Energy (electricity and gas) provision in Germany is shared by a mix of regional and national companies. Unlike the water supply system, the energy market has been private since the late 1990s, meaning you are free to choose your own supplier. Numerous companies compete to provide the best deals.
Gradually, however, consumers in Germany have begun to turn away from private energy companies. In many areas, such as Hamburg and Munich, power grids are being returned to public control. With less of an emphasis on profit, these municipal utilities tend to offer more stable rates and invest more in green technology.
Energy company comparison sites
With so many companies and packages on offer, it pays to shop around. If you’re unsure which supplier to go with, try using a comparison site like CHECK24 or Stromauskunft to help you find the best deal.
Energy companies in Germany
The following companies are some of the gas & electricity providers in Germany:
Setting up your energy supplier
If you are renting a house or apartment, gas and electricity are not usually included in the additional costs (Nebenkosten) but classed as separate utilities. Check your tenancy agreement if you are not sure what is included in your rent. Similarly, if you’ve bought a place, you will need to set up an account with an energy supplier. This is easy and can usually be done online. You may need the meter numbers displayed on your gas and electricity meters.
If you do not take out a contract with a supplier, you won’t be cut off, but instead, you will be automatically assigned a default type of contract called a “Grundversorgung”. While this ensures you an uninterrupted supply of electricity and gas, it rarely offers you good value for money. It, therefore, makes good financial sense to choose your own energy supplier.
Paying your electricity and gas bill
Most people in Germany pay their electricity and gas bills via a monthly direct debit to their energy company. If you are renting, you may pay this directly to the landlord, who will then pay the energy bill on your behalf.
Once a year, you will receive an update that compares your monthly payments to your actual usage. If you have overpaid, you will receive a refund, but if you have underpaid, you will have to make up the difference.
Changing your energy supplier in Germany
Changing your energy supplier is a quick and easy process, as your new company will do most of the administration for you. All you need to do is select a new company and provide them with some details (usually including the details of your bank account, meter number and estimated usage). They will then contact your previous energy supplier to cancel your contract and set everything up in time to ensure a smooth transition.
Note that some energy suppliers, as well as internet providers, offer cheaper rates on the basis of a minimum contract period (Mindesvertraglaufzeit) of up to 24 months. Make sure before you change energy supplier that you are honouring the terms of your contract, including minimum and notice periods, otherwise you may be charged an early exit fee.
Energy prices in Germany
Energy prices in Germany are some of the highest in Europe. This is because the federal republic has a long history of importing energy from abroad, leaving it vulnerable to global price fluctuations. In the wake of Russia’s invasion of Ukraine in February 2022, electricity and gas prices suddenly spiked and are only slowly returning to previous levels.
Electricity price in Germany
The cost of electricity in Germany was the highest in Europe in the first half of 2024, coming in at 0,3951 euros per kilowatt-hour, including taxes and levies. This is significantly above the average for the European Union in the second half of 2023, which was 0,2832 euros per kilowatt-hour, according to Eurostat figures.
Gas prices in Germany
In the first half of 2022, the average cost of a kilowatt-hour of gas in Germany, including taxes and levies, was 0,1198 euros. This made Germany the seventh-most expensive country in Europe for natural gas.
Bear in mind that both of these figures for electricity and gas exclude other costs added onto the price for consumers, including fixed network charges and supply costs. The price charged by your energy company will usually be higher.
Green energy
In 2000, the federal government (Bundesregierung) announced its plans to phase out all nuclear power in Germany by 2021. The need for alternative sources of green energy has since led to a boost in funding for renewable sources. The target is for 80% of Germany’s energy to be renewable by 2080.
This means that many companies offer sustainable electricity (Ӧkostrom) and gas (Ӧkogas) generated from renewable sources such as solar and wind. Government subsidies mean that their prices are usually quite competitive.
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