Out of basic care: Energy providers change more than ever before

Never before have so many consumers have taken new ground in their electricity or gas contract as last year. As the Federal Network Agency announced on request, 7.1 million electricity customers changed their contract and thus 18 percent more than 2023. In the gas area, the plus was 22 percent to 2.2 million customers. According to the Federal Network Agency, both are maximum stalls.

“The high number of suppliers in 2024 shows that consumers are looking for better conditions,” said head of the authorities Klaus Müller. “This is a good sign of competition and energy transition.” Those who leave the basic service to the local municipal utility can save several hundred euros per year. “In 2024 alone, German households were able to save around 2.2 billion euros in energy costs by changing the contract and supplier.”

The basic supply means the standard delivery with electricity and gas, which a household receives automatically if it does not conclude a separate delivery contract. The basic supply is usually more expensive than other contracts. In the case of electricity, 23 percent of households were in basic supply last year and thus two percentage points less than 2023. In the gas area, this value dropped from 19 to 16 percent.

Lundquist Neubauer from the comparison portal Verivox explained the development with large price differences between expensive inventory and basic care tariffs and cheap new customers. “The savings potential of an energy provider change has never been as great as in 2024 since our data collection that started in 2004.”

This is due to the late consequences of the 2022 energy crisis, which means that many basic suppliers had to pass on high purchase prices to their customers last year, said Neubauer. A kilowatt hour of electricity cost an average of 44.2 cents in 2024, while it was only 24.6 cents in new customer tariffs.

Electricity and gas are turned away more often

The Federal Network Agency’s figures also dealt with other areas of energy use. The number of electricity closures in 2024 rose by around 20 percent to 245,000 cases; In the gas area it was also about a fifth upwards, namely to 33,700 cases.

The Federal Network Agency attributed this development to increased energy prices and also suspected that there were catching up to do: Some providers who had previously dispensed with closures now rely on this drastic means. The number of closures is high, but there were significantly more in the past decade – in 2014 there were 352,000 electricity closures in Germany and 46,000 gas barriers.

Verena Bentele from the VdK Social Association was concerned about the latest climb. “More and more households can hardly afford a warm home or basic care,” said the association president. This development shows how poverty waxes and more and more people are being wasted socially.

“That is why political measures are needed that effectively protect against energy poverty and ensure that nobody in Germany has to live without secure electricity and gas supply.” For many people, the reduction in electricity tax and an adequate consideration of the housing costs in social benefits would be effective protection, said Bentele.