You're Losing Money: Overpaying for Electricity by Staying with the Default Supplier When Moving
Household Relocations Overpay €550 Million Annually for Electricity Bills
Migrating means more than just a new address, it's also a chance to rethink your electricity supplier and save some serious cash. That's right, many households are unknowingly forking over an extra 550 million euros annually by sticking with their default supplier instead of exploring better tariffs.
According to a report by Verivox and picked up by Funke media group newspapers, around four million households in Germany move every year. Sadly, the majority of these movers don't take advantage of the opportunity to switch electricity providers, resulting in costly default supply tariffs.
Here's where it gets frustrating: over half of Germany's households are currently on these costly default tariffs, according to Verivox. Roughly translating that to moving households, if the same proportion as a whole ends up with their local default supply, that's around one million electricity customers needlessly overspending.
Gouging Economics
Suppliers have been called out for their predatory 'entice and rip-off' system. In 2023, only about 1.5 million households switched electricity suppliers during a move, with almost two-thirds not bothering. That's a staggering 2.17 million households remaining on expensive default tariffs, leading to unnecessary annual costs of 550 million euros.
People on the default supply tariff of their local electricity supplier are currently shelling out an average of 1281 euros per year for 2800 kilowatt hours, a difference of 548 euros compared to the cheapest new customer tariff with a price guarantee.
Cancellation is the Key
Aside from selecting a new supplier, you also need to remember to cancel your old one. Most electricity providers give customers a special right of termination that should be exercised promptly to avoid lingering responsibility for electricity consumption in the old apartment, even after someone else has moved in.
The good news is, changes should become faster and smoother come June 2025. Electricity suppliers and network operators will be required to enable the electricity supplier change within 24 hours on working days. The reporting of move-in or move-out dates will no longer be retroactive, making it more important than ever for consumers to address the topic of electricity when moving.
Don't get ripped off; take an active role in your electricity consumption when moving. It could mean savings of hundreds of euros per year.
- "To prevent unnecessary financial drain, it's crucial to review both the community policy and employment policy regarding electricity supply changes when moving, ensuring a seamless switch to a more cost-effective electricity provider."
- "In the interest of efficient business practices, implementing an employment policy that encourages employees to compare electricity tariffs during moves could potentially save significant sums in finance, contributing to overall business savings."
