Overpaying for Electricity: The Hidden Cost of Moving Households in Germany
Household relocations are overpaying a staggering €550 million on electricity bills annually
Let's get real, folks. If you're moving houses, you might be spending way more on electricity than necessary. The deal's on the default supply, and it ain't pretty. According to Verivox, a comparison portal, reckless home movers are forking out around 550 million euros each year due to this oversight.
The stats speak for themselves. Approximately four million households in Germany move annually, and they end up stuck with the pricier default supply tariff. This leads to increased expenses, as these overpriced tariffs suck up a significant chunk of change from unsuspecting homeowners.
Economy: They've got you in a switch, my friend!
Verivox bases their calculations on the latest report from the Federal Network Agency. The figures show that only 1.5 million households changed electricity providers last year, and a whopping 60% of those who didn't take the initiative stuck with the default supply.
Presently, about a quarter (25%) of all households are on the default supply tariff, according to Verivox. Translating that to moving households, they estimate that around one million customers wind up with the pricier default supply, adding an extra 550 million euros to their yearly electricity expenses.
Economy: When will those electricity prices fall?
If you end up with the expensive default supply when moving to a new apartment, you'll pay an average of 1281 euros annually for 2800 kilowatt-hours of consumption. That's 548 euros more than you'd pay in the cheapest new customer tariff with a price guarantee, Verivox reports.
Don't Forget to Cancel
Moving also means you've got to cancel your old electricity supplier. Most electricity providers offer a special right of termination, but it must be exercised timely, or else you'll still be on the hook for electricity consumption in your old place – even if someone else is living there already.
From June 2025, electricity providers and network operators are required to enable the electricity provider switch within 24 hours after the contract ends on weekdays. This means it'll be even more crucial to tackle the electricity topic when moving in the future, says Verivox energy expert Thorsten Storck.
For now, it can take up to six weeks to switch energy providers after a move, so keep that in mind. Savvy consumers have been known to save millions by being informed and making the right choices when it comes to switching electricity providers.
Sources: ntv.de, chr
- Electricity Price
- Electricity Supply
Now, here's some helpful insights if you want to dodge the overpayment trap:
- Track Consumption: Keep an eye on your electricity usage to ensure your estimated monthly payments are as accurate as possible.
- Provide Meter Readings: Regularly give your meter readings to your electricity supplier to avoid overestimation of usage.
- Review Contracts: Always review and understand the terms of your electricity contract, such as how estimated costs are calculated and when actual usage is reconciled.
- Consider a Smart Meter: Installing a smart meter can provide more accurate, real-time usage data, helping to avoid overpayment by ensuring estimates are more closely aligned with actual consumption.
- Negotiate with Suppliers: If you find that your estimated costs are consistently too high, try negotiating with your supplier to adjust estimates or explore different payment plans.
The community and employment policies should encourage awareness about the hidden costs of moving households in Germany, particularly the overpriced default electricity supply. This financial burden adds up to an estimated 550 million euros annually, as reported by Verivox.
In light of the high electricity supply costs, businesses could consider offering relocation assistance to employees, helping them switch electricity providers more efficiently and save on expenses during the transition.
