Dusseldorf After last year’s record prices, prices for new customers are as low as they were before the energy price crisis began. They have fallen by an average of 60 percent since their record high last year. This was reported by the comparison portal Verivox on Tuesday.
A kilowatt hour of electricity currently costs 28.28 cents on average nationwide. In October 2021, the new customer tariffs were 28.04 cents per kilowatt hour. A year ago, prices had reached an all-time high of 70 cents.
The basic suppliers, on the other hand, are increasing their prices: from 33.82 cents per kilowatt hour to currently 48.67 cents. Despite the electricity price brake, it is now worth switching again: “Many private households can put the electricity crisis behind them. The basic supply can be abandoned at any time with a notice period of two weeks, and new customer tariffs are back to the pre-crisis level,” says Thorsten Storck, energy expert at Verivox.
How to find the right electricity provider, the cheapest electricity tariff and why switching is worthwhile despite the electricity price brake. Answers to the most important questions.
Switch electricity provider: when is 2023 the best time?
The electricity market appears to have calmed down again after the energy crisis. “Before the next heating season starts, it’s worth looking around for a cheaper contract with a price guarantee,” says Christina Wallraf from the NRW consumer advice center.
A megawatt hour of electricity currently costs just under 100 euros on the stock exchange. In the past year and a half, the prices had sometimes jumped up to 700 euros at the top. The massive increase in gas prices, failures at French nuclear power plants and Russia’s lack of energy supplies had made the markets extremely volatile in recent months.
Before the crisis broke out, a megawatt hour of electricity cost between 50 and 100 euros. This level now appears to be slowly returning. This also affects the prices for household customers.
According to Wallraf, expiring contracts now offer a good opportunity to take a look at the tariffs for new customers. A change from the more expensive basic or replacement supply can save a lot of money.
Switch electricity providers: How do you find a cheap electricity tariff?
According to Wallraf, comparison portals such as Verivox and Check24 offer a good opportunity to get an initial overview of the prices.
However, they include commission from providers and advertise them through the previously set filters. The following default settings should therefore be deactivated in order to avoid dubious offers when searching:
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Portal recommendations
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Offers that can only be concluded via the portal
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bonuses
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high customer recommendation rates
“Don’t just look at the first three offers, but also get an overview of the offers further down the page,” recommends Wallraf.
Not all tariffs are shown on comparison portals. If you don’t want to sign a contract with a discount provider, you can look out for well-known providers or ask the regional public utility company for special rates.
>> Read also: How consumers save money with power outages
Unknown providers should also be researched: How did the providers behave during the energy crisis? Additional information about the service of the providers can be read from customer reviews.
When is an electricity tariff considered cheap in 2023?
During the energy crisis, many households slipped into the basic supply. Although the price brake caps the discounts, consumers can save far more by switching. Several providers have lowered their price per kilowatt hour for new customers so that they are cheaper than the capped tariffs.
The electricity price brake is intended to protect consumers from very high energy costs. The individual annual consumption forecast in September 2022 is used to calculate the monthly payment with the price brake. Households pay 40 cents per kilowatt hour for 80 percent of this consumption, and the contractually agreed price of the provider for the remaining 20 percent. The remaining 20 percent can therefore be more expensive than 40 cents per kilowatt hour.
Single households or households with low consumption should choose a tariff with a low consumption-independent basic price. The low basic price means you can save even more.
What can I still save in 2023 by switching?
Most electricity providers promise a guaranteed price for a certain period of time in order to attract customers. With this price guarantee, suppliers are betting that the electricity price will not rise massively on average.
However, the electricity price is made up of various components: procurement costs, grid fees, taxes and surcharges. The offers often include different price components. In other words: the complete price cannot be guaranteed. Price increases are possible for the individual components.
“Price guarantees shouldn’t come at a high price,” says Christina Wallraf. “We don’t know how prices will develop in the future. We therefore recommend that you commit yourself for about twelve months and compare the prices again after a year.” A contract period of twelve months with a price guarantee that covers as many cost components as possible is therefore a good middle ground.
Bonuses are currently capped at 50 euros. They are not a cheap price guarantee and should initially be ignored when comparing tariffs.
How does the electricity provider change work in detail?
After the conclusion of the contract with the new provider, the latter automatically terminates the old tariff at the earliest possible date.
Customers who make use of the special right of termination must send their own notice of termination. Sample letters are available on the consumer advice center website.
Switching electricity providers: what should you be aware of?
Since March 1, 2022, only contracts with a maximum notice period of one month may be drawn up. Anyone who has previously signed a contract should check whether it will soon be automatically extended by a year and, if possible, cancel it.
If the old provider changes the prices, the special right of termination applies, even if the provider’s price reductions are not sufficient.
Another reason for a special right of termination is a move to a place of residence that the provider does not supply.
In the basic service, the contract can be terminated with a notice period of two weeks. This can be done at any time in the replacement supply.
Electricity price brake: Do you end up paying more if you use less?
The electricity price brake caps 80 percent of the previous year’s consumption. Anyone who manages to keep their consumption lower by saving benefits accordingly more from the electricity price brake.
Due to the current market situation, however, it is advisable to switch to a cheaper tariff for new customers and save additional electricity in order to reduce costs even further.
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