The circuit breaker of a multiple socket that is switched on lights up red. More and more utilities are lowering their prices for electricity and gas. © Karl-Josef Hildenbrand/dpa/Symbolbild
More and more utilities are lowering their prices for electricity and gas. Consumer advocates recommend a comparison, because a change of provider could be worthwhile now.
Berlin/Düsseldorf – After last year's electricity and gas price shocks, the situation for household customers has improved again. Consumers can now switch back to providers whose prices are in some cases well below the energy price brakes for electricity (40 cents per kilowatt hour) and gas (12 cents per kilowatt hour). An overview.
Electricity prices have fallen
"Household electricity prices for new customers have fallen continuously since December 2022," says electricity market expert Mirko Schlossarczyk from the consulting firm Enervis. Current offers are less than 30 cents per kilowatt hour. "For existing customers and in the basic service, however, the price level is still noticeably higher and is currently just over 40 cents." These prices have fallen only slightly in recent months.
The causes of the price decline
According to Schlossarczyk, the main reason for the decline in end-user electricity prices is a significant drop in wholesale prices on the electricity exchanges. "The main driver for this is the enormous decline in the price of gas on the spot market, which is now quoted at around 25 to 30 euros per megawatt hour, which is below pre-war levels." The expert sees another reason in the sharp increase in the proportion of low-cost electricity feed-in from wind energy and solar systems in recent months due to weather conditions.
Basic utility tariffs still often above the electricity price brake
According to the comparison portal Check24, 76 percent of electricity tariffs in the basic supply are still above the electricity price brake despite reductions. In the alternative supply, on the other hand, 88 percent of the tariffs are already cheaper than the price brake, says a spokesman. With an annual consumption of 5000 kilowatt hours, new customers currently pay an average of 31.4 cents per kilowatt hour from alternative suppliers. In the basic service, on the other hand, it is 43.2 cents. By comparison, according to the energy industry association BDEW, the average electricity price in Germany in June 2021 was just under 32 cents.
Comparison portal sees trend towards price reductions
But something is also happening with the basic suppliers, i.e. the providers in a region with the most customers. According to a spokesperson, the comparison portal Verivox sees "currently a clear trend towards price reductions". However, there are still some increases. The portal has so far registered 94 electricity price reductions of an average of 12 percent for the months of June, July and August, but at the same time also 9 price increases with an average of 36 percent.
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For the coming months, Schlossarczyk continues to expect prices of 28 to 30 cents for new customers. In the case of existing customer contracts and in the universal service, on the other hand, it expects noticeable price reductions and thus a convergence of price levels.
Reasons for the price differences
"The reasons for the price differences in end consumer prices lie in the procurement strategy of the energy suppliers," explains the expert. As a rule, suppliers stocked up on the stock exchanges in good time in order to compensate for extreme price fluctuations and not have to pass them on directly to end customers.
"However, this hedging strategy means that many utilities are only able to pass on the exchange electricity prices that have fallen in the meantime to their existing customers with a delay, as there are even larger trading volumes from the high price periods from the summer and autumn 2022 in the portfolio." Current prices for new customers, on the other hand, are more favourable, as their delivery date is imminent and these delivery quantities are largely determined by currently secured trading volumes.
Gas prices have fallen
According to Verivox, gas prices are also falling. In the basic service, the portal has so far registered 75 price reductions of an average of 17 percent for June, July and August. Nine utilities have announced increases, namely by nine percent. Check24 has already registered 106 gas price reductions in the basic supply since January. Despite these reductions, 90 percent of the gas tariffs in the basic supply are still above the gas price brake, the company reports.
On average, consumers there paid 13.3 cents per kilowatt hour of natural gas. In contrast, 80 percent of the tariffs in the alternative supply are already cheaper than the price brake. Check24 gives the average at 9.4 cents. By comparison, according to BDEW, the average gas price in Germany in June 2021, i.e. before the start of the energy crisis, was just over 6 cents per kilowatt hour.
What do consumer advocates say about the development of energy prices?
"We recommend switching providers," says Christina Wallraf, an energy expert at the North Rhine-Westphalia Consumer Center. The prices for new customers are "quite acceptable again". Not only discounters are currently coming around the corner with low prices, but also municipal utilities or sales brands of municipal utilities. "If you want to remain loyal to the municipal utility, then you can first look for special tariffs at the municipal utility."
Almost every basic supplier has special tariffs, which are usually cheaper than the basic service tariff. Wallraf pointed out that there are now also more offers for night storage and heat pump electricity customers, after only very few providers had advertised for new customers at times last year.
Anyone who wants to change should critically examine the existing contract. It is important to find out the remaining term and notice period in order to find the right time to change providers. "If you are currently in the basic service, the contract can be terminated at any time, taking into account the statutory two-week period."
Tariff comparison via comparison portals
The consumer advice center advises users of comparison portals to make an individual adjustment before making a tariff comparison. For example, the filter "direct switching option via the portal" should be issued in order to see as many tariffs as possible, according to a statement. Consumers should also ensure that contractually guaranteed price guarantees are included in the event of renewed energy prices rising next winter. With the help of a short internet search, those willing to change should also check whether the provider has attracted negative attention in the past.
Could energy prices go through the roof again in winter?
Energy market expert Schlossarczyk thinks this is unlikely. "Due to the price cap in the retail price segment alone, the burden limit for household customers is limited until April 2024," he says. There will therefore be no price explosion for household customers in the coming autumn and winter. (lma/dpa)
