High numbers of households encounter steep electricity and natural gas costs
In the heart of Europe, millions of German households are grappling with inflated electricity and gas prices, with local providers being the primary culprits. The German Broadcasting Corporation (ARD) has several audios available on their website (ARD-Mediathek) that delve into this pressing issue [1].
One audio discusses whether electricity prices in Germany are too high, a concern shared by many households [2]. The high and volatile wholesale energy prices are a significant contributing factor, driven by increased heating demand, reduced renewable generation (wind and hydropower), and reliance on fossil fuels amid global political and economic tensions, notably the Ukraine conflict [3].
As a result, household electricity costs remain significantly above pre-pandemic levels, with basic supplier contracts being notably expensive at around 46 euro cents per kilowatt-hour [1]. Experts suggest that households can save money by switching from these costly contracts to alternative contracts or providers offering special deals [1].
Interestingly, every fourth electricity customer (25%) and every fifth gas customer (19%) in Germany have a basic supply tariff from local suppliers [4]. By shopping around and changing contracts, consumers can find better rates, as high controllable costs such as supply margins and energy procurement fees are a significant part of the problem [1].
The debate over electricity price zones in Germany is another point of contention. The Federal Network Agency is against this concept, with President Klaus Müller of the Federal Network Agency providing reasons for his opposition [7]. On the other hand, the OECD has proposed that Germany should offer regions with renewable energy producers lower network charges [6].
It is also debated whether companies in Germany pay more for electricity than abroad [8]. However, the focus for many households remains on finding ways to reduce their energy bills. The Taxpayers' Association is urging the coalition to keep its promise on electricity prices [5], while the German Broadcasting Corporation has an audio available on what a new government can do against high electricity and gas prices [4].
For those seeking a more personalised approach, our website offers a gas price calculator that shows the current prices in your region daily [4]. With these tools and expert advice, households can take steps towards lessening their financial burdens in the face of high energy prices.
- Households in Germany, looking to save money on their energy bills, can consider switching from expensive contracts or providers to ones offering special deals, as high controllable costs such as supply margins and energy procurement fees are a significant part of the problem in the industry.
- The energy sector, influenced by factors like increased heating demand, reduced renewable generation, and reliance on fossil fuels amid global political and economic tensions, has led to electricity prices in Germany being significantly above pre-pandemic levels, especially in basic supplier contracts which are around 46 euro cents per kilowatt-hour.
