time. Eleven percent signed a contract with a new provider – the highest figure since 2011.
Around 5.4 million customers in Germany changed their electricity supplier last year. According to the Federal Network Agency and the Federal Cartel Office, that is just under eleven percent of all households – and thus not more than since 2011.
In 2019, only 7.8 percent replaced their provider, according to a draft of the new monitoring report for the 2020 electricity and gas market in Germany, which is available to the dpa news agency. According to this, household customers are more and more often opting for a supplier who is not the local basic supplier, and thus for a cheaper electricity supply contract.
Switching often saves money
The number for 2020 includes almost 1.4 million changes of supplier due to relocation. The editors of the report, the Federal Network Agency and the Federal Cartel Office, recommend consumers to find out about their contract status and the current prices of their electricity suppliers and to compare them with those of other suppliers. “A change of the contract with the existing supplier or the change of the supplier are connected with a saving in most cases”, it says in the report.
How much can be saved always depends on where you live and the price of the old tariff. Before the turbulence on the electricity market and the massively rising prices, a new contract often brought in 100 euros or more per year, according to Stiftung Warentest. Those who have never changed anything and are still receiving basic services can benefit in particular.
Basic provider still in high position
According to the monitoring report, this is currently 62 percent of household customers. Around 25 percent of this is accounted for by the classic basic service. This is a standard tariff with which everyone is automatically supplied with energy. The remaining 37 percent are supplied via a contract with the local basic supplier, but outside of the basic supply.
“The position of the basic suppliers in their respective supply areas remains strong,” write the authorities. According to the Energy Industry Act, a basic supplier is an energy supply company that supplies most household customers in a certain network area.
The remaining 38 percent now have a contract with a supplier who is not the local basic supplier. The choice is large: on average, household customers could choose between 142 electricity providers in their respective grid area in 2020. In 2019 there were still 138. Support in choosing the right supplier is provided by comparison portals and automatic exchange services that not only help once, but also suggest tariffs on a permanent basis.
Germans pay almost the most globally
The price of electricity hit a record high for the seventh time in a row this month. According to the comparison portal Check24, a sample household (5000 kWh) currently pays an average of 1573 euros a year for electricity, i.e. an average price of 31.5 cents per kilowatt hour. For comparison: In November 2020 it was 1468 euros, around seven percent less. The main reason is the skyrocketing wholesale prices.
In an international comparison, German consumers spend an enormous amount of money on electricity, as a Verivox analysis shows. Of the G20 countries, Germany has by far the most expensive electricity. In Italy and Great Britain, which take second and third place, electricity prices are around ten and 12.5 cents cheaper, respectively.