Electricity contracts in Germany

1. Basic supply and why it is expensive

Every address has a designated basic supplier, so the lights work from the day you move in even if you have signed nothing. This is deliberate consumer protection, not a good deal: the basic tariff is typically well above what you would pay on a contract you chose.

Switching away is straightforward and the supply itself never gets interrupted, because the physical network is separate from the company that bills you.

2. Meter readings

Photograph the meter and note the number on your first day, and again on your last day in a flat. Those two readings decide what you owe and are the only evidence you will have if a bill looks wrong.

Your supplier asks for a reading roughly once a year. If you do not provide one, they estimate, and estimates are often uncomfortable in one direction or the other.

3. The monthly instalment and the annual bill

You pay a fixed monthly Abschlag based on expected annual usage. Once a year the supplier compares your actual consumption with what you paid and either refunds the difference or asks for it.

If your usage changes — someone moves in, you start working from home — ask to adjust the instalment rather than waiting for a large annual settlement.

4. Changing supplier

You can change supplier, and the new one usually handles the cancellation for you. Watch for contract length, whether a headline price depends on a first-year bonus, and how price changes are communicated.

Comparison sites are commercial and ranked by commission. Use them for orientation, then check the terms on the supplier’s own site.

5. If there is a dispute

The Bundesnetzagentur is the regulator and runs a consumer service for electricity and gas. It publishes neutral guidance on switching, basic supply, meters and complaints, and it is the right place to look before accepting that a bill or a price rise is simply correct.