As millions of households in Germany move annually, many are likely to overpay for electricity due to a lack of switching to a more affordable provider, a recent calculation by the comparison portal Verivox suggests. According to the calculation, around 4 million households move within the country each year, yet only a small minority take the opportunity to change their energy supplier. This results in an estimated annual waste of around 550 million euros due to higher tariffs.
The higher costs arise because many households end up in a more expensive basic supply tariff after a move and fail to consider a tariff change. Verivox based its calculation on the latest monitoring report by the Federal Network Agency (BNetzA). The report stated that in 2023, around 1.5 million electricity suppliers were changed, which translates to nearly two-thirds of the households moving in Germany not taking the initiative to change their energy provider. Currently, according to Verivox, approximately a quarter (25%) of all households in Germany are on the more expensive basic supply tariff.
“If we assume that a quarter of the moving households also end up in the local basic supply, that’s around one million electricity customers. Extrapolated, the unnecessary additional costs total around 550 million euros per year” the portal stated. For those who move into a new apartment and fall into the expensive local basic supply, the current average annual cost for a household with a consumption of 2,800 kilowatt-hours is 1,281 euros, which is 548 euros more than in the cheapest new customer tariff with a price guarantee, Verivox calculated.
In general, households moving must themselves terminate their contract with their energy supplier. In most cases, energy providers grant their customers a special termination right. Households must make use of this right in a timely manner, as otherwise, they will remain responsible for the electricity consumption in their old apartment, even if someone else has already moved in.
“Starting in June 2025, energy suppliers and network operators will be required to enable the change of electricity supplier after the contract ends within 24 hours on weekdays” said Verivox’s energy expert, Thorsten Storck, to the newspapers of the Funke Media Group. “Neither the out- nor the in-move can be reported retroactively.” For consumers, it will become even more important to deal with the topic of electricity when moving in the future. Until now, households had six weeks to change their energy supplier after a move.