Electricity in Germany

Q: What is the Grundversorgung?

The Grundversorgung is your town's default tariff: if you never chose a provider, you are automatically on it. It is almost always the most expensive option. Good news: you can cancel it any time with two weeks' notice.

Q: Why is my electricity bill so high in Germany?

Often because you are on the Grundversorgung, the default tariff. The price shown on comparison sites sometimes includes a bonus paid only once in the first year – look at the price without the bonus for the real long-term cost.

Q: Is an electricity contract signed by phone valid in Germany?

Not automatically. A contract concluded by phone is only valid after your written confirmation. Without that written confirmation, you owe nothing.

What you need to know before you sign.

Everything you need to know about electricity in Germany: why the Grundversorgung is almost always the most expensive tariff, how to switch provider, what it really costs and your rights – explained in English.

Decoding what you see on screen

The same German words appear with every provider. Here are the ones that matter — and trap number one: the price shown is not what you'll pay.

ø pro Monat vs Abschlag — The big number shown (“ø pro Monat”, e.g. €36.58) is an average that already includes the bonuses. But your bank is actually charged the Garantierter Abschlag (e.g. €54/month). Always look at the Abschlag, not the average.
Sofortbonus / Neukundenbonus — Bonuses paid only once, in the first year. They make the offer look cheap at first — but from the second year they disappear and you pay more.
Preisgarantie — The period during which the price can't rise (often 12 months). State taxes are usually excluded.
Vertragslaufzeit / Kündigungsfrist — The minimum term (often 12 months) and the notice period to cancel (often 1 month).

The only question to ask: “What will I pay in the second year, without the bonuses?” Most comparison tools have a “Bonus nicht einberechnen” box (exclude bonuses) — tick it to see the honest price.

Worked example: what really leaves your account

Take an offer shown at €36.58/month, with an Abschlag of €54/month and €199 in bonuses (first year only).

Year 1

Charged each month: €54 × 12 = €648
Bonuses received (one-off): − €199
Real cost for the year: €449 — about ≈ €37/month

From year 2

No more bonuses
Charged each month: ≈ €54/month
Real cost for the year: ≈ €648

Year 2 costs ≈ €199 more than year 1. The “€36.58/month” shown was only the first-year average, inflated by the bonuses.

Example figures, to illustrate the mechanism. Real amounts depend on the offer and your consumption.

Grundversorgung: the most expensive tariff – and how to leave it

Have you never chosen an electricity supplier yourself? Then you are automatically in the Grundversorgung — your town's standard tariff. It is almost always the most expensive.

The good news: the Grundversorgung can be cancelled at any time, with two weeks' notice. No waiting, no minimum term.

Switching electricity provider in Germany: where to start

Your postcode. The price is not the same everywhere.
Your consumption in kWh. It's on your last annual bill (Jahresabrechnung). Don't have one? The tool estimates it from the number of people.
A German bank account (IBAN).

How much does electricity cost in Germany?

Your electricity bill has two parts: a fixed part you always pay, and a part that depends on how much you use.

Grundpreis (base price) — a fixed amount, charged every month. Yes, you pay it even if you use nothing.
Arbeitspreis (energy price) — the price of the electricity you actually use, in cents per kWh. A kWh (kilowatt-hour) is the unit that measures electricity used — one washing-machine cycle uses about 1 kWh. The more you use, the higher this part.

In short:
Grundpreis = the standing charge (pay it every month, even if you use nothing)
Arbeitspreis = what you consume (variable)
Your cost = Grundpreis + (Arbeitspreis × your usage)

Bonuses. Many tariffs look cheap because a bonus is paid once, in the first year. From year two you pay the normal price.
Abschlag — this is what actually gets taken from your account each month. It is often higher than the price shown in the list.

How do I switch electricity provider in Germany?

Your new supplier cancels the old one for you. You don't have to write anything. The power is never cut off — that is guaranteed by law.

Tip: photograph your meter when you move in and when you move out.

Your rights on an electricity contract in Germany

Grundversorgung: always two weeks' notice. You can leave any time.
Price increase? You may leave. The supplier must inform you in advance and point out this right. If they don't, the increase is invalid.
Signed online? 14 days to withdraw, no reason needed.
Signed on the phone? The contract is valid only if you afterwards confirm it in writing. Without confirmation, you owe nothing. (§ 41b EnWG)
Moving house? If your supplier cannot deliver at the new address — or only at a higher price — you may cancel.

Source: Bundesnetzagentur; § 20 StromGVV; § 41 and § 41b EnWG; § 312g, § 355 BGB. This is not legal advice.

Frequently asked questions

What is the Grundversorgung?

The Grundversorgung is your town's default tariff: if you never chose a provider, you are automatically on it. It is almost always the most expensive option. Good news: you can cancel it any time with two weeks' notice.

How do I switch electricity provider in Germany?

You compare offers by postcode, choose one, and the new provider handles everything – with no power cut. You need your annual consumption in kWh (on your statement) and a German bank account (IBAN).

Why is my electricity bill so high in Germany?

Often because you are on the Grundversorgung, the default tariff. The price shown on comparison sites sometimes includes a bonus paid only once in the first year – look at the price without the bonus for the real long-term cost.

Is an electricity contract signed by phone valid in Germany?

Not automatically. A contract concluded by phone is only valid after your written confirmation. Without that written confirmation, you owe nothing.

How do I cancel my electricity contract in Germany?

On the Grundversorgung: any time, two weeks' notice. On a normal contract: at the end of the term, with the agreed notice. If the price rises, you have an immediate right to cancel.

Compare electricity tariffs →

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