With the downward trend in electricity and gas prices for households, even more is possible, say consumer advocates – and are encouraging a change. The big comparison portals have nothing against it.
On average, electricity and natural gas have become significantly cheaper for households over the past twelve months. Consumer advocates still see further potential for savings in the two most important grid-connected energy sources.
“New customers will again receive tariffs for electricity that average 30 cents per kilowatt hour, and for gas it is around 9 cents per kilowatt hour,” says Amelie Vogler from the North Rhine-Westphalia Consumer Center. The energy expert considers the imminent start of the heating season to be a “good time to switch”.
Average prices are below price controls
The comparison and switching portals Verivox and Check24 also find this – and do the calculations: On the comparison portal Check24, a model household is currently paying 37.3 cents per kilowatt hour for electricity, 13 percent less than a year ago. The Verivox portal comes to 38.9 cents.
For natural gas, the prices for average households have fallen even more significantly: at Check24 by 48 percent to 11.3 cents per kilowatt hour, at Verivox to 11.9 cents. This means that the price caps of the energy price brakes are not exceeded. For private households they are 40 cents for electricity and 12 cents for gas, each per kilowatt hour.
Basic supplier tariffs often above the price caps
The portals are particularly targeting the tariffs of basic suppliers, i.e. the companies with the most customers in a supply area: “Although there are currently isolated price reductions among basic suppliers, almost 70 percent of gas tariffs are still above the price limit , for basic electricity suppliers it is 59 percent,” says Check24’s head of energy, Steffen Suttner.
Even if the basic supply tariffs are below the price caps, alternative providers are significantly cheaper across the board.
Many basic suppliers want to reduce prices
However, a large number of basic suppliers have also announced price reductions. Verivox is aware of 146 electricity price reductions from basic suppliers for September, October and November. “The prices fall by an average of 16 percent, which means a reduction of around 351 euros for a family of three with an annual consumption of 4,000 kilowatt hours,” calculates Verivox expert Thorsten Storck. But some would also increase. Ten basic suppliers would increase their prices by an average of 3.5 percent. “That corresponds to additional costs of 52 euros per year.” Verivox is aware of 112 gas price reductions for the three months so far. On average, prices fell by 26 percent. At the same time, nine basic gas suppliers announced increases of an average of 5 percent.
In most cases, a change is worth it, says Vogler. “However, consumers should check and keep an eye on their contract terms and notice periods.”
If you want to be on the safe side, you can also take out a price guarantee, for example for 12 months. “This protects you from rising procurement costs for suppliers.” The expert emphasizes that there is no such guarantee in basic care. “Prices can be adjusted here at any time with six weeks’ notice. But you can also withdraw from the basic service at any time with two weeks’ notice.”
Electricity experts do not expect “price explosions”
Electricity market experts do not expect any major price fluctuations in the near future. “Assuming we assume an average winter and no extreme geopolitical events, there is nothing to indicate price explosions on the electricity market in the coming quarters and next year,” says electricity market expert Mirko Schlossarczyk from the consulting firm Enervis.
Current wholesale prices for deliveries in the coming months and into 2024 have been trending sideways or falling slightly. “The final consumer electricity prices are therefore likely to remain on average in the range of 30 to 35 cents per kilowatt hour in the near future.”
Gas experts continue to rate the market as “tense”
Experts see greater imponderables with natural gas. The wholesale prices next winter depend on the LNG supply on the global market, the availability of pipeline gas and temperature developments, but also on savings by industry and households, says Enervis gas market expert Sebastian Gulbis. “In a particularly cold winter, high prices can occur again and in a warm winter, comparatively low prices. The market remains tense.” For household customers, the restoration of the VAT rate should also play a role, says Gulbis.
Because of the high energy prices after the Russian attack on Ukraine, the federal government temporarily reduced the VAT rate for gas from 19 to 7 percent, thereby making gas cheaper. This special regulation is now set to expire three months earlier than planned at the turn of the year, according to government circles.
Saving is easier on your wallet
“Saving is still important,” says consumer advocate Vogler. The situation has calmed down significantly from last year. But gas is still a scarce and expensive commodity. “In addition, every kilowatt hour of electricity or gas saved also relieves the burden on your own wallet.”
Heating oil is currently more expensive again
While almost half of the apartments in Germany are heated with natural gas, heating oil accounts for around a quarter. Prices there have also fallen since the beginning of the year – initially. “From around 1.25 euros per liter on January 1st to just under 90 cents in May and June,” says Oliver Klapschus from the comparison portal Heizoel24. However, prices have been rising again since mid-July. The current price per liter in Germany is around 1.15 euros on average.
Klapschus expects the current market phase to last for a while. “Those interested in heating oil who are waiting for better times will have to be patient.” There may be relief in the new year: “Globally, the first quarter is the one with the lowest demand for oil, and world market prices often fall here.” Stockpiling in September or October in the immediate run-up to the heating season, on the other hand, is almost always unfavorable.
Nevertheless: “September is generally one of the strongest heating oil sales months in the calendar – this also applies to 2023.” Klapschus assumes that the stockpiling season will last well into the fall. “Despite the fact that many consumers were already active in the first half of the year, overall demand is still high.”
Source: Stern
