German households saved over €2 bln by switching electricity providers – regulator

German households are saving money on electricity bills by increasingly changing suppliers or securing better contracts, the country's network agency BNetzA said. "In 2024 alone, German households were able to save around 2.2 billion euros in energy costs by switching contracts and suppliers," said BNetzA head Klaus Müller.

The regulator recorded over 10 million electricity supply and contract switches in 2024, up from 6 million the previous year, and more than 3 million switches for gas contracts, up from 1.8 million in 2023.

On average, households in Germany paid 40.1 cents per kilowatt hour (ct/kWh) for electricity and 12.3 ct/kWh for gas at the start of April. Households that switched from their local standard supplier of electricity to new contracts were able to save an average of around 236 euros in 2024, while gas customers were able to save an average of around 350 euros per year.

Volatile electricity and gas markets, as well as supply uncertainties, led to a drop in the number of homes switching suppliers in 2022 at the height of the energy crisis, during which the government subsidised electricity and gas. The high number of supply switches in 2024 was a good sign for competition and the energy transition, Müller said, adding that "switching to competitive providers is currently particularly attractive".

Moreover, new contract types such as dynamic electricity tariffs enable consumers to benefit from the fluctuating electricity prices on the wholesale market over the course of the day, generally bringing their power bills down. Instead of paying a set monthly fee, under a dynamic contract the price for electricity drops whenever supply is plentiful.