Energy prices: falling electricity prices: How you can save hundreds of euros now

The year 2022 was marked by ups and downs in energy prices for people. In March, consumers felt this primarily in the development of heating oil prices in Germany. According to information from “esyoil”, the price for a liter of heating oil broke the 2 euro mark on March 9 – for a liter had to heating oil customers pay a whopping 2.09 euros. This high phase of the energy and price crisis has been over since the end of 2022. Heating oil prices have been flying low since January – and theoretically gas and electricity also cost less.

Electricity prices are falling: Switching providers can be worthwhile – consumers can save that much

The problem in contrast to heating oil: Fixed rates apply to gas and electricity contracts. Short-term fluctuations on the energy market therefore usually have no direct impact on electricity and gas customers. This is annoying, especially in the current situation. Because even on February 13, the electricity prices in green electricity and alternative tariffs are well below those of the basic suppliers in Germany – making switching to another provider all the more interesting for many consumers. But how useful is that?

One thing is certain: in green electricity and cheaper alternative tariffs electricity customers currently save between 200 and 300 euros in electricity costs per year. That reports the “WirtschaftsWoche” and relies on numbers from the comparison portal “CHECK24”. 5,000 kilowatt hours currently cost an average of 1,917 euros for new customer contracts – that is around 200 euros less than the average price of the basic service. Also the comparison portal “Electricity information” reports an electricity price in this range on February 13:

Falling electricity prices make switching attractive, but consumers should pay attention to this

Away from the basic supply and back to a cheaper electricity tariff – for example to an alternative provider. The step seems logical – but consumers should note a few things here. Because providers with currently cheap offers buy theirs Electricity usually at short notice via the spot market. The disadvantage: If electricity prices rise again, these providers will have to adjust their prices again faster than the default suppliers. Christoph Maurer – the managing director of the energy consultancy “Consentec” – warns against the “WirtschaftsWoche”.

The combination of spontaneous market providers and long-term contracts can have unpleasant consequences for electricity customers. “If the prices on the spot market rise, these providers are in danger of becoming illiquid.” In extreme cases, low-cost providers could face bankruptcy. The consequences for those affected electricity customers would then be dramatic: You would have to switch to a significantly more expensive electricity tariff – similar to the energy crisis. They would then be the big losers and would end up paying more per kilowatt hour (kWh) of electricity.

Electricity prices are falling: save several hundred euros a year – energy experts give tips

Maurer’s tip for consumers who are willing to switch: identify electricity and gas providers who are at risk of insolvency – but this is difficult in practice. As a rule, you get on comparison portals such as “CHECK24” and “Verivox” in addition to the gas or electricity prices hardly any information about the financial status of an energy supplier. According to Maurer, however, one can remember as a “rule of thumb”: In general, pure electricity trading companies are more at risk than companies. Public utilities or large energy companies are often behind these companies.

Irrespective of such risk factors in the development of electricity prices in Germany, switching providers can currently be worthwhile – at least that’s what energy expert Hans Weinreuter from the Rhineland-Palatinate consumer advice center says. He has been observing, in some cases, enormous price ranges for basic suppliers in Rhineland-Palatinate for a few weeks, the expert said in January reports from “Südwestrundfunk”. (SWR) According to the current development of gas and electricity prices. From his point of view, several hundred euros in savings per year are possible when switching providers.

Switch electricity providers and save a lot of money every year – don’t forget the price brake

Just like Maurer, Weinreuter also has a tip ready for interested consumers: compare the gas and electricity prices and primarily those Gas and electricity price brake factor in. For consumers, the gas and electricity price brake will take effect from March and should cap energy prices by up to 80 percent. But very few people know that the relief also applies to providers. This is exactly where consumers can get a lot – when comparing providers, you should keep this in mind and also in contract negotiations with potential new providers.

The question about electricity prices – whether it is currently worth changing providers – can be answered in the affirmative with regard to the assessments of the experts. Daniel Puschmann – Managing Director of “Verivox” – also certifies the German electricity customers in conversation with the “PICTURE” a “good time” to switch providers. His tip: “If you want to remain flexible, you can take out a tariff with a term of one to three months.” You should always pay attention to the small print in the contract.

Electricity prices make change attractive: Expert warns of nasty scams with cheap prices

Some providers lure consumers with low electricity prices for a few months – after that it often becomes significantly more expensive. Lawyer Leonora Holling – Managing Director of the Association of Energy Consumers – to “BILD”: “The prices without surcharges and state requirements should be guaranteed for the contract period.” Nothing is cheaper than free Electricity – Key word: solar system. It doesn’t always have to be the expensive PV system. Even small mini solar systems – also called balcony power plants – can help to save energy.

Many municipalities even provide subsidies for balcony power plants – several hundred euros are possible per system. Increasingly, mini wind turbines can also be found in online shops – small mini power stations for the balcony or garden. The combination of such systems is also interesting for consumers. The term “self-sufficient” – being completely or partially autonomous from the public power grid – is becoming more and more important. What’s more, they’ll pay for themselves over the years acquisition cost – the investment is therefore worthwhile in almost all cases.

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