Record Number of Consumers Switch Energy Providers in Germany

In a significant shift, a record number of consumers in Germany have opted to change their electricity and gas providers, according to recent data from the Federal Network Agency. In 2024, approximately 7.1 million electricity customers switched providers, marking an increase of 18% compared to the previous year. The gas sector saw a similar trend, with around 2.2 million customers making the switch, reflecting a rise of 22%. These figures represent all-time highs for provider changes in both sectors.

The surge in provider changes indicates that consumers are actively seeking better energy rates. The head of the Federal Network Agency emphasized that this trend is a positive sign for competition and the energy transition in Germany. By leaving the basic supply service typically provided by local utilities, households can save several hundred euros annually. In total, German households managed to save approximately EUR2.2 billion on energy costs in 2024 through changes in their contracts and suppliers.

The basic supply refers to the standard electricity and gas service that households receive if they do not enter into a separate supply agreement. Generally, this basic service tends to be more expensive than other available contracts. In 2024, 23% of households remained on the basic supply for electricity, which is a 2% decline from 2023. For gas, the percentage dropped from 19% to 16%.

Experts from the comparison platform Verivox explained this trend as a result of significant price differences between high-cost legacy and basic supply tariffs and attractive offers for new customers. They noted that 2024 marked the highest potential savings for energy provider switches since they began tracking data in 2004. This phenomenon is partly attributed to the lingering effects of the 2022 energy crisis, where many basic suppliers had to pass on high purchasing prices to their customers. In 2024, the average cost of a kilowatt-hour of electricity in the basic supply was around EUR0.442, while new customer tariffs averaged only EUR0.246.

Additionally, the Federal Network Agency reported a concerning increase in energy service interruptions. In 2024, the number of electricity disconnections rose by roughly 20%, reaching 245,000 instances, while gas disconnections also increased by a fifth, totaling 33,700 cases. This upward trend in disconnections has been attributed to rising energy prices and the possibility of providers implementing previously avoided disconnections.

Despite the current figures, the total number of disconnections remains lower than in previous years, with 352,000 electricity disconnections and 46,000 gas disconnections recorded in 2014.

Concerns regarding the rising trend in disconnections have been raised by social welfare organizations, highlighting that an increasing number of households struggle to afford basic utilities. Advocates stress the need for effective political measures to combat energy poverty, ensuring that no individual in Germany is left without reliable access to electricity and gas. Proposals include reducing electricity taxes and adequately addressing housing-related costs in social benefits.