Electricity and gas: Price changes among key suppliers benefit millions of households
Starting from January, many households in Germany that rely on the basic energy supply tariff may see a significant decrease in electricity and gas costs, according to new data released by the comparison site Verivox.
Regional utility companies announced 113 reductions in electricity prices with an average of 9%. With an annual consumption of 4,000 kWh, the consumer will save about 161 euros annually, benefiting approximately 2.2 million households still on the basic supply system. However, four companies recorded a slight increase of about 1%.
Among the companies that reduced their prices is Rheinenergie (Cologne), where the price per kilowatt-hour will become 31.48 cents, a decrease of about 12%. In Mannheim, MVV will reduce the price by about 11% to reach 34.82 cents per kilowatt-hour. Energy expert at Verivox, Thorsten Storck, mentioned that government support for electricity network fees contributed to the price reductions, but the benefits will not cover all areas.
Gas prices will also see a decline, as 69 major suppliers announced average reductions of 7%, which will affect around 700,000 households. For a family home consuming 20,000 kWh annually, savings could reach about 183 euros per year. In contrast, 10 companies will raise prices by an average of 6%. Storck explained that the stability of wholesale gas prices and the cancellation of gas storage fees helped create room for reductions despite rising network usage costs.
Cities like Cologne and Munich will see a reduction in gas prices by about 8%, while prices will remain unchanged in Mannheim. Basic supply means receiving electricity and gas automatically from the main supplier without signing a special contract, and there are about 800 electricity suppliers and 700 gas suppliers for basic supply in Germany. Any changes in prices must be announced at least six weeks in advance, and about 25% of households still rely on the basic electricity tariff, while 20% rely on the basic gas tariff.