Household relocations overpay an estimated €550 million in electricity costs yearly.
Moving can be a stressful time, and assessing your electricity needs isn't typically at the top of the to-do list. Unfortunately, this oversight may cost you dearly. According to a recent report by Verivox, a lack of consideration for changing electricity providers when moving results in households shelling out a whopping 550 million euros annually on overpriced electricity bills.
Every year, about four million households make a move within Germany. However, many fail to realize that their new location could mean higher energy costs, as they often end up in a supplier's expensive default tariff. In 2023 alone, just over 1.5 million households opted to change their electricity provider during their move, but around two-thirds neglected to do so [NRW.de]. This means that approximately one million households may be overpaying for their electricity each year, amounting to 550 million euros in unnecessary costs!
The High Price of Inertia
Currently, a household consuming 2800 kilowatt-hours annually pays an average of 1281 euros on the expensive default supply tariff. In comparison, the cheapest new customer tariff with a price guarantee costs about 733 euros—a difference of 548 euros! That's a lot of money лежать на столе (to be left on the table)! And it doesn't end there. Households must also take the initiative to cancel their old electricity provider, as they remain responsible for the electricity consumption in the old apartment even if someone else has moved in [ntv.de].
From June 2025, new regulations will require electricity providers and network operators to enable electricity provider changes within 24 hours after the contract's end on weekdays [Verivox]. This will make it even more important for consumers to be aware of their electricity consumption when moving.
Breaking the Cycle
So, how can you avoid becoming part of this expensive cycle? Firstly, ensure that your meter readings are as accurate as possible. Frequent and timely meter readings prevent large discrepancies in billing and overpayments [1].
Secondly, consider switching to a more cost-effective electricity plan. Platforms like Verivox and Check24 can help you compare electricity providers and choose a plan tailored to your needs. Dynamic pricing, which adjusts the rate based on the time of day, can offer substantial savings by aligning consumption with off-peak hours [1, 2].
Lastly, be mindful of your energy usage, particularly in apartments with tankless water heaters, which can significantly impact your electricity bill [1]. Additionally, explore renewable energy options, as Germany encourages the adoption of greener power sources [3].
As with any financial matter, knowledge is power. Keep abreast of energy market developments and potential reforms, such as grid fee reforms, which could impact electricity costs [4, 5]. With a little effort, you can ensure that your electricity bills don't leave you high and dry!
Sources:- ntv.de, chr, Link- nrw.de, Link
Related Topics:- Electricity Prices in Germany- Electricity Supply in Germany
[1] How to Optimize Electricity Bills: Tips and Tricks for German Households, Link[2] Germany's Electricity Market: Dynamic Pricing Explained, Link[3] The Advantages of Renewable Energy Sources in Germany, Link[4] The Impact of Grid Fee Reforms on Household Electricity Bills, Link[5] The Future of Energy Subsidies in Germany, Link
- To save money on energy bills and reduce potential overpayments, it's crucial for households to consider reviewing their electricity policies during relocation, as failure to do so may lead to costly emissions from pricey default tariffs in the new location, just as the industry-wide issue contributes to 550 million euros in yearly unnecessary costs.
- In the realm of energy finance, households mustn't overlook the importance of having well-designed community policies regulating energy consumption and promoting cost-effective employment policies – such as dynamic pricing and renewable energy initiatives – which can significantly help reduce energy costs and contribute to a greener transition within the industry.
