Record prices for electricity and gas have long been part of everyday life. But now some basic utilities are lowering their prices. To what extent does this bring relief for consumers?
Munich – Prices are falling – for many customers of basic suppliers, this is probably good news for the time being. After months of record prices and rising inflation, it seems like consumers can finally breathe out. Gas prices on the European wholesale market recently even fell to an 18-month low. But prices remain at a high level even among basic utilities – and there is another catch.
Electricity and gas prices fall for basic utilities
As reported by the comparison portal Verivox, electricity and gas prices are expected to fall between May and July. This applies to basic suppliers. A total of 91 electricity suppliers and 80 gas suppliers are lowering their prices. On average, electricity prices will be twelve percent lower, while gas prices will be reduced by as much as 23 percent.
Despite the price reductions for electricity and gas, the majority of prices are above the energy price brake
But these price reductions will hardly really reach the customers of the basic suppliers. The reason for this is that 80 percent of electricity suppliers and 90 percent of gas suppliers still have prices above the energy price brake. This was introduced by the German government to ease the burden on people against the backdrop of high energy prices.
Basic utilities are lowering their electricity and gas prices. What does this mean for consumers? © Sascha Steinach/imago
Part of the price of electricity and gas is covered by the state. Consumers in Germany currently pay twelve cents per kilowatt hour for gas and 40 cents per kilowatt hour for electricity. The rest of the price will be covered, according to the German government on its website.
Price reductions for electricity and gas: often not directly felt by consumers
According to Verivox, the price of gas at the basic suppliers is still 15.57 cents, i.e. above the capped amount, and 45.78 cents for electricity. In most cases, the lower prices will therefore not be directly felt by consumers as a result of the energy price brake.
0
Also Read
Lose 13 kilos in a few weeks? This is what is behind the Japan method
READ
Haribo sounds the alarm and launches recall – do not eat popular cult candy under any circumstances
READ
Mass layoffs: Vodafone loses hundreds of thousands of customers
READ
Driver's license change from 2023 - New regulations apply to all motorists
READ
Just at the start of the barbecue season - Popular barbecue sauce in recall
READ
Fancy a voyage of discovery?
My Area
Are low-cost providers of electricity and gas worthwhile?
So, is it worth switching from a basic supplier to a low-cost provider? Hans Weinreuter, an energy expert at the Rhineland-Palatinate consumer advice centre, told the Süddeutsche Zeitung that there have always been problems with such energy discounters in the past.
When choosing an electricity or gas provider, you should not only pay attention to the price. In some cities, however, a change could be worthwhile. In these ten cities, one particularly benefits from a change of provider.
